Экономические науки/ 16.Макроэкономика.

Nedeva U.S.

Vlasova I.A.

Donetsk state university of economics and state after Michael Tygan-Baranovsky, Ukraine

Ukraine - European Union: Prospects of Integration

Reference to the "European Idea" in the last decade signals a thorough understanding of the needs of peaceful development on the continent, a response to the challenges of the world wars that started in Europe. Studying the dynamics of European integration, Doctor of History A. Kudryachenko notes that in its development the EU has undergone several stages that differed from each other as to the level of development of integration, its results and extension of the spheres of interrelation. Overcoming their hardships the EU member-states strived for adequate results of economic and social development due to the application of primarily economic instruments and progressive forms of relations. The EU has bee enlarged several times and now presents itself as a union of 27 European states.

Today democracy is not only a panhuman value but also an important basis of modern international law. In many cases the principle of transparency of power serves as a crucial indicator of the democracy of the country and significantly influences its image on the international arena. Steadfast implementation of democratic principles by Ukraine substantially determines the success of external political initiatives and serves as efficient means of increasing international trust to it both on the part of separate countries and the world community as a whole.

The strategy of full-fledged and large-scale integration into the European Union became the cornerstone of Ukrainian foreign policy. The idea of a United Europe is the most efficient for us and attractive model for us, in which the dynamic economy and technological access favorably go with improved standards of life and protection of human rights. We believe that present democratic Ukraine is worthy to have the prospect of joining the European Union. Without this the idea of united Europe, which inspired the founders of the EU would remain unaccomplished.

The main task in the economic sphere must be the establishment of a competitive market economy, improvement of the investment climate, insurance of macroeconomic stability and stable growth.

Currently, there exist a number of economic problems, which are acute for both Ukraine and the countries of the European Union. Their settlement requires close collaboration. First of all we talk of the energy sphere. Reliable energy supply and diversification of the supply of energy carriers is one of the crucial tasks of the national security of Ukraine. At the same time maintenance of the existing transport corridors and creation of new ones, particularly in the framework of the accomplishment of the project of the Euro-Asian oil transportation corridor is of vital importance for Europe and Ukraine. Special attention should also be paid to the nuclear safety, including the problem of Chernobyl Nuclear Power Station and relevant aid on the part of the EU.

Very important is also the issue of adjusting the policy of Ukraine in the sphere of employment and social insurance to the standards and policy of the EU. Improvement of the quality of life will become the best argument of the correctness of the European choice and ensure wide support of the course of reforms by the community.

In view of the expiry of the 10-year term of APC in March 2008, on 5 March 2007 Ukraine and the EU started negotiation on the conclusion of a new Framework Agreement, temporarily called the “new intense agreement”. For the period before the conclusion of the new intense agreement the validity of APC will be automatically be prolonged annually with the mutual consent of the parties.

Significant positive political influence on the development of relations between Ukraine and the EU was made by the extension of the EU in 2004, as a result of which there appeared “a group of Ukraine’s friends” in the European Union — a number of Central-European countries with conventional partner relations with our country.Vivid confirmation of the choice of Ukraine in favor of the democratic way of development facilitated thorough reassessment of its policy with regard to Ukraine by the EU, search of new, unconventional instruments and mechanisms.However, a true quality breakthrough in bilateral cooperation took place during the democratic presidential election in winter 2004 and parliamentary election in the spring of 2006.

Ukraine and the EU agree that intensification of the economic integration must be one of the priorities of cooperation for the nearest future.This goal is to be achieved through the conclusion of the agreement on a comprehensive and intense free trade area within the framework of the new intense agreement, which will stipulate liberalization in the sphere of movement of goods, capital and services and wide harmonization of non-tariff instruments of economic regulation (technical standards). Upon finalization of Ukraine's joining of the WTO at the beginning of February 2008, during the visit of the EU Trade Commissioner P. Mendelson to Ukraine the formal opening of negotiations on the conclusion of the agreement on an intense free trade area took place. Ukraine actively interacts with the EU in the sphere of illegal migration control, readmission, fighting against organized crime, counterterrorism, and carries out active reforms in border management, migration and visa policy, and respective legal basis. In recent years the cooperation between Ukraine and the EU in the field of power supply, including nuclear power, agriculture and environmental protection noticeably intensified. The EU’s political and financial assistance rendered to Ukraine for resolving burning problems in the energy sector and overcoming the Chernobyl aftermath.

Summarizing it should be noted that the state policy aimed at European integration is justified for Ukraine both economically and geopolitically, since the policy aimed at closer cooperation between Ukraine and the EU is already justified from many points of view. And here we do not need a one time breakthrough but planned, systematic and assiduous work. Wide structuring of relations, internal reforms, the formation of relevant public opinion, and adequate awareness of the tasks and consequences of settlement of any issues related to the prospects of integration of our state are very important in the activity of Ukraine on its way. The observance of the European integration strategy by Ukraine is a single source process in terms of the national interests of Ukraine and geopolitical global dimensions of the development of the continent.