PROBLEMS AND PROSPECTS OF ECONOMIC DEVELOPMENT OF UKRAINE DUE TO EURO INTEGRATION

УДК 331.6(477.62)

Рєзнікова А.В., студентка 1 року ОС магістр
ХНЕУ ім. С. Кузнеця

In modern conditions Europe serves as the main landmark and foreign economic interest for Ukraine. The strategic course chosen by our state is European integration. The main interests of Ukraine are concentrated around the European Union which today unites not only the majority of Western European countries but also the states of central and Eastern Europe.

Euro Integration is a civilized choice of Ukraine, one of the key requirements of the revolution of dignity. It occupies a special place in the system of foreign policy priorities of Ukraine. For Ukraine, European integration is a way of modernizing the economy, overcoming technological backwardness, attracting foreign investment and new technologies, creating new jobs, increasing the competitiveness of the domestic commodity producer, entering the world markets, first of all, into the European Union (EU) market. As an integral part of Europe, Ukraine focuses on the model of socio-economic development in the leading European countries [5].

In general, relations between Ukraine and the EU were initiated after Ukraine gained independence. Then for the first time, there was a call from the European Union to support Ukraine with an open dialogue and open relations with the member states.

The position of Ukraine regarding the European Union was formed for the first time at the legislative level in the main directions of Ukraine’s foreign policy which was approved by the Ukrainian Parliament (Verkhovna Rada) of Ukraine on July 2, 1993. Starting from this moment Ukraine began to gravitate towards the European integration union and from that moment on tried to join the EU, we can observe these efforts to this day [4].

In recent years Ukrainian society has essentially changed, in particular, changes have taken place in spiritual, cultural and political values that evidently evolved. At the same time, the issue of confronting values in the Ukrainian society is becoming more and more relevant. European integration and EU membership are a strategic goal of Ukraine, because it is the best way to realize national interests – building an economically developed and democratic state, strengthening positions in the world system of international relations.

The development and implementation of the state strategy for increasing the competitiveness of domestic production requires substantive research and the development and implementation of practical measures. First of all, there is a need for changes in the vision of the problems of competition by the state that is the creation of such an industrial policy of an independent state that would meet market conditions, meet the requirements of integration into the global economic system, and pursue national interests. The goal of industrial policy at the stage of Ukraine’s integration into the EU should be to increase the competitiveness of domestic production.

In a context of financial globalization in Ukraine, it is extremely necessary to create a financial market, which will be the main mechanism for converting deposits into investments, redistributing capital and ensuring transparency of financial flows. At the end, it is necessary to significantly improve the efficiency of the state financial policy in relation to the development of the securities market, commodity market, collective investment market, supervision and control over the investment of pension funds in the framework of the mandatory pension provision of the population of Ukraine [1].

Fitch, the international rating agency, notes that there remains a serious risk for the Ukrainian economy, despite an agreement with the International Monetary Fund. Thanks to financial assistance from the IMF, Ukraine somewhat stabilized the economy and moved closer to integration into Europe.

In order to receive IMF funding the Ukrainian authorities need to take a number of measures among which:

  1. anti-corruption reform and reform of the judicial sector;
  2. deregulation and tax administration reform in order to improve the business climate and attract investment;
  3. reform of state enterprises of Ukraine, including restructuring of “oil and gas”.

Effective fiscal policy is based on complex institutions (budget system, stock market, insurance companies, etc.), the development of which not only reduces risks, minimizes transaction costs and promotes optimal allocation of resources, but also provides formation of adequate modern conditions of the institutional structure of the financial system state. In order to increase the effectiveness of complex institutions and prevent institutional disruptions, it is imperative to use these institutions and manage the process of their adaptation to the requirements of globalization and European integration [2].

According to economists, Ukraine by 2020 will not become a member of the EU, as the EU is currently in crisis. Also, Ukraine’s accession to this integration association is made impossible by the fact that a country will join the EU, which needs very serious compensations from the closure of entire industries.

European integration for Ukraine is a way to improve and modernize the economy, attract foreign investment and the latest technologies, increase the competitiveness of the domestic commodity producer, free movement within the integration association of skilled labor, goods of services, factors of production, as well as access to the only common market. Ukraine’s cooperation with the EU will help to bring Ukraine closer to the high European standards, raising the standard of living and well-being of the population [4].

The development of relations with the European Union in the long-term perspective should remain one of the priorities of Ukraine’s foreign economic policy. The main efforts should be directed towards Ukraine’s integration into the General-European economic space by expanding the access of Ukrainian goods to European markets, eliminating economic barriers to trade and deepening productive cooperation, harmonizing economic legislation in accordance with EU and WTO standards, and creating economic and legal prerequisites for the establishment of a free trade zone Ukraine-EU.

The prospect of EU integration in Ukraine depends to a large extent on a number of economic problems. Ukraine’s choice opens up new perspectives of cooperation with developed countries of the continent, provides opportunities for economic development, strengthening of Ukraine’s position in the world system of international relations. This is the best way to realize national interests.

REFERENCES

  1. Kavetsky V.V. Economic justification for innovative solutions: [Teach. Guide] / V.V. Kavetsky, I.V. Tracee, L.O. Nikiforov – Vinnitsa: VNTU, 2015. – 136 p.

  2. Michman D. “Catastrophe” from the point of view of historians: problems of conceptualization, periodization and interpretation / D. Michman / Historiography of a catastrophe: a Jewish view. – Dnipropetrovsk, 2015. – P. 21-56.

  3. Naumenko I. Competitiveness of the Economy and Competition Policy of Ukraine in the Context of European Integration / I. Naumenko // European Integration and Ukraine. – K.: Macros, 2012. – P. 90-107.

  4. Lesko O.Y., Prychepa I.V. Problems of innovation and investment development of industrial enterprises under current conditions / O.Y. Lesko I.V. Prychepa // Bulletin of the FPI. – 2016. – No. 1. – P. 44-48.

  5. Prokopiuk A. Structural Transformations of the Region’s Economy in the Conditions of European Integration: Polish Experience and Prospects for its Use in Ukraine / A. Prokopyuk. – Lviv: Institute of Regional Studies named after MI Late NAS of Ukraine, 2016. – P. 304-307.

Науковий керівник

К.ф.н., доцент: Савицька Л.В.