SPEECH/05/582
Siim Kallas
Vice-president of the European Commission responsible for
Administrative Affairs, Audit and Anti-Fraud
Ukraine facing the future. On the road
to reforms
Panel discussion “Policy of reforms in Ukraine – basis for stability
and prosperity of the society”
Brussels, Hotel Sheraton, 6 October 2005
Dear Prime Minister,
Distinguished Participants,
Dear Friends,
I think it was an excellent idea of the Ukrainian Mission and the European Policy
Centre to give us the possibility to exchange views, shortly after the appointment of
a new government. Many thanks for this! I warmly welcome Prime Minister
Yekhanurov and the members of his team present here with us.
I am grateful for the opportunity to present you my views on the topic of our panel
which looks into key aspects of the reform policy in Ukraine.
In my intervention I want to focus on three key aspects:
- first, I want to demonstrate that the EU and Ukraine have developed an
increasingly close relationship since Ukraine became independent in 1991
- second, let me focus on key issues which Ukraine will wish to address in the
months and years ahead in the process of political reforms which has been
launched by the Orange Revolution
- third, I wish to speak about the longer term perspectives of our relationship, i.e.
the question: “Where do we go?”
I. The EU and Ukraine – an evolving relationship
As I see it, since Ukraine became independent in 1991, both the EU and Ukraine
have made serious efforts to strengthen relations. But in a first and rather long
phase there were clear limits, mainly related to the lack of political reform in Ukraine
itself. Last year’s Orange Revolution has created the conditions for Ukraine and the
EU to move to a much higher gear.
At the beginning stood EU efforts to help the country in a very pragmatic way. Let
me recall the broad range of areas in which EU assistance supported Ukraine. We
promoted political and economic reform by means of our assistance, which covers a
broad range of areas, including support to the Chernobyl Shelter Fund.
By concluding the Partnership and Cooperation which entered into force in 1998 we
reached a milestone. This agreement paved the way for a significant broadening of
our cooperation to include in particular regular political dialogue at various levels
and an expanding cooperation in a broad range of sectors.
The detailed history of the implementation of the PCA still needs to be written. But
already today we can confirm that this agreement very significantly strengthened
the European dimension of our relationship. Since 1998 we have been continuously
strengthening our interaction at the EU level proper.
One of the main aims of EU policy is to increase transparency. We ask our partners
to create clear structures which are transparent and accountable. The EU also
should do this itself. I have been working on transparency for some time and
launched the Transparency Initiative which will make the EU more transparent and
accountable. I am looking forward to share our experiences with the authorities of
Ukraine and to also work together in this field.
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Another important field of co-operation is the fight against fraud. Ukraine borders
the EU and organized crime will try to create wholes which will enable smuggling
and contraband. Indeed, most cases deal with smuggling (alcohol and cigarettes)
and other customs related issues.A Protocol on mutual assistance between
administrative authorities in customs matters has been signed a few years ago.
The cooperation with Ukrainian authorities is working well. OLAF is satisfied of the
existing cooperation in tackling customs fraud and the evasion of customs and
excise duties. We would like to intensify this efficient cooperation.
The European Neighbourhood Policy has opened further opportunities for
cooperation. This policy provides for a very comprehensive relationship. It covers
the broad range of aspects of political and economic relations in addition to
cooperation on more specific issues such as environment, education, health and
also assistance. As a long-term perspective a stake in the internal market is on
offer. In this sense this policy represents the most serious effort undertaken so far
fully to exploit the very significant potential of the existing cooperation agreements.
We should all welcome this.
The single most important lesson I draw from this outline of a relationship which is
much more complex than I have been able to show is the following: We have been
in a position to make progress in our relationship to the extent that Ukraine has had
a genuine political will to take the twin objectives of political and economic reforms
seriously.
Ultimately, the main benefits for our partners lie in the results of internal reforms. It
is therefore primarily the vision of a prosperous and democratic state that should
motivate the political leaders of our partners in their reform efforts.
Of course, the EU stands ready to provide support. But it has been a challenge and
at the same time reassuring for our partners to recognise that the future depends
primarily on themselves – on determination to make their country work. For Ukraine
as for other partners that insight provides a sound basis for the future.
II. Promoting political reforms in Ukraine
Let me now focus on political reforms which are the main topic of our discussion.
- Let’s look at the broader picture first and clearly recognise: The Orange
Revolution has created a unique opportunity for Ukraine to realise its European
aspirations and to transform itself in a modern democratic country. Both at home
and among friends abroad, expectations are extraordinarily high. Clearly, one of
the key challenges of the present Ukrainian leadership is to “manage
expectations” that is to say to demonstrate that Ukraine does follow the path
which the Orange revolution opened.
- “Political reforms” is a heading under which ultimately all efforts fall which aim at
promoting the further transformation of Ukraine in a modern, democratic state.
