Ukraine initiates bilateral EU screening on economic and monetary policy

On 4 June in Brussels, another round of bilateral meetings between Ukraine and the European Commission is taking place as part of the screening of Ukrainian legislation’s alignment with EU law. The meeting focuses on Negotiation Chapter 17, “Economic and Monetary Policy,” which falls under Cluster 3, “Competitiveness and Inclusive Growth.”

The Ukrainian delegation is led by Chief Negotiator and Deputy Prime Minister for European and Euro-Atlantic Integration – Minister of Justice of Ukraine, Olha Stefanishyna.

In her address, she highlighted the high level of preparedness of the negotiation team.

“We understand that this is one of the most complex and critical areas of our integration. It requires a comprehensive, nationwide approach and must be aligned with the realities of war, post-war recovery, and reconstruction. We are committed to ensuring that the policies developed guarantee resilience, stability, and prosperity for our country in conditions that, we hope, will significantly improve in the near future,” the Deputy Prime Minister emphasised.

She noted that Ukraine had repeatedly demonstrated its commitment to ensuring macroeconomic stability through its efforts and consistent monetary policy. Even before the EU accession process began, Ukraine made significant efforts to establish an institutional framework compatible with European institutions, capable of supporting economic stability and coordinating macro-financial assistance.

“The level of our legal harmonisation and institutional compatibility with the EU is high. I confirm that Ukraine is aligned with the EU acquis. At this stage, we are not requesting any transitional periods or derogations. We are not seeking any elements of accelerated integration within Chapter 17,” the Chief Negotiator stated.

The Ministry of Economy was represented by First Deputy Minister Oleksii Sobolev and Deputy Minister of Economy and Trade Representative of Ukraine Taras Kachka. They presented procedures for aligning economic policy and preventing threats to economic development stability, Ukraine’s readiness for the Macroeconomic Imbalance Procedure, and informed EU representatives about anti-corruption efforts in the field of economic and monetary policy.

“The report we presented today reflects extensive work in assessing our challenges, involving both Ukrainian and international experts. We showcased to our European partners the legal and institutional framework, reforms already implemented in economic and financial policy, and a roadmap for full alignment with the EU acquis. Progress in this area is crucial, both for European integration and for strengthening our own macroeconomic stability,” said First Deputy Minister of Economy Oleksii Sobolev.

According to Sobolev, it is significant that the Ministry of Economy continues to monitor economic resilience across multiple indicators, despite certain limitations on data access due to military actions. The next step Ukraine is preparing for is transitioning to the Macroeconomic Imbalance Procedure, a system used in EU countries to prevent and correct risky macroeconomic imbalances.

Anti-corruption efforts in economic and monetary policy were also presented, including measures and monitoring mechanisms to ensure transparent and effective use of recovery funds, including those outlined in Ukraine Plan for the Ukraine Facility.

“Combating corruption is not only a matter of public administration but also of economic stability and growth. Ukraine Plan includes specific anti-corruption measures: reforming key institutions, adopting new strategies, and establishing registries to enhance oversight and accountability. With the support of international partners, we ensure maximum transparency in the selection of recovery projects and the targeted use of funds for their implementation. This creates a more transparent environment for attracting investments,” emphasised Taras Kachka.

Overall, under Chapter 17, the Ukrainian side in Brussels covered the following topics:

• Participation in economic surveillance mechanisms prior to accession;
• European fiscal oversight and review of economic governance;
• Ensuring a robust national budgetary policy;
• Independence of the National Bank;
• Prohibition of monetary financing;
• Anti-corruption measures.

Background

Screening is the process of assessing Ukrainian legislation for compliance with EU law across each of the 35 negotiation chapters. It is a necessary stage in the EU accession negotiation process.

The EU acquis in the field of economic and monetary policy includes rules requiring the independence of member states’ central banks, prohibiting direct financing of the public sector by central banks, and preventing privileged access for the public sector to financial institutions. New member states are required to meet specific criteria to be able to introduce the euro in due course after accession.