[{"bbox": [137, 153, 1180, 258], "category": "List-item", "text": "* Supporting the participation of the country in EU Programmes and cooperation with EU Agencies, where relevant. In this regard, improving participation of Guatemala in Horizon Europe programme by strengthening cooperation between academia, research centres and private sector and alliances with EU partners will be a key objective of the Facility."}, {"bbox": [137, 258, 1179, 311], "category": "List-item", "text": "* Strategic communication, covering political communication and public-facing campaigns, designed to raise awareness of the EU's role and impact in the country and, as relevant, wider region."}, {"bbox": [137, 311, 1180, 443], "category": "List-item", "text": "* Public diplomacy initiatives allowing to engage durably with our target audiences and partners (beyond the life cycle of specific cooperation projects), which is key to build trust, enhance the understanding of the EU, support the implementation of our policy priorities and, ultimately, facilitate future cooperation across policy areas (incl. sectoral diplomacies such as economic diplomacy, climate diplomacy, cultural diplomacy, science diplomacy)."}, {"bbox": [87, 497, 328, 528], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [87, 562, 238, 589], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [98, 609, 1188, 740], "category": "Text", "text": "Guatemala has a multi-party political system with important weaknesses. As a result, many political parties are built upon personalised interests and therefore, have short life spans. Political actors have increasingly gained control and influence over the judicial organs and the Constitutional Court after the closure in 2019 of the International Commission against Impunity in Guatemala (CICIG). This has represented a negative impact in the separation and balances of powers further undermining democratic checks and balances."}, {"bbox": [98, 767, 1188, 978], "category": "Text", "text": "Regarding human rights, the institutional framework has been weakened as the Government of Guatemala merged three key entities related to human rights into a new Presidential Commission for Peace and Human Rights (COPADEH), whose scope, responsibilities, functioning and budget have not yet been defined. Within the overall deterioration of human rights in the country, women and girls are particularly at risk. LGBTI rights are not recognised with even new legal initiatives detrimental to the cause. Indigenous groups constituting about half of the population are widely discriminated. This is reflected in social interaction, in work environments and indirectly by government decisions to focus the social investments, health initiatives, key services etc. in urban rather than rural areas, where the majority of the indigenous people live."}, {"bbox": [98, 1004, 1188, 1295], "category": "Text", "text": "As from the onset of the COVID-19 pandemic in 2020, Guatemala still faces challenges related to the sanitary crisis, which affected the living conditions of most citizens. Nevertheless, in an international context of high uncertainty, Guatemala's macroeconomic fundamentals remain stable. In fact, according to the latest International Monetary Fund (IMF)'s Article IV Staff Report (19 May 2021)⁴, the economy's 1.5% contraction in 2020 fares well in global and regional comparison. Resilient remittances and an unprecedented fiscal impulse of 2.3% of GDP and monetary policy support have mitigated the negative impact of the COVID-19 pandemic. Moreover, a 4.5% rebound in economic growth is projected for 2021. Inflation is under control (4 ± 1%) and public debt, although it increased from 26.5% to 31.6% of GDP to finance the aforementioned policy support, is deemed sustainable (projected at 34% of GDP on average during 2021–26). Accordingly, the fiscal deficit increased to 4.9% in 2020, but is foreseen to come down to a more manageable 3.4% in 2021 and to decrease further in the medium-term to gradually attain the historical mark of 2% by 2026. Moreover, the exchange rate of the national currency (Quetzal) against the USD has remained stable."}, {"bbox": [98, 1320, 1188, 1400], "category": "Text", "text": "Low fiscal revenues continue to be a significant obstacle for Guatemala and hinders its ability to react to all types of shocks and natural hazards (World Risk Report 2020)⁵. For 2022, tax revenues are expected to increase to 11.7% of GDP, which is still very low considering Guatemala's deep social and economic inequalities."}, {"bbox": [87, 1461, 1164, 1508], "category": "Footnote", "text": "⁴ https://www.imf.org/en/News/Articles/2021/05/04/mcs050421-guatemala-staff-concluding-statement-of-the-2021-article-iv-mission"}, {"bbox": [87, 1509, 934, 1535], "category": "Footnote", "text": "⁵ https://reliefweb.int/report/world/worldriskreport-2020-focus-forced-displacement-and-migration"}, {"bbox": [1091, 1570, 1198, 1594], "category": "Page-footer", "text": "Page 4 of 12"}]