Warm reception in brussels

Published in Inform issue #75
See the full issue here.

Prime Minister Yulia Tymoshenko received a warm and sympathetic reception from European leaders and EU officials during her visit to Brussels last week.

Whilst in the Belgian capital, the premier met with Javier Solana, Secretary General of the Council of the European Union, High Representative for Common Foreign and Security Policy. Although concerned by the political turmoil in Ukraine, Mr Solano praised the efforts of Ms Tymoshenko’s government in tackling inflation.

According to Mr Solana, Ukraine’s economic policy was moving extremely positively and the country displaying strong economic growth, while inflation was coming under control.

Mr Solano expressed his desire to see greater political stability which he believes will further improve the economic situation.

In response, Ms Tymoshenko said, "Ukraine has excellent potential and is developing positively.” Recognising the need for greater political unity with President Viktor Yushchenko, she said, “from my side as head of the government, I will do my best to work in this direction."

Ms Tymoshenko reiterated the importance of controlling inflation and said that the economy would benefit from a bumper harvest this year. High food prices have had a significant impact on inflation as more than 50 percent of Ukraine’s consumer price index is related to food staples.

The 2008 harvest is expected to be twice that of 2007, due in part to better financing of the agricultural sector – by 40 percent this year – and improved management and practices. Ms Tymoshenko told European leaders of her desire for Ukraine to regain its status as the breadbasket of Europe.

Vice President of the European Commission, Günter Verheugen, said, “I admit that Ms Tymoshenko has achieved significant progress from the point of view of Ukraine’s economic development.” He noted and welcomed the planned structural reforms to bring Ukraine in line with European principles and underlined the EU’s commitment to a comprehensive free trade agreement. “We will deepen our cooperation for the strengthening of European prospects in Ukraine,” he said.

Mr Verheugen also endorsed Ukraine joining the European Charter for small enterprises, expressing a desire for closer collaboration in this area.

“This was a fruitful visit,” said Hryhoriy Nemyria, Deputy Prime Minister responsible for European Integration. “Although our EU partners are rightly concerned about the volatility of domestic politics in Ukraine, there is a general consensus on economic progress and closer links.”

In September, French President Nicolas Sarkozy will host an EU-Ukraine summit which is expected to bring about closer ties and edge Ukraine nearer to its long-term goal of EU membership.

Membership No Time Soon

“We must be realistic, EU membership is a long-term goal for us,” said Mr Nemyria, “first we must align our institutions, structures and regulations with European norms and this will take time. But we are making real progress and taking those first steps. We have the mandate from the people to do this and our course is irreversible.”

Although Ukraine hopes one day to become a full-member of the EU, much will depend on the pace of its reform programme and the willingness of member states to expand the boundaries of the 27-member state bloc. The EU boasts nearly 500 million citizens and 30 percent of the world’s nominal GDP.

Support from the European People’s Party

One of the main reasons for the Brussels visit was for Ms Tymoshenko to attend a meeting of the leaders of the European People’s Party (EPP). The centre-right party is the largest European-level party on the continent with 74 member parties from 38 countries.

The EPP leaders agreed that the EU should continue the ratification of the Lisbon Treaty and expressed support for the process of accession for Croatia.

Also on the agenda was the issue of rising fuel and food prices. Ms Tymoshenko said that she saw a significant role for Ukraine to play in helping to ease the international food crisis; noting that this year’s expected bumper grain harvest would enable Ukraine to increase exports to European countries.

In return, President of the EPP, Wilfried Martens, said that he backed the reforms of the Ukrainian government and, notably, its measures to curb inflation.

"On behalf of the EPP I would like to state our solidarity with the course undertaken by the Tymoshenko-government, its anti-corruption and privatisation programme. I would also like to support Ms Tymoshenko as the leader of the democratic coalition. We remain perturbed that there are attacks on the government and at the same time these attempt to block the course of reform," said Mr Martens.

According to a report in Ukrayinska Pravda, "The EPP openly stands on Tymoshenko's side in the current conflict."

“President Yushchenko's policy of attacking the orange coalition and Tymoshenko-government is having an impact internationally,” commented Dr Taras Kuzio, Research Associate at the Institute for European, Russian and Eurasian Studies, George Washington University and editor of Ukraine Analyst. “Yushchenko is fast losing support in Brussels, London and Washington for the very same reasons he is losing support among Ukrainians; namely, in response to his duplicity in claiming to support "his government" while doing everything in his power to undermine it,” he said.

The EPP meeting attracted 15 heads of government. Taking advantage of the gathering, Ms Tymoshenko took the opportunity to meet with Fredrik Reinfeldt, Prime Minister of Sweden, Ives Leterme, Prime Minister of Belgium and Silvio Berlusconi, the Prime Minister of Italy.