The Ukrainian sectors that are the most integrated with EU rules are financial services, telecommunications, postal and courier services, energy, and public procurement. The progress in these areas was reported by the participants of the discussion, which was devoted to the presentation of the study “Ukraine’s Integration into the EU Internal Market: Impartial Assessment and Dialogue with Stakeholders”, conducted by the IER.
Ukraine has already fulfilled most of its obligations in these areas both in the context of the Association Agreement and in the context of the start of negotiations on Ukraine’s accession to the EU.
“The financial sector is almost fully harmonized with European standards. In telecommunications, we are moving towards digital visa-free travel. Postal and courier services are almost in line with EU directives. In the energy sector, we are already integrated into the European electricity and gas market, while further liberalization is still needed. And in the area of public procurement, the draft law needs to be finalized in accordance with EU norms,” said Iryna Kosse, a leading researcher at the IER.
The EU representative confirmed Ukraine’s limited progress. “We are screening Ukrainian legislation on services. And despite the difficult conditions in recent years, Ukraine has actually shown some limited progress in this area and has been moving towards the EU “framework” EU framework for services, in particular, we have seen progress in postal services,” said Janis Aizalnieks, Head of the European Commission’s Social and Economic Policy Team.
During the event, the participants discussed four key topics of this study: customs, recognition of professional qualifications, financial and digital services.
The IER presents the main recommendations in each of these areas.
Simplification of customs procedures
The European Union has recognized the significant progress made by Ukraine. Ukraine has criminalized the smuggling of large volumes of goods, approved the National Revenue Strategy until 2030, adopted the law on customs reboot, and started applying NCTS Phase 5.
Further, Ukraine should, in particular, move to NCTS Phase 6, make progress in the use of AEO, improve the administrative capacity of the State Customs Service, and update the Customs Code in line with EU rules.
Recognition of qualifications
Recognition of Ukrainian qualifications in the EU is an important element of Ukraine’s European integration, covering educational, professional and labor aspects. This will make it easier for Ukrainians to find employment in the EU market, recognize the experience and qualifications gained in Ukraine, and increase career opportunities.
On the way to this goal, the National Qualifications Framework was approved, qualification centers were established, a number of professional standards were adopted, and Europass and Euroguidance were introduced.
It will still be necessary to adopt a law on the National Qualifications System in line with EU law, harmonize the national and European qualifications frameworks, finalize the development of standards for all regulated professions, expand the network of qualification centers and their monitoring, etc.
Digital services
The area includes six key areas: electronic communications, electronic identification, cybersecurity, personal data protection, digital markets and services, artificial intelligence, and digital transformation.
Ukraine has already made significant progress, becoming the first non-EU member state on the EU’s trusted list for electronic signatures. Laws on media, digital content, services, and affordable roaming with the EU have been adopted.
It will still be necessary to finalize the law on personal data protection, harmonize legislation with the AI Act, prepare for the introduction of 5G, complete integration into the EU’s single roaming area, and update cybersecurity legislation.
Financial services
Ukraine has adopted amendments to the Law on Banks and Banking, a new Law on Insurance, and a number of laws in the area of capital markets. Now, it is necessary to ensure the institutional capacity of the NSSMC for capital markets and to continue implementing the requirements of the Basel III package for the banking market.
Ukraine has adopted amendments to the Law on Banks and Banking, a new Law on Insurance, and a number of laws in the area of capital markets. Now, it is necessary to ensure the institutional capacity of the NSSMC for capital markets and to continue implementing the requirements of the Basel III package for the banking market.
Granting the financial services sector internal market treatment does not require unanimous approval by all EU members. Therefore, the integration of the financial services market into the EU market may take place significantly earlier than Ukraine’s accession to the EU. Under certain conditions, the financial services market could become a pilot sector for sectoral integration of Ukraine’s economy into the EU’s Common Market.
“Ukraine has been following the recommendations we provided a year ago, so we are moving faster in financial services. This is one of the areas where we could talk about the internal market,” said Janis Aizalnieks. ”In the near future, when Ukraine connects to SEPA, the fast payment mechanism between the EU and Ukrainian banks, it will give confidence to consumers.
The event was organized with the support of the European Union and the International Renaissance Foundation within the framework of the joint initiative “European Renaissance of Ukraine”.
The text of the document is available here
Source: IER
