INTEGRATION PROSPECTS OF UKRAINE IN THE CONTEXT OF ENTERING INTO EUROPEAN UNION

Kyiv National University of Technologies and Design, Ukraine

INTEGRATION PROSPECTS OF UKRAINE IN THE CONTEXT OF ENTERING INTO EUROPEAN UNION

Abstract

The article describes the stages of entering procedure into European Union, criteria, which must be executed for entering into EU, and also generalizes positive and negative con- sequences of membership of Ukraine, in EU

Key words: Integration processes, World Trade Organization (WTO), European Union (EU), Ukraine

Introduction

A strategic external policy purpose of Ukraine for today is entering into such organiza- tions as World Trade Organization (WTO), European Union (EU) and Organization of the North Atlantic Agreement (NATO).

During the last years the way of integration to each of these organizations was diverse for Ukraine variously. On each way of the integration Ukraine experience both great suc- cesses and failures, however one strategic success has been attained such as – close approach to joining WTO, and execution of number of criteria for entering EU.

It is clear, that the basic pre-condition of entering each of the organizations foremost is foremost stability of home policy and internal economic development of country- candidate.

A membership in the mentioned above organizations is impossible without stable de- velopment of political situation in the state, functioning of the institute of democracy, provid- ing of observance of rights and freedoms of a man, development of public society.

Raising of task

The purpose of the article is researching of the level of readiness of Ukraine for enter- ing world organizations and estimation of possible positive and negative consequences of membership of Ukraine in EU.

Results and their discussions

Ukraine has already got the status of the country with a market economy from EU and USA. However completed reforms are necessary for the effective functioning of internal mar- ket and more deep integration to the world economy.

In the countries of Central Europe a push to reforms was a prospect of membership in EU. And although EU is not ready to discuss a prospect in relation to Ukraine so far, it is nec- essary to be determined distinctly, what advantages and disadvantages Ukraine will have at the terms of membership in EU.

There are certain criteria of entering into each of world organizations, including to EU.

In relation to their implementation it should be noted that Ukraine approaches some criteria of

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economic and currency union of EU, namely in relation to the necessary size of deficit of budget, stability of monetary item, sizes of inflation and national debt.

The number of criteria in a political and economic sphere, which are foremost related to the considerable legislative changes and introduction of measures on the increase of basic indexes of economic activity, is also executed.

The program of subsequent measures which will be instrumental in providing of other criteria of entering into EU is also foreseen.

In spring 2008 the term of implementation of the Agreement about partnership and collaboration between Ukraine and European Union is close, instead a new agreement must come it. Before the beginning of the negotiations EU was already ready to offer Ukraine the

«increased» agreement.

EU is interested in such agreement for the sake of expansion of influence in the region and access to the new markets. It means that even without the officially acknowledged pros- pect of membership Ukraine can get access to the internal market of EU, possibility of more active policy of collaboration and economic integration.

The understanding of expedience of Ukraine entry into international organizations foresees the clear awareness of the basic stages of entering procedure into them. It is possible to select five basic stages of entering process into European Union.

1. Consultant stage lasts before the country presentation of statement of entry. The practice shows that on this stage country applicants on an entry concluded one of the three types of associative agreements: European agreement (Poland, Hungary, Romania, Bulgaria, Czech, Slovakia, Estonia, Lithuania, Latvia, Slovenia), Agreement about an association (Tur- key, Malta, Cyprus), Agreement about stabilizing and association (Balkan countries). This stage is completed by the presentation of the country-applicant the statement of entering into European Union.

2. Evaluation stage which lasts between the presentation of statement of entry and beginning of negotiations a country about an entry. On this stage countries try to execute most criteria of membership in EU, and the state acquires status of country-candidate on entering into EU.

3. Negotiation stage which lasts from the beginning to completion of negotiations about an entry. On this stage terms on which every candidate can join EU are determined, term of acceptance and others like that. It should be noted that every country-candidate oper- ates according to the separate schedule and can be accepted to EU as quickly, as far as quickly it will attain the accordance to the criteria of entry and membership obligations.

