UKRAINE’S ACCESSION TO THE EU – THE SPECIAL CHALLENGES FOR REFORMING UKRAINE’S ECONOMY

Abstract

How important is the European Union for Ukraine and what crucial challenges and tasks arise forUkraine’seconomy?The aim of the article is to provide description of tasks on reformationofUkraine’seconomytaking its course on integration in the EU.
The first task is modernization of economy and change of the production structure that meet European requirements. To accomplish this it is necessary to make an inventory of all productions and determine those productions, that are already capableof competing on markets of European countries.
The second one isbuilding the infrastructure what would satisfy EU interests, creatinga new system of the housing and communal services sector on the whole. For this purpose the metropolises of Ukraine must get from the European Bank for Reconstruction and Development credits on the new water system.
The third the task, the most essential one, is building roads and equipping streets in cities with modern amenities. To fulfill this task 50% of roads are to be given in a concession, while equipping with modern amenities should be conducted due totax preferencesgiven for businessentities. Development of basic industries - metallurgical, coal and chemical industry. We must set upbranch offices of mechanical engineering of famous brands all over Ukraine. Filling these orders will be extremely mutually beneficial, and will especially contribute to armament of Ukrainianmilitaryin compliance with NATO requirements. Ukraine has potential for this. To stimulate development of tourism in Ukraine. Research institutes on the study of historical heritage must present their researches where certain historical locations attractive for touristswill be determined.
Development of agricultural production for Ukraine is an essential direction. It is necessary to shift to production of agricultural goods in compliance with EU standards. In the meantime, the agricultural market of the EU is highly saturated, therefore Ukraine needsa strategy concerning production of grain, sugar, flax and implementation of their newest production technologies. Regarding the agricultural production of animal origin, this way is a bit longer, and the state must constantly keepit under control, prioritizingits development.