Fellow Ukrainian families,
good evening!
In the whirl of
political events and political struggles I'd like to talk now about the fight
for the country and fight for our future. What we are capable of achieving in
2016 and what all of us should do. I will divide our 10 minutes into a few
blocks.
I start with an
economic block. The world is facing new economic challenges. The drop in oil
prices triggered the slowdown in industrial production in the world's largest
economies, primarily China. And this, definitely, affects the economies of
Europe and America. Ukraine is part of the global economy. Henceforth, we should
seek our way out of this difficult situation.
Above all, economic
stability is price stability. This means the absence of a galloping rise in
prices. Last year we came up against this problem and
the rate of inflation was almost 45%. This year we should settle an issue of
galloping inflation. We have set a target showing, which is 12% inflation in
2016. Are we capable of achieving this? We are, if we further pursue economic
reforms and if Ukraine prolongs participation in the program with the
International Monetary Fund.
To that end, we need
understanding of all political forces, parties, the President of the country, the
Government and we need unity to advance along this path of reforms.
In the meantime, we should
set afloat the Ukrainian economy, and this requires a resource. Where is the
source for that? First of all, this is an internal source, internal source of
the banking sector. We have had a discussion with representatives of Ukrainian
banks and the National Bank. What are the needs of small and medium-sized
businesses? Long and cheap loans. And in this matter
stability of the banking system is the key.
And again, I will
mention our cooperation with the International Monetary Fund and the World Bank,
as well as other international financial institutions. It provides us an additional
cushion to ensure economic stability.
Apart from domestic
investment, the country needs foreign investment. To support foreign investment
there is a rapid mechanism to leverage it through fair and transparent
privatization of state property objects. This is also a way of curbing corruption
in state-owned companies. So, this year we must launch comprehensive,
transparent and honest privatization. And I believe that we have a full
understanding with the Parliament regarding the need to attract the investor to
the Ukrainian companies to make him place funds here, create new jobs and direct
investment.
The third is business
climate and business environment. What are the problems faced by an
entrepreneur? What does corruption mean for the entrepreneur? This includes the
customs offices and the tax inspectorates. Task number one for the Ukrainian
Government is to restore order in the Ukrainian State Fiscal Service and the
Ukrainian Customs.
At the last Government
session the Ministry of Finance announced a wide reform of the State Fiscal Service
and the Customs Service. Foreign companies will participate in reforming and
management of four customs offices. To let us see how it works in Western
countries, to apply best foreign practices and demonstrate all the other
customs offices high standards and methods to provide service to the Ukrainian
business and not to take bribes.
We should complete the tax reform. And the first
step has been taken. We reduced twofold one of the biggest taxes on business which
is the tax on wages. However, the tax reform implies not just changing taxation
rates, but primarily the change in the system of tax administration,
simplification of taxes and abolishing a number of bureaucratic functions, those
only provoking corruption towards the taxpayers.
So here the Government
and the Parliament should have one single platform of tax reform. And I believe
that the Parliament would support the Tax Code submitted by the Cabinet of
Ministers of Ukraine.
Deregulation. Deregulation has been carried out throughout the past two years. A lot
has been done, but not enough. Therefore, we should continue our work to gradually
reduce the functions of the government and simplify registration, licensing and
other services provided by the State, and in particular, those designed to directly
ease life for each entrepreneur in the country.
I would
also like to dwell on an issue of the state-owned enterprises. Why is it
crucial to introduce new approaches in the appointment of heads of public
companies and how this affects the life of each Ukrainian citizen? The state-owned
companies don’t supposedly affect the social standards or wage of each
Ukrainian. But it is quite the opposite. If we continue with the appointment of
independent chairmen to manage major public companies, and there are 50 of
these, unaffiliated with the politicians, independent from the Government and
independent from any business interests, it would enable to improve the
financial performance of these companies. On the outcomes of the yearly
activity, each company transfers dividends to the state budget of the country.
These dividends fill the budget, so the budget can ensure an increase of social
standards, salaries for teachers, doctors, better financing of infrastructure objects.
That is, thereby the budget is capable to finance the needs of each citizen of
the country.
Therefore, large-scale changes in the leadership of public companies,
de-politicization of state-owned companies and the introduction of a single
principle of functioning of public companies - the principle of economic
efficiency - which is based on independence of directors, are among the
guidelines proclaimed and pursued by the Government, as, for example, it was
done in a state-owned company the National Joint Stock Company "Naftogaz of Ukraine", which a year ago had losses worth
USD 10 billion, while this year we are going to see it as a profitable company.
The economy
can be growing and the country can have the status of a democratic one just having
one factor - fair and independent judiciary. At that, non-corrupt
judiciary. We have had the first achievement - have voted for amendments
to the Constitution of Ukraine, which is pending to be adopted in the second
reading. What do these changes mean? These changes mean that Ukrainian judges,
all the Ukrainian judges should undergo the process of fair re-attestation.
Those judges, who are suspected of corruption, or those judges who pass illegal
sentences, should quit judging. And, they should be replaced by honest, young
professional lawyers, who wearing their judicial robes will render verdicts in
the name of Ukraine and in the name of Ukrainian justice.
For this purpose
there should be submitted before the second reading by the Parliament a new law
On the Judicial System and On the Status of Judges. And thus the new Ukrainian
judicial system will ensure the protection of the rights and freedoms of man
and citizen, will provide protection of business and
entrepreneurship and will provide the basis for democracy – it is free and fair
Judicial Branch.
Social justice is also the foundation for the European democratic society. Yes,
we pay wages and pensions timely. Yes, last year we increased them by 13 and
19% respectively. Yes, this year we plan to improve welfare standards by 12%.
But the problems of Ukraine are poverty and covert unemployment.
Hence, it
is crucial to create jobs and carry out a pension reform. Poverty and
corruption are interrelated. Rigid and uncompromising struggle against
corruption at all levels of government should be a shared commitment of the
President, the Government, the Parliament and all responsible political class
of the country.
Regarding the responsibility of the Ukrainian political class. I couldn’t care less about discord
and quarrel about petty points among the Ukrainian politicians in their race for
power. We must all fight for Ukraine and every Ukrainian citizen. The Ukrainian
Government declared the principles of a new and fair Ukrainian policy which
were supported by G7 states and our Western partners.
I believe that the President of Ukraine and responsible politicians in the
Ukrainian Parliament are committed to the same principles as we are. We need
unity: unity on the way of reforms, unity in delivering social equity, unity in
the judicial reform, unity in Ukraine’s advancement towards membership in the
European Union and NATO, unity in our goals, principles and values. And, when
we are united - we
are invincible.