Negotiations take a place as series of bilateral conferences between country members and each of country candidates according to such basic sections: competition policy, transport policy, energy, tax policy, customs union, agriculture, justice and internal affairs, financial sphere, regional policy, budgetary assignations and others like that.

The results of negotiations are included into the project of agreement about entering of country candidates into EU.

4. Ratification stage which lasts between the signing of the agreement about an entry and its ratification. An agreement about an entry before the signing must be presented to European Advice for approval and to European Parliament for the grant of consent.

After signing the agreement about an entry is presented to the country members of EU and country candidates for ratification and acceptance of decision country candidates decision about an entry, in case of necessity through the procedure of referendum.

Thus, a successful course of negotiations, and even their completion, is not the guaran- tee of entry of a country to EU. For example, Norway the government of which successfully conducted negotiations twice, even signed Agreement about an entry, did not become the member of EU, because entering EU opponents won a referendum twice, although with a

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small advantage.

Switzerland also presented the application about an entry, but a process was not com- pleted, as the population of the country pronounced against the ratification of Agreement about the European economic area on the referendum.

5. Implement stage which begins after the implementation of all of the ratification procedures and the acquisition the agreement of validity. Only after a country becomes a full- fledged member of EU. In its turn, every institutional organ of EU has certain powers con- cerning the acceptance of new members to EU.

In June, 2001 European Advice made a decision to invite Ukraine and Moldova to par- ticipate in European Conference – multilateral structure, within the framework of which the state-members of ES and country candidates discuss the urgent questions of collaboration in the field of foreign policy and safety, justice and internal affairs, was.

In April, 2003 Ukraine took part as a full-fledged member in the work of European Conference in Athens, however this fact was not considered as the initial stage of entry of Ukraine to EU. Never the less our state does not renounce the idea of entering into EU and inculcates certain measures for this purpose.

Clearly, there are certain criteria of entering into EU which must be provided. They are the so-called Copenhagen criteria which were determined on the meeting of European Advice in Copenhagen in 1993: political, economic criterion and the criterion of membership.

A political criterion consists in stability of institutes, which are the guarantors of de- mocracy, supremacy of right, rights for a man, respect and defense of rights for minorities. An observance of political criterion is pre-condition for the beginning of negotiations about an association.

An economic criterion foresees existence of market economy, and also possibility to manage with competition pressure and market forces within the limits of EU; thus the pres- ence of constituent of «existence of market economy» must be provided before the beginning of negotiations, and majority of other in a medium-term prospect.

The criterion of membership is related to ability to fulfill the obligation of member- ship, including political aims observance, economic and currency union, thus this criterion is considered to be the most difficult to fulfill.

They often distinguish another criterion, so-called «independent» which foresees pos- sibility of EU to absorb new members, at the same time supporting the dynamics of European integration; that is to say it is necessary to provide, not weakening European integration by new country members.

Each of these criteria contains the number of sub criteria. Realizing importance of in- tegration prospects, Ukraine provided the certain list of entering criteria into EU, but there is a number of criteria which yet must be fulfilled. The positive and negative consequences of implementation of the criteria of membership for the state are illustrated by table.1.

Table 1. Advantages and disadvantages of Ukraine integration into EU

Advantage Disadvantages In a political sphere

1. Guarantee of political freedom; EU is a stable political formation, which in times of it’s existence accumulated experience of effective co-ordination of the state-members collaboration, and the creation of currency union strength- ens not only economic but also political integrity of EU

1. There is probability of replacement Ukrainian democracy by the same ineffec- tive «European democracy»

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2. Guarantee of democracy; one of the integration condition to EU is stability of institutes which guaran- tee democracy, supremacy of right, providing with defense of rights for a man and national minorities, implementation this criterion is the instrument for creation of democratic institutes in Ukraine

3. Guarantee of safety; EU and Ukraine shares a per- sonal interest in saving of stability in Europe, integra- tion of Ukraine to ES opens a way to more wide par- ticipating in the structures of international safety, pro- vides possibility of mutual actions in relation to con- trol export and non-proliferation of weapon of mass distraction.

