We show that the 2D XY-model with random phase shifts exhibits for low
temperature and small disorder a phase with quasi-long-range order, a
nd that the transition to the disordered phase is not reentrant. These
results are obtained by heuristic arguments, an analytical renormaliz
ation group calculation, and a numerical Migdal-Kadanoff renormalizati
on group treatment. Previous predictions of reentrance are found to fa
il due to an overestimation of the vortex pair density as a consequenc
e of the independent dipole approximation. At positions where vortex p
airs are energetically favored by disorder, their statistics becomes e
ffectively fermionic. The results may have implications for a large nu
mber of related models.