The issue of Ukraine’s economic reforms is, ultimately, highly political. To say
just this: We strongly hope that Ukraine will realise its ambition and join WTO
before the end of this year, since this will have a huge repercussion on
Ukraine’s economy and further integration into the processes of globalisation.
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- I am glad to note that we have a key tool at our disposal to promote the
necessary political and also economic reforms in Ukraine, namely the EU
Ukraine Action Plan which the EU and Ukraine jointly endorsed in February.
Only the Orange Revolution made it possible for the EU to move to the
implementation phase.
- Moreover, in recognition of the very positive developments in Ukraine, the EU
has made a significant effort to provide additional support to Ukraine’s reform
efforts. The General Affairs Council, on the basis of proposals made jointly by
Commissioner Ferrero-Waldner and HRSG Solana, agreed on what I am
tempted to call a “Plus”, i.e. a range of additional measures, including the
enhancing of energy relations, closer cooperation on CFSP issues and the
launching of visa facilitation negotiations.
- I do not have the possibility here to present a detailed overview of how the Action
Plan and its “Plus” have been implemented over the last 7 months. Let me limit
myself to a few broad comments: We have seen a good start on a range of
important issues such as the consolidation of media freedom, the Common
Foreign and Security Policy, including new Ukrainian efforts for settling the
Transnistria conflict, energy, transport and Justice and Home Affairs. The EU
Ukraine Summit on 1 December will provide an important opportunity to
acknowledge these and other first achievements.
- At the same time the Summit will allow us to identify key challenges ahead.
Today, in the presence of the new Prime Minister of Ukraine and key
representatives of his government, let me mention examples for priority issues
which Ukraine will wish to tackle. I am, of course, interested to hear whether or
not our Ukrainian friends can agree!
- As I see it, recent events have in particular confirmed the importance of a clear
separation between business and politics. This separation should foster the
implementation of the rule of law in Ukraine more generally and thereby also
enhance the security of domestic and international investment.
- Recent events have also confirmed that corruption continues to be seen as a
major challenge in Ukraine itself. Clearly, the new government will need to take
energetic and credible steps to ensure progress in this very important matter
which, if not addressed properly, seriously risks derailing Ukraine’s reform
policy.
- Let me also highlight the issue of administrative reform which has barely started.
Reforming the administration of a country with 50 million inhabitants is certainly
a huge challenge. As the European Commission member dealing with the
issues of our internal administration more specifically, I am well aware of this. At
the same time administrative reform is key for promoting change to the better, in
an institution like the Commission and also in the overall process of the
modernisation of a country. I seriously hope the size of the challenge will rather
encourage than discourage reform efforts!
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- A few words also on the importance of the rule of law. Clearly, democracy will not
work without a fully functioning legal system. I am sure Ukrainians wish to see
judges appointed in a transparent way, laws not only adopted but also enforced,
police being checked by internal controls. Similarly, domestic and foreign
investors alike want to know that transparent, simple and predictable rules
shape the business environment, not arbitrary decisions. In Ukraine as in other
countries, strong rule of law is therefore a key condition for sustainable
economic development.
- And most importantly: Ukrainians who fought so hard to make their voices heard
democratically, will wish to know that the Orange Revolution fully respects its
commitments as regards the process of democratic elections. The preparations
for and the conduct of the parliamentary elections in March next year will be the
litmus test for the credibility of the leaders of Ukraine’s Orange revolution. Free
and fair elections are rightly mentioned as a priority in the Action Plan. The EU
will follow these elections very carefully to see whether Ukraine respects the
commitments it has taken towards the EU, the Council of Europe and OSCE in
this important domain for the future of the country.
- Let me conclude my short overview of key challenges and stress that these are
just a couple of examples of areas on which Ukrainians and the EU will wish to
see progress. This progress alone will provide the basis for a further
strengthening of the relations between the EU and Ukraine.
III. Where do we go?
Ladies and Gentlemen,
Dear Friends,
Let me now turn to the third and last part of my short presentation, namely my views
on the future of the relationship between the EU and Ukraine. I will therefore try to
answer the question: “Where do we go?”
Looking at what happened to my own country, Estonia, I am profoundly convinced
that History is open, and, of course, we cannot tell today where exactly Ukraine and
the EU will stand in ten or 15 years from now.
But the EU has clearly recognised the importance of Ukraine as a key partner of the
EU. Moreover, by words and deeds the EU has launched a policy which will bring
Ukraine much closer to the EU, if the necessary reforms in Ukraine are carried
through, as we all wish.
As Ukraine makes genuine progress in carrying out internal reforms and adopting
European standards, relations between the EU and Ukraine will become deeper and
stronger.
The European Commission looks forward to close cooperation with the new
government in taking this process forward.
Thank you.
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