Ambitions and dangerous illusions

EU Commissioner for Enlargement and European Neighborhood Policy, Stefan FUELE visited Ukraine and took part in the 6th annual conference Yalta European Strategy (YES) on October 1-2. On the eve of this event he courteously granted an exclusive interview to The Day.

Fuele had this to say about the YES conference:

“My main messages concern the European Union’s offer to deepen its relationship with Ukraine and its readiness to continue to support Ukraine in implementing necessary reforms.

“We welcome President Yanu­kovych’s repeated statements that European integration is a strategic priority for Ukraine. At the same time, President Yanu­ko­vych appreciated that coming closer to the EU involves implementing an ambitious reform agenda. These reforms are necessary not to satisfy the demands of the EU but rather to guarantee Ukraine’s further democratic and economic development and thereby long-term stability and prosperity in your country.”

What do you think of the role of Ukrainian oligarchs, who own almost all TV channels, in promoting Ukraine’s EU integration and, particularly, in spreading European values and standards?

“The existence of a free and pluralist media is essential in any society. It is the best guarantee of public accountability. It also has critical role in ensuring that a society remains dynamic, responsive to new challenges, and innovative.“

It would be interesting to hear your opinion on how Ukraine is fulfilling the Copenhagen criteria, which demand that the state should have institutes that ensure democratic governance and human rights, a functioning market economy, and shares EU duties and goals. Can you say in which of the aforesaid fields Ukraine has made progress and whether there are alarming signals that some areas are showing dangerous trends, a rollback of sorts?

“The relationship between the EU and Ukraine is based upon a set of common values. These include respect for human rights, democratic principles and the rule of law and market economic principles. These are critical issues for Ukraine’s future development. If you want to see that your children enjoy the benefits of a prosperous and stable society, it is essential that the conditions exist which can help promote innovation; attract inward investment and promote competitiveness. I believe this happens best in societies where human rights, democratic principles and the rule of law are respected and where there is a competition of ideas facilitated by a free media and an open political culture. In all these fields, there is work in progress in Ukraine and we stand ready to help the reform efforts of both the authorities, and civil society at large.”

By the way, do you share the opinion of some European MPs that the current Ukrainian government is talking much and doing little?

“The adoption of laws on public procurement and on gas sector reform, as well as the agreement reached with the IMF on a Standby Arrangement are all encouraging signs. However, although these measures are important, they are only preliminary steps as far as the reform agenda is concerned. The important thing now will be to see these measures put into practice. Ultimately Ukraine’s reform record will be judged on its actions, and their impact on people’s lives.”

Mr. Fuele, can you see any positive or constructive reaction of the Ukrainian government to EU statements about the pressures faced by Ukrainian journalists of late?

“As I have mentioned already, freedom of expression and freedom of assembly are fundamental rights which need to be vigorously defended – not just in Ukraine but in all our countries. The EU is worried by reports suggesting a deterioration as regards respect for these principles in Ukraine. We have expressed our concerns very clearly to Ukraine’s leadership and have called on them to be vigilant in this regard. We look forward to seeing an improved situation in Ukraine.”

In a Den article published in April, on the eve of your visit to Kyiv, you mentioned how important our country is for the EU. Why then is the EU afraid to include in the future Association Agreement a clause on the prospect of Ukraine’s membership in the EU, if the country meets the aforesaid Copenhagen criteria, so that the government does not have a reason to say that the EU does not wish Ukraine to join?

“I think it’s important to focus on the immediate issue before us. What is on the table today is an ambitious Association Agreement which aims to achieve political association and economic integration between the EU and Ukraine. It offers Ukraine the prospect of much closer cooperation across a very wide range of sectors from energy to transport, customs to taxation; environment to justice, liberty and security issues. In addition it holds out the prospect of significant access to the EU’s internal market of 500 million consumers once Ukraine has brought its norms and standards into line with the EU acquis in all relevant areas. At the same time we are engaged in a dialogue with Ukraine aiming at establishing a visa free regime for short-term travel.”

Mr. Fuele, you may have heard speculations about the date of the signing of the Association Agreement between the EU and Ukraine. Mr. Liovochkin, chief of the presidential staff, announced recently that the agreement would be signed on November 22, during the Ukraine-EU summit. But Brussels responded to this statement a few days later. Angela Filote made it clear that it was impossible to do that by this date. What can you say about this date juggling, what else is really left to be done, and what details are still to be finalized for this agreement to be ready for signing?

“We have made very significant progress overall in the negotiations of the Association Agreement. Only a few issues are still open. We remain fully committed to completing negotiations as soon as possible and welcome President Yanukovych’s own commitment to the process.

“When we talk about the deep and comprehensive free trade aspects of the Agreement, the negotiations become highly technical and require considerable input from both sides due to the ambitious nature of the Agreement. In our view we will need another year of technical negotiations before the Agreement can be ready for signature. In any event, as is normal practice, the EU and Ukrainian sides will prepare a report on the negotiations for the EU-Ukraine Summit on November 22.”

I have heard from some Ukrainian diplomats that signing of an Association Agreement will mean zero customs duties on imported EU automobiles and elimination of Ukrainian heavy industry. What is your opinion about this? Incidentally, what transitional period can Ukraine expect in order to meet EU demands?

“In the long run, the only way for Ukraine car industry to survive and moreover to develop is to provide good quality and attractive products. Relying on tariffs protection only is a dangerous illusion. Cancellation of tariffs is a two-way street — the Ukrainian car industry will be offered unlimited access (no quotas, no tariffs, same technical standards) to the EU market, the largest and the wealthiest in the world. When Romania opened progressively its frontiers with the EU over a decade through an FTA established before its accession, it increased its car production by three digits over the period and started to sell its cars throughout the EU, which it had no chance to do before. Moreover, a dialogue has already started between the EU and Ukrainian car industries aimed at assessing possible industrial cooperation. If a transitional period is needed, the EU is ready to discuss it.”

Once you said that all the EU’s eastern neighbors might benefit from a visa-free regime. When do you think this may happen for Ukraine and what does our country have to do for this to occur?

“We have made considerable progress on this issue. In September 2008 the EU and Ukraine launched a visa dialogue aimed at developing the conditions necessary for a visa- free regime for short stay travel to be put in place. Subsequently thanks to regular dialogue meetings and the participation of experts in field visits, we have been able to identify key reforms that need to be adopted in order to make progress towards a visa free regime. We expect these to be set out by the EU in a comprehensive Action Plan towards visa libe­ralization in the near future.”

Catherine Ashton recently said at an EU summit that Ukraine may be put on the list of strategic partners. Can this be an alternative to Ukraine’s full EU membership?

“As I said, we have an ambitious offer for Ukraine, which would mean in practice its economic integration into the EU and a strong political partnership. Let us first fully realize these objectives, before looking for the next step.”