Ukraine Expects the EU Support for Economic and Social Reforms at the Upcoming Summit

KIEV, Ukraine, November 19, 2010 /PRNewswire/ -- The Ukrainian Ministry of Foreign Affairs relies on the EU support for the ongoing reforms in Ukraine. According to Oleg Voloshyn, Head of Information Department at the Ukrainian MFA, the upcoming EU-Ukraine summit in Brussels will be the first bilateral summit, when Ukraine can demonstrate a real progress on the path of economic and social reforms.

Among some of the reforms in question are the tax and pension reforms as well as the recent liberalization of the domestic gas market.

The tax code, which is being debated nowadays, is aimed at simplifying the Ukrainian tax system, which is now one of the most complicated in the world. According to the proposed draft law, the number of taxes should decrease from 29 to 17. The bureaucratic procedures of tax administration will also be significantly eased. On top of that, a gradual reduction of the main taxes will be introduced in 2011-2014.

With respect to the pension reform, the government is set to implement a number of measures in order to bring the Ukrainian pension system closer to European standards. In addition, a number of non-popular but crucially needed steps are to be taken in the upcoming months. The rise of the retirement age, which many EU countries also have hard time introducing, along with other financial restrictions, will stabilize the pension fund and will bring more transparency into the Ukrainian pension system.

The adoption of the new gas reform law in July 2010 brought drastic changes into the local gas market. According to the law, which fully complies with the provisions of the Brussels Declaration of March 2009, foreign companies may now have access to Ukrainian gas storage and pipelines based on market competition. The law was brought into life following the EU suggestions.

Based on the above mentioned developments as well as the ongoing consultations with the EU authorities, the Ukrainian leadership also expects a breakthrough on the long-awaited issues: approval of the Visa-Free Action Plan and a progress in Association agreement.

SOURCE Worldwide News Ukraine