In order to overcome macroeconomic risks and maintain macroeconomic stability, the partners of the Donor Coordination Platform and Ukraine need to develop a long-term, until 2027, plan for external financing and support in non-monetary form, which is the first priority of the economic policy of the Ministry of Economy and Finance of Ukraine.
“Although the reforms outlined in the Reform Matrix are necessary, they alone are not sufficient for faster economic recovery. Ukraine will need help from partners to implement additional measures both in the field of reforms and in other areas to realize its vision,” – indicated by the Ministry of Economy and the Ministry of Finance in the jointly prepared Report on the priorities of economic policy aimed at ensuring economic growth.
The second priority, they called promoting a faster recovery by eliminating the main constraints – ensuring air defense, meeting energy needs, ensuring stable and predictable access to foreign markets, overcoming labor shortages and restoring critical logistics (SEAL+).
In the opinion of the Ministry of Economy and the Ministry of Finance, market liberalization measures are necessary, determined in time and scope, as well as access to EU funds.
“In general, the logic of the accession negotiations should ensure that the Ukrainian economy and society feel tangible advantages “on the go”, even before the official accession to the European Union. Ukraine should strive for a quick and accelerated integration process,” the report states.
According to its authors, the third priority is to expand the potential for growth by supplementing the necessary structural reforms with commitments from investment partners and the transfer of technologies that will contribute to increased productivity and capital accumulation, with specific terms and volumes defined in time.
The Ministry of Economy and the Ministry of Finance noted that the Plan of Ukraine within the framework of the Ukraine Facility is a good example of such an approach, when the implementation of reforms and investment indicators of the Plan stimulates both external budgetary support and the inflow of financing and investments for the private sector.
“Supplementing such measures with an actual inflow of external financing and technology transfer through partnerships and joint ventures between Ukraine, the EU and the G7 countries will significantly improve the productivity of the economy,” the report says.
Its authors reminded that priority sectors of development, as stated in the Plan of Ukraine and at meetings of the Coordination Platform of donors, are energy, transport, agro-industrial complex, critical materials, and digital transformation.
At the same time, it is emphasized that although external donors will continue to be an important source of financing, there is a need for greater independence in the formation of tax and non-tax revenues to ensure budget financing in view of the continuing high needs related to defense.
“We have begun the preparation of the Budget Declaration for 2025-27, which will be the basis for the preparation of the budget for 2025. We are committed to raising adequate additional revenues to meet future defense-related needs and to implement reforms that increase the efficiency of non-defense spending , including those that strengthen the effectiveness of the social protection system, increase the effectiveness of the education system, and mitigate fiscal risks in the pension system,” the report states.
Its authors declare that Ukraine will continue to take measures to reduce non-taxable activities in the significant shadow economy, as well as focus on measures aimed at increasing budget revenues and reducing corruption threats in the field of customs administration.