2. The national and cultural uniqueness of Ukraine can be dissolved it could become an unnoticeable constituent of All-European unified cultural and civilized identity.

In an economic sphere 1. Macroeconomic stability; completion of budgetary

reform, providing with independence, creation of the system of effective supervision after a financial sec- tor will allow Ukraine to get around implementation of the noted condition making use of experience, finan- cial and technical help of EU

1. Separate industries of Ukrainian economy can suffer from putting European norms of economy adjusting into practice, first of all agriculture, food and light industry, etc. For example, grants European farmers get today scarcely will be foreseen in an analogical size for the Ukrainian agrarians, whose products can be in inadmissible for the mar- kets of EU

2. Increase of the productivity of economy; free movement of commodities, services and capital be- tween Ukraine and EU, Ukraine participation in the common European market will result in increasing of Ukrainian products competitiveness and of the Ukrainian products and productivity of manufacture;

free access must become the source of increase of the productivity to the capital and newest technologies, and the introduction of the EU standards in economic activity will stimulate the coming of direct invest- ments, which will have a positive influence on an in- ternal user market

3. An increase of trading volumes between Ukraine and EU; expansion of EU, increase of its population to 500 million users will result in creation of most user market in Europe; high solvency of EU users, the rapid rates of economic development steadily will promote the role of EU as an auction partner of Ukraine

2. Ukrainian commodity producers, giving free access to European commodity produc- ers could lose a part of their national market instead of getting possibility to gain Euro- pean markets due to the law competitivness.

4. A free movement of labour force within the limits of EU; integration to EU will be instrumental in an exchange experience and ability between the Ukrain- ian and European workers, labour productivity will grow a real wage will be increased in Ukraine

Source: own compilation.

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Table 2. Advantages and disadvantages of Ukraine integration into EU: social sphere In a social sphere

1. Defense of workers rights; in the process of integration Ukraine must join in with Charter of basic social rights of workers, which foresees a right on free employment, adequate payment of labor and public welfare guarantees, improvement of life and working condition, health protection and labor safety

1. Appearance on the Ukrainian market the commodities of other country members of EU on the Ukrainian market can result in general growth of internal prices. The population will be forced to buy the commodities for the prices, which exist in the country members of EU, while the level of profits of the Ukrain- ian citizens is considerably lower

2. Reform of social sphere; a cooperation with EU will be instrumental in successful reformation of the system of health protec- tion, education, culture, social defense and social security; it will approach them, to the European standards

2. To protect the territory of other EU coun- tries Ukraine can grow into a country-filter, where illegal migrant traffic and contraband products will be detained.

3. Protection of environment; a collaboration with EU in this sphere will result in preven- tion and fighting local and regional contami- nations and introduction of the European sys- tem of ecological examination of environ- ment in Ukraine

3. A level of social payments for not secured means layers of the Ukrainian population can be considerably cut down in accordance with norms and rules which exist in EU

Source: own compilation.

Conclusions

The prospects of approaching of any state to EU, including Ukraine, are determined, at firstly, by the political and economic state of the country which wishes to be integrated, sec- ondly, by the consequences of the regular expansion for the state members of EU and, thirdly, by the scale of adaptations which EU must carry out for, at least, saving the efficiency of process of making a decision. Modern weak Euro integration positions of Ukraine are the natural result of inconsistence and delay in caring out the reforms.

Successes of Ukrainian diplomacy and deserved recognition of positive role of Ukraine in support of regional safety appeared absolutely insufficient in order to compensate the shortage of successive structural reforms inside the country.

Any terms of implementation of membership criteria in EU can be real, if successive and intensive work are be conducted first of all in implementation of positions of Agreement about partnership and collaboration between Ukraine and EU and Plan of actions Ukraine – EU, concluded in February, 2005 for three years.

Thus it will be possible to speak about the concrete dates of Ukraine joining UE when the concrete result of the implementation of this documents will be attained.

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