BRUSSELS, Belgium (AP) – Ukraine’s new prime minister said Oct. 6 that his new government would make his country’s economy more competitive and transparent, and promised not to re-privatize any businesses.
“We will offer clear, responsible and equal rules of play to the businesses in Ukraine’s market, based upon securing the principles of market competition and private property rights,” Yuriy Yekhanurov said. “We have put an end to all speculation about re-privatization in the Ukraine.”
Last month, President Viktor Yushchenko fired the previous premier, Yulia Tymoshenko, who had been a Yushchenko ally during his presidential campaign.
Tymoshenko’s Cabinet was popular, but critics complained its populist moves hurt the economy, scared away investors and did little to live up to EU reform demands. Tymoshenko launched a far-ranging re-privatization program that Yushchenko has since canceled.
Yekhanurov, an economist, has challenged his new Cabinet to make boosting Ukraine’s economic performance a priority. He made his comments at a conference on Ukraine ahead of his first visit to EU headquarters, where he is expected to seek support for his country’s reform agenda in meetings with European Commission President Jose Manuel Barroso and with EU foreign policy chief Javier Solana.
“The Ukrainian economy seems to be losing pace,” Yekhanurov said, appealing to investors to bring in more money to Ukraine. “The economic imbalances resulting from excessive desire to resolve social problems are becoming more apparent.”
He added that the competitiveness of Ukraine’s economy has decreased by 16 percent since the beginning of the year and that is “a disturbing signal.”
Yekhanurov’s Cabinet, however, must first tackle corruption to lure investments, said Siim Kallas, the European Commission’s vice president in charge of administration.
“Investors like transparency,” he told the conference.
Ukraine is keen to build its ties with the EU, and Yushchenko has already called for the EU to consider his demands that Ukraine be given the option to join.
Staying the course on reforms would be welcomed in Brussels, officials said, and may encourage the EU to grant Ukraine coveted market economy status ahead of a Dec. 1 EU-Ukraine summit in Kyiv.
Recognition as a market economy is largely symbolic. But it would give Ukraine added protection against possible charges of breaking global trade law on antidumping. Economic reforms may also qualify Ukraine for more financial and economic assistance from the EU.
Ukraine is also keen to join the World Trade Organization later this year.
Its membership in the WTO is seen as an important short-term goal for this ex-Soviet republic of 47 million, which needs major foreign investments to boost production and improve living standards.
“We hope Ukraine will be able to join by the end of the year,” Kallas said. “This will have (a) huge repercussion for its economy.”
