wnetrze Ukraina 3vers.
Transcription
wnetrze Ukraina 3vers.
EUROPE – UKRAINE FORUM EUROPE – UKRAINE FO EUROPE – UKRAINE FORUM EUROP EUROPE – UKRAINE FORUM EUROPE – UKRAIN EUROPE – UKRAINE FORUM EUROPE – UKRAINE FORUM EUROPE – UKRAINE FORUM EUROPE – UKRAINE FORUM WROC¸AW, POLAND FEBRUARY, 23-24, 2007 EUROPE – UKRAINE FORUM EUROPE – UKRAINE FORUM WROC¸AW, POLAND FEBRUARY, 23-24, 2007 Partner Organizer EASTERN INSTITUTE 4 Text and Concept Artur Negri Graphic Design Odra Creative Bridge English Translation Marek Niedêwiecki Piotr Wilk, PTS-Professional Translation Services Photographs Archives of the Eastern Institute Publisher / Forum Organizer Foundation Institute for Eastern Studies (Eastern Institute) ul. Solec 85 00-382 Warszawa Tel.: + 48 22 583 11 00 Fax.: + 48 22 583 11 50 e-mail: [email protected] www.forum-ekonomiczne.pl Warsaw 2007 © Foundation Institute for Eastern Studies ISBN 83 60172-90-0 5 Preface Zygmunt Berdychowski Chairman of the Economic Forum Programme Council (from the left) Rafa∏ Dutkiewicz Mayor of City Hall of Wroc∏aw Europe – Ukraine Forum is a part of the Economic Forum’s agenda, which is held annually in Krynica. To elaborate on the debates held in Krynica at greater length, the Eastern Institute organizes special conferences which are dedicated to individual subjects and attended by prominent decision-makers and experts. Ukraine is an important element of the European political stage. Political and economic changes, which take place in Europe are of essence for development of a lasting political and economic map of Europe. Nevertheless, Ukrainian policy is at many times hardly comprehensible for the outside observers of political life. Consequent changes of the governments entail changes both in the aspects of foreign policy and in the directions of the economic reforms. Explicitly pro-Western and pro-European declarations of the Orange coalition government has been replaced with more sceptical declarations of joining NATO and the EU accession. Ukraine is an immensely important economic partner of Europe. Its territory is crossed with a majority of gas and oil pipelines from Russia to Europe. The situation in Ukraine is significant for the energy security of Europe. Ukraine is characterized by an enormous economic potential and no less considerable growth potential. All these factors bring Ukraine to a closer focus of foreign investors. At the same time, Ukrainian investors enter the European markets. The system of economic relations is becoming increasingly tight. Ukrainian economy is passing through a stage of system transformation and the questions of the circumstances of this transformation are becoming increasingly important. Europe – Ukraine Forum in Wroc∏aw was the place of the largest and the most representative meeting of Ukrainian and European politicians, after the Orange Revolution. The meeting was attend- 6 ed by more than 180 politicians, scientists and experts, including 40 members of parliament from Europe, 18 of whom came from Ukraine. Ukrainian politicians represented the entire scope of Ukrainian political stage. They included representatives of the governing coalition as well as the opposition parties. The discussions were participated by outstanding experts from Europe and the United States so as to portray the present political and social circumstances more thoroughly. In spite of discrepancies, Ukrainian politicians stressed the relevance of pro-Western and pro-Union direction of Ukrainian policy and expressed hope for a clear signal of readiness to accept Ukraine in the European Union. Political and social debates were accompanied by discussions on transformation and phenomena of the economic life. Ukrainian economy is developing and changing in a very dynamic manner. How is the economy changing? How is it related to or even entangled in politics? Is it possible and if yes then how to fight the corruption? – these and similar questions were asked and tried to be answered. A debate on the energy security of Europe and the role of Ukraine touched the fields of politics and economy. What is the political landscape of Ukraine? The key players, interests, mutual relations. Positive and negative results of political reforms. Ukraine and the unifying Europe in the times of civilization, political, social and cultural transformation processes. Internal and external factors providing basis for Euro-integration strategy of Ukraine. Possibility of membership and association with the EU and the adoption of “EU neighbour” status. Ukraine - between NATO and Russia: Search for optimal model of regional security. The analysis of the course of transformation, market system reforms and institutional reforms in Ukraine. The role of Ukraine in assuring stability in the region. Influence of current economic circumstances on economic, social and political development of Ukraine. What principles and what instruments may be applied in building a civil society in Ukraine? Impact of European standards and values on shaping democracy, government system effectiveness and the civil society. Europe Ukraine Forum was devoted the above and similar issues. www.forum-ekonomiczne.pl 7 TABLE OF CONTENTS 5 ■ Preface 9 ■ Ukraine in integrating Europe 47 ■ Ukrainian Economy and the EU: Partner or Burden? 