A Hundred Days of Government: the Way Towards Stabilization
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A Hundred Days of Government: The Way towards Stabilization Kyiv March 2015 Prime Minister of Ukraine Arseniy YATSENYUK The Government assumed the political responsibility for the state of affairs within the country and agreed to take actions that hadn’t been done throughout recent 20 years. It is our mission, that’s our objective and we are doing it. I realize how hard it is now for the majority of the Ukrainians and for the entire country. Russian military aggression, the war, incredible losses of the economy cost each Ukrainian a fortune. It is just difficult to compare which countries had gone through similar tests. We have embarked on these complex reforms that aren’t always perceived positively among Ukrainians at the present stage. But I am asking all of you to understand - without today’s reforms we will not have our tomorrow. Our Government struggles neither for the approval ratings, nor for its popularity, as these reforms in the short term do not add any political advantages. We know what we agreed to. We agreed to make these steps to have our tomorrow. Among the opponents to our reforms are Vladimir Putin, the Opposition Bloc who led the country into bankruptcy we are trying to lead out of, and a group of politicians who want to get cheap political gains in the country in a state of war. What has been done by the current Government is endorsed by G7 states, our American and European partners. And they are helping the country to find the way out of this very difficult situation. But I want to assure you that we will cope with this situation. I want to ask for one thing - patience, understanding and unity. Let’s think not about ourselves, but about our children and next generations. And how to pull the country out of this abyss. There is no another recipe. Vice Prime Minister of Ukraine Valerii VOSHCHEVSKII Oleh Lyashko’s Radical Party faction What has been done Maintained efficient activity of Crisis Energy Headquarters that has facilitated, under conditions of military aggression and restricted access to energy carriers, to preserve energy system of Ukraine and successfully endure the heating season. Participated in drafting laws called to promote deregulation issues, improve the quality of public services, increase transparency of public procurement. Current objectives Complete the reform of the environmental system, state-owned enterprises in the transport sector, road economy, communications and mining. Introduce competitive and transparent working conditions in these industries basing on the principles of a state-private partnership. Create a national market of emission trading, introduce a system of effective use of green investment instruments. Elaborate in the framework of the Crisis Energy Headquarters of the National Response Plan for Emergency Situations in the fuel and energy complex in autumn and winter 2015-2016. Vice Prime Minister of Ukraine Culture Minister of Ukraine Viacheslav KYRYLENKO People’s Front Party faction What has been done Extended tax incentives for national publishers. Launched the Weapon of Culture project- the Ministry, artists and volunteers jointly organise cultural events and movie demonstration in the ATO area and the adjacent areas. Established support centres for IDPs on the basis of libraries. Employed teachers and displaced students from educational and cultural institutions from the temporarily occupied territories. Elaborated new legislative mechanisms of the state support of the national film and television production. Launched introduction of the electronic system to monitor public library activities. Pioneered the law to protect the expenditures for protection of the state-owned and municipal museums, preserves and other cultural institutions. Current objectives Approve the Culture Reform Strategy. Protect the national cultural product by the peculiar law. Create the legislative framework to increase the share of Ukrainian product in television and radio air. Launch comprehensive measures to develop the national cinema. Reform of monument preservation legislation to ensure decentralization and deregulation processes. Vice Prime Minister of Ukraine Minister of Regional Development, Building, Housing and Utilities Hennadii ZUBKO Petro Poroshenko Bloc faction What has been done Transferred powers and resources to the local level after drafting and adopting of relevant laws. As a result, local communities obtain additional resource worth over UAH 26 billion. Launched decentralization in architectural and construction control area, simplified the licensing and clearance process in the construction area. Simplified mechanisms for the redesigning and rebuilding of residential flats. Attracted investment funds for the rehabilitation of Donbas and maintained solving the problems of the internally displaced persons. Launched activities on amending the Constitution in terms of decentralization. Current objectives Prolong decentralization processes – achieve maximum transfer of functions to local communities. Prolong activities in the area of the licensing and clearance process in the construction area. Harmonize the basic requirements for buildings and structures with the EU law. Simplify the conditions for competitiveness of the construction products on the market. Create favourable investment climate to ensure development of territories through the development of urban planning documentation. Planned gradual reduction of tariffs to achieve an economically justified level. Improve energy efficiency, energy conservation and alternative energy development in utilities sector. Minister of Finance of Ukraine YARESKO Natalia Ann Self Reliance Political Party faction What has been done Made important steps towards stabilization of the financial system of the country and the decentralization of the system of interbudgetary relations. In particular, facilitated approval of the state budget that affords to reduce the deficit of the general public sector management; reaching an agreement on granting a large-scale international financial assistance from the IMF and other partners of Ukraine. Reduced the burden on inflation by reducing deficits of NJSC Naftogaz of Ukraine and the Pension Fund. Reduced single social tax to ensure legalization of wages. Expanded the tax basis at the account of the fight against the shadow economy, in particular against tax pits, as well as through increased taxation of the rich persons, the introduction of electronic administration of the VAT. Legislative changes initiated by the Ministry were highly evaluated by Finance Ministers of G7 states. Current objectives Reduce the state budget deficit. Hold consultation with the holders of sovereign debt of the country aimed at the reduction of the debt burden on the state budget in the coming years. Create proper conditions for Ukraine to return to foreign markets. Improve tax legislation: reinforce the tax policy and the process of tax administration as well. Prolong upgrading the presentation of the Ministry of Finance, which has to become a true European Ministry taking into account standards and the quality of work. Minister of Economic Development and Trade of Ukraine Aivaras ABROMAVICIUS Petro Poroshenko Bloc faction What has been done Cancelled 16 regulatory restrictions, 26 kinds of activities do not require licensing anymore. The deadline for obtaining certificates in agriculture reduced, as well as ineffective expertise and monitoring. The mentioned changes are called to simplify the business environment, reduce corruption, attract investment and provide additional economic effect worth about UAH 60-90 billion for the coming five years. Conducted reorganization of the Ministry, reduced the number of departments, while the staff will be reduced by 30% in the near future and by 20% more in autumn. Initiated the publication of financial statements of public companies and a new transparent procedure for the appointment of their chiefs. Now General Director position in state-owned companies is an open selective process and the subject to evaluation by independent experts. Current objectives Continue preparation for the second deregulation stage - the so-called «guillotine»: regulatory authorities should prove their advantages or will be liquidated. Continue removing excessive regulatory barriers to improve the investment climate. Prolong harmonization of the Ukrainian system of standardization and technical regulation with the European standards, thus simplifying export our products to EU markets. We have embarked on reforming the public procurement system to make them fair and competitive. Minister of Social Policy of Ukraine Pavlo ROZENKO Petro Poroshenko Bloc faction What has been done Ensured social fairness principle in the assigning and receiving pensions: introduced taxation of large pensions and limited special pensions for MPs, judges, prosecutors, etc. Created necessary preconditions to transfer to a targeted system of benefit provision, in particular, assigned monthly payment worth UAH 250 for children under 3 from low- income families. Launched the process of joining funds for temporary disability and accidents at work, thus allowing to save about UAH 3 billion and direct these funds to strengthen the social protection of the insured persons. Implemented a subsidy reform, which will be in effect from May: simplified the process of their clearance, eliminated the unfair restrictions and artificial criteria, increased expenses up to UAH 25 billion to provide housing subsidies. Launched new programs