The American presidential elections and upcoming elections in Germany, France and the Netherlands are reshaping the landscape of global policy, as well as reducing attention to Ukraine.
The only possibility to become a strong country is to systemically conduct comprehensive political, economic and social reforms that bring the country closer to the developed world and ensure better economic growth and prosperity.
In that regard, the association agreement between Ukraine and the European Union is the the most suitable roadmap for moving successful along the European path.
Our international partners will be busy with their domestic problems and a corrupt Ukraine that does not implement reforms will not be of interest for them. But Ukraine already has a lot of success stories about reform.
For example, we can be proud for not only of reform in public procurement, but also transport, food safety (vital for agrarian export), environmental, public health and many other that are defined by the association agreement.
According to the research conducted by the think tank Ukraine Center for European Policy, by the end of 2016 Ukraine had fulfilled about 25 percent of the obligations according the association agreement.
Only eight of the 44 commitments have been implemented. We understand they are only the first steps of agreement’s implementation, but we should make the process of EU legislation approximation more efficient.
In this article we analyze which spheres are the most successful and where the process of implementation was delayed.
Under the terms defined in the agreement for the period of July 1, 2016 – Nov. 1, 2016, Ukraine had to adapt 44 EU legal acts in the following sectors: energy, environment, public health, social policy, company law, taxation and public procurement, most of which belonged to the sectors of energy and environment.
Public procurement, energy sector
Public procurement and energy have become the most successful in reforms, demonstrating systematic work aimed at aligning Ukrainian legislation with EU law.
Public procurement. The team of the Ministry of Economic Development and Trade of Ukraine has showed the best results, having taken all the steps related to the approximation and implementation provided for in the association agreement with the deadline of Nov. 1. In particular, a basic policy document “public procurement roadmap,” was adopted, having set the requirements for the conclusion of procurement agreements and ensured institutional distribution of powers between the ministry nd the Anti-Monopoly Committee of Ukraine. The ministry shall determine the governmental policy in public procurement, while the committee shall review the customers’ decisions.
Energy sector. Activity of the State Agency for Energy Efficiency and Energy Saving and the Economy Ministry relating to the reform of the national technical standards has allowed Ukraine to launch a national system of energy labeling of energy-related products which fully meets the requirements of the new Directive 2010/30/EU. As of Nov. 1, Ukraine adopted the framework legislation and four technical regulations on labeling for refrigerators, washing machines, dishwashers and electric lamps and illumination devices, which have been fully incorporated into the practice of manufacturing companies, importers and public authorities. To complete this reform, it is necessary to adopt other regulations as soon as possible, and implement the requirements of this directive as to the state’s ability to control the accuracy of the information on energy labeling.
The requirement to meet new, more stringent EU standards on nuclear safety was initiated by the State Nuclear Regulatory Inspectorate of Ukraine to improve the safety standards of nuclear installations, protection against ionizing radiation, and the transportation of radioactive waste and spent nuclear fuel. Most subordinate acts of the inspectorate have been adopted. However, some important institutional changes, such as regulatory reform in the field of nuclear energy, have, unfortunately, been blocked due to unsatisfactory parliamentary ctivity and a delay in the approval of the draft regulations on the level of the Cabinet of Ministers.
Relative success in taxation
Approximation to the requirements of two EU directives regulating codification and collection of excise duty has almost been completed and incorporated into the practice of the State Fiscal Service of Ukraine. To fully accomplish it, it is necessary to unify the list of excisable goods in accordance with the EU requirements and harmonize the structure and the rates of excise duty levied on tobacco products with the EU requirements. Which sectors are stuck?
Company law. The reform of the law regulating company law in line with the EU standards is being implemented with varying degrees of success. Opening of the Unified State Register of Enterprises and Organizations of Ukraine can be considered as a positive accomplishment, yet the access to the companies’ registration cases has not been granted. Information about the branches of foreign companies working in Ukraine is not open either. The relevant EU standards are being implemented in the sphere of corporate governance, while the international financial reporting standards are used in a somewhat narrower scope than provided for in Regulation (EC) No. 1606/2002.
Public health. Effective legislation in the field of transplantation of tissues, cells and organs only partially meets the requirements of the EU directives which should have been implemented by Nov. 1. In particular, when it comes to the permission for transplantation, the right to use a full range of anatomical materials in clinical practice is provided, while the standards of confidentiality, proper quality system and standards of tissues and cells preparation do not meet the relevant European regulations yet. To harmonize the national legislation in the field of transplantation with the requirements of the EU directives, it is necessary to adopt the draft law No. 2386-1 “On amendments to certain legislative acts of Ukraine on healthcare and transplantation of organs and other human anatomic materials” which should fulfill most of the requirements of the European directives.
As to the regulation of tobacco, approximation of the Ukrainian legislation to the European standards have been delayed over the past year. The Verkhovna Rada is yet to consider two draft laws No. 2430-1 (based on the old directive No. 2001/37/EC) and No. 2820 (based on the new directive No. 2014/40/EC). However, after a long debate on which draft law should be adopted – the one based on the new directive or that on the old – the process of approximation in this field has actually been suspended.
Social policy. Approximation of the Ukrainian laws to the EU regulations on the job safety at the mining enterprises is on the preparatory stage and violates the deadlines set by the association agreement. To complete this process, it is necessary to adopt two orders of the Ministry of Social Policy of Ukraine setting minimum requirements for job safety and health protection of the employees of the mining enterprises. They have not been made public so far.
Weak progress in environmental protection
The commitments in this sector are being implemented rather slowly, given a large number of obligations. In addition, the environment is not a priority in the national agenda of the reforms.
The Ministry of Ecology and Natural Resources of Ukraine has made a good attempt to start adapting the national legislation to the European standards of the development of basic, systemic laws such as “On the strategic environmental assessment” and “On the environmental impact assessment.” However, due to a conflict between the main stakeholders and poor awareness campaign of the social and environmental importance of these draft laws, they were vetoed by the President.
The legislation necessary to adapt to the norms of the EU Water Framework Directive has also been adopted. As for the other changes, relevant draft laws are being developed. Implementation of the requirements of the Directives on the protection of habitats, protection of birds, control of volatile compounds emissions, the marine environment, and carbon emissions trading has not even started yet.
How to overcame key obstacles?
One of the weakest links in the process of the European integration is Parliament. Most draft laws to be adopted are blocked in the process of consideration and voting. This is due to poor motivation of MPs and their lack of understanding of the importance of the European legislation, as well as unpopular and often quite stringent EU requirements to the approximation of the national legislation.
Another significant problem is poor capabilities of the staff of the public authorities to develop quality projects such acts and complicated procedure of considering the draft laws at the level of the Cabinet of Ministers, when approval of an act can take years.
Recommendations
Taking into account the extremely slow adaptation to EU standards, it is necessary to develop and introduce a mechanism to adopt the draft legislation related to association agreement implementation by fast-track procedure. For example, parliament could schedule a specific time for the European integration draft laws during every session day or develop a fast track procedure for the Cabinet of Ministers of Ukraine to consider the European integration draft laws.
Dmytro Naumenko is a senior analyst of Ukrainian Center for European Policy. Liubov Akulenko is executive director Ukrainian Center for European Policy.
