EU Enlargement: Good News for Ukraine

The enlargement of the European Union on May 1, 2004, with ten new members, most of them in Central Europe, will have a profound impact, both on the Union itself and on the Union's relations with its neighbours and the world. Panorama talks to Steffen Skovmand, Acting Head of the Delegation of the European Commission to Ukraine, Moldova and Belarus, about a new framework for EU-Ukraine relations.

In his inaugural speech on November 30, 1999, Ukraine's newly-reelected president Leonid Kuchma announced, reaffirming our European choice, we define joining the European Union as our strategic goal. As a result of the accession of ten Central and Eastern European countries to the EU on May 1, 2004, Ukraine will get another chance to foster her EU aspirations by finding herself on the very doorstep of Europe.

Panorama: Mr. Skovmand, what new opportunities in various fields of Ukraine-EU cooperation does EU enlargement open up?

Steffen Skovmand: We can speak of several categories of opportunities. The first one is economic. Ukraine will become a direct neighbour to the world's biggest single market of almost half a billion consumers. Because the majority of acceding countries are traditional trade and economic partners for Ukraine, after their accession, they will want to continue buying products from Ukraine, and once these products are inside the EU, they can circulate freely. Thus, Ukraine will benefit from a single set of trade rules, a single tariff, and a single set of administrative procedures. By way of example, tariffs on Ukrainian exports into the EU will go from 9 percent to 4 percent on average, which in dollar or euro terms will mean a lot to the Ukrainian economy. And this is only one example of several benefits that will follow from enlargement. The second category is political. Politically, it is clear that the new member states will bring an increased support for closer relations between Ukraine and the EU for the simple reasons that, firstly, many Ukrainian citizens now live across the border, and secondly, these countries have traditionally traded with Ukraine and will want to continue to do so. They don't want a disruption any more than Ukraine does. And we also feel it is important that enlargement does not draw new dividing lines in Europe. So both politically and economically, we think that the enlargement represents a hugely important asset for Ukraine.

Panorama: The EU believes that the positive impact of the enlargement on current and future Member States and on neighbouring countries will be considerable. At the same time, the new opportunities brought by enlargement will be considerable. At the same time, the new opportunities brought by enlargement will be accompanied by new challenges. What steps are being undertaken to deal with these challenges?

Steffen Skovmand: Technically speaking, there are two main policy papers from the Commission to deal with problems that might follow after enlargement. On March 11, 2003, the EU Commission adopted a new framework for its relations with the EU's future neighbours, including Ukraine, called Wider Europe (WE). This programme does not talk about Ukraine's access to the single market to enjoy the four freedoms of free movement of goods, capital, service and people within the single market, provided that Ukraine fulfils certain conditions.

And then there was a communication from the Commission in July 2003 called Paving the Way for a New Neighbourhood Instrument, which is a practical implementation of the WE. This document specifies four main areas where the EU will invest money. These are promoting economic and social development in the border areas, addressing common challenges in fields such as the environment, public health and organised crime, ensuring efficient and secure border management and finally, the enhancement of the long-standing cultural links across these borders, by means of student exchanges and promotion of people-to-people contacts.

Panorama: What ideas does this programme outline for EU relations with its neighbour Ukraine, and how are they being implemented?

Steffen Skovmand: In May this year, the Commission will publish a strategy paper for all the countries concerned by WE. It will publish a country report on Ukraine, and later an Action Plan (AP) will be jointly elaborated by the EU and Ukraine. Ukraine's importance is clear from the fact that not all WE countries get a country report and an AP. This alone is a testimony to the fact that is a very important part of WE. The AP will lay down short- and medium-term priorities and goals. In general, Ukraine's progress towards meeting its commitments towards the EU will be judged upon the fulfilment of the AP.

These two European neighbourhood programmes will be in the effect from 2004 to 2006. The EU is already Ukraine's largest donor: over the last 10 years, total assistance amounted to 1.072 billion euros. The National Indicative Programme for the years 2004-2006 foresees 212 million euros of further assistance. After 2006, there will be new funds within the context of WE. We will have to change the instrument called TACIS (Technical Assistance to CIS) in order to be able to give more qualified, better-structured aid to the WE countries. All this testifies to the seriousness with which the EU treats Ukraine in the European neighbourhood policy.

Panorama: When visiting Kyiv in 2001, the EU's High Commissioner for Common Foreign and Security Policy, Javier Solana, announced that Brussels was satisfied with Ukraine's pursuit of reform, but that there was a long road ahead. What more can Ukraine do to make its European aspirations a reality?

Steffen Skovmand: Ukraine has already made huge progress and is not the country it used to be some 10 years ago. However, there are still a number of areas where Ukraine has to undertake the indispensable steps to realize its intention of joining the EU. First of all, Ukrainian legislation should be brought to conformity with European standards. Politically speaking, constitutional reforms and reforms in human rights should be continued and accelerated. And of course, the upcoming presidential elections have to be free and transparent. There are many other topics of current interest and importance.

Panorama: What is the Delegation's role in promoting and fostering Ukraine-EU partnership?

Steffen Skovmand: The Delegation's strategy for Ukraine for promoting reforms, investments and trade and eliminating social consequences of transition remains the main point. However, because of the enlargement and the introduction of WE, the coming two years are the beginning of a very important development for Ukraine. The idea of these programmes is that they are managed by people on both sides of the border. Last year we organised a series of visits to different areas of Ukraine to get the local authorities in the discussions so that they are prepared to implement these programmes and help us in the decision-making process.

Panorama: Last year the Delegation of the European Commission marked 10 years in Ukraine. Among other things, its activities include promoting the EU to the Ukrainian people. Europe Day enjoyed a huge success last year. What are the plans as regards Europe Day 2004?

Steffen Skovmand: This year the celebrations will be extended to other cities in Ukraine. On May 15, the event will take place in Kyiv, on the 18^th in Dnipropetrovsk and on the 20^th in Lviv. Like last year, the European village will be situated in the central streets to give visitors a taste of Europe and show its diversity. All 25 Member States will provide information about their countries, national entertainment, music, shows, food and games. Evening concerts will feature performances from popular Ukrainian and European bands. With Europe Day in full swing for the second year in a row, it is clear that the Delegation's involvement in Ukraine will continue to grow.

Panorama 4/2004 (p. 42-45)