63 ■ Organizer 73 ■ Partner www.forum-ekonomiczne.pl 8 MISSION OF THE FORUM To build a favourable climate for the development of political and economic cooperation among the states of the European Union and their neighbours. In carrying out its mission, the Forum is independent and impartial. www.forum-ekonomiczne.pl Ukraine in integrating Europe EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE – – – – – – – – – – – – – – – – – – UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM 10 Debates: ● Is Ukraine a part of Europe? Between history, present day and future ● European Union and Ukraine: between solidarity and game of interests ● EU integration instruments for Ukraine ● Political Ukraine 2006. Two years after the Orange Revolution ● NATO and Ukraine. Contemporary and future scenarios ● The status and perspectives on advancement of democracy in Ukraine. ● Democratization as a way to Europe www.forum-ekonomiczne.pl EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE – – – – – – – – – – – – – – – – – – UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM 11 Ukraine in integrating Europe Natalia Prokopovych, Chairman of the EU Integration Committee, Parliament of Ukraine Thanks to the Orange Revolution, Ukraine has entered on a different, new path. Today, the country is experiencing an entirely different level of democratic relations. The mass media enjoy the liberty of representing their views and opinions about the political situation in Ukraine. “A strong influence is the spirit of self-confidence; trust in the strength of our citizens, who nowadays have a completely different attitude towards the authorities and themselves. Today, their behaviour is radically different;, they are no longer passive,” commented Natalia Prokopovych, Chairman of the EU Integration Committee in the Parliament of Ukraine. www.forum-ekonomiczne.pl 12 Plenary session: “Ukraine and the European Integration” How should we act in the European Union to become closer to Ukraine and give it a chance? What do Ukrainians expect from us? What signals should both parties – Ukraine and the European Union – send to each other? Ukrainian society is as much as 90% in favour of Ukraine’s integration with the European Union. Why are Ukrainian citizens so positive about membership of the European Union? According to Propokovych, the motivations are historical, because Ukraine has always been a part of Europe, and besides that, the Ukrainian mentality is similar to the mentality of the EU societies. “Today, we have the sense that thanks to visits by EU citizens to our country and our visits to the EU, our societies are mutually enriched. When we hear that a priority for Ukraine should not be the European Union, but Euro-Asia, it is not acceptable for the citizens of Ukraine.” www.forum-ekonomiczne.pl 13 Today’s Ukraine, three years after the Orange Revolution, is a different country than in the past, because it has followed a proper direction. Jerzy Buzek, MEP and former Prime Minister of Poland, thinks that: “It is pointless talking about either the Blue or the Orange camp as the winner, it does not matter. What’s most important is the final effect. It means a safe and stable Ukraine approaching the European Union, because it is a chance for modernizing the country and carrying out difficult reforms, which can give Ukraine a chance for advancement. It can also improve security and the overall situation in the European Union. The European Union is very interested in a stable, democratic and developing Ukraine.” Leonid Kozhara, Deputy Chairman of the Foreign Affairs Committee of the Parliament of Ukraine, is a representative of the Regions Party, the biggest faction in parliament with www.forum-ekonomiczne.pl 14 186 deputies. The Regions Party is also the biggest group in the governing coalition of Ukraine, consisting of three parties: socialists, communists and, precisely, the regions. Kozhara stressed that Europe has expressed its acceptance of the Orange Revolution. Nevertheless, after having received applause in many parts of the world, Ukraine has not succeeded in taking full advantage of this historical opportunity. “We have overestimated our capabilities. We thought that the victory of the Orange Revolution in Ukraine would imply the treatment of Ukraine by Europe Maciej P∏a˝yƒski, Vice-Chairman of Senat, Poland and the rest of the Western Hemisphere as other Eastern European countries. It was expected that Ukraine would be granted a more advanced status than it had before the Orange Revolution. I think also that the new team led by President Yushchenko to power has not been able to realize the leading concepts underpinning the Orange Revolution,” said Kozhara, who added: “I observed all the processes experienced by us directly after the revolution and sometimes I could not believe that they were happening in Ukraine.” He also commented on the action plan, prepared with President Kutchma, and including 274 obligations. A major part of these obligations, around 80%, are unilateral obligations on the part of Ukