The Council of the European Union has approved the Ukraine-EU Association Agreement. Ukrainian legislators passed a number of bills before leaving for the summer vacation, supporting the Cabinet's proposal to increase revenues and expenditures of the state budget. The Boryspil Airport has at first said goodbye to, but then resumed negotiations with Ryanair. The hryvnia continued to strengthen. These are the main economic news of the outgoing week.
On Tuesday, July 11, the Council of the European Union approved the Ukraine-EU Association Agreement, thereby completing its long-sought ratification. It is expected that the document will come into force on September 1, 2017.
The deal introduces at a legislative level the introduction of a free trade area between Ukraine and the EU, which will lead to trade liberalization, an increase in exports to the EU, an increase in foreign exchange earnings and, as a result, the development of the Ukrainian economy. In addition, the Association provides for the implementation by Ukraine of a number of reforms aimed at integration into the European political and economic space.
"From September 1, 2017, a qualitatively new stage of our journey to the European Union will begin. This is a stage of deep and comprehensive reform that will require maximum efforts and unification of all branches of the Ukrainian government, businesses, and civil society for the sake of building a better European future for the Ukrainian people. And along this path we will be assisted by the European Union and the entire civilized world," President Petro Poroshenko said, commenting on the historic event.
The EU Council ratified the Association Agreement on the eve of the Ukraine-EU Summit, held in Kyiv and dedicated to the implementation of further cooperation programs.
During the summit, the parties discussed the possibility of developing a new long-term plan for economic support, similar to "Marshall Plan" - a comprehensive U.S. assistance program for Europe after World War II.
In addition, Ukraine and the EU agreed that the successful implementation of reforms will allow Ukraine to receive from the EU by year-end a third tranche of macro-financial assistance in the amount of EUR 600 million.
The conditions for obtaining financial support will fighting corruption, continuing energy efficiency programs, and deepening cooperation in resolving the problems of internally displaced persons. According to Valdis Dombrovskis, Vice President of the European Commission, it is important that Ukraine manage to complete everything by mid-November, in order to see the money before the end of 2017, that’s considering internal procedures within the EU that also take time. To monitor effectively the process of key reform implementation, the government plans to develop the so-called “Agreement Pulse” - an innovative tool for monitoring the implementation of the Association deal. Volodymyr Groysman says the mechanism is set to be introduced in September 2017.
The head of government also wrote on Facebook that the indicator of positive changes in the state is the improvement of the forecasts for the economy growth. According to Mr Groysman, the World Bank improved its outlook of Ukraine's economic growth in 2018 from 3%, to 3.5%, and from 3% to 4% in 2019. At the same time, the prime minister has noted that now the main task is to transform the expected economy growth into the improved quality of life of Ukrainian citizens
Source: https://www.unian.info/economics/2030606-weeks-balance-eu-completes-ratification-of-ukraine-association-deal-rada-amends-state-budget-before-going-on-vacation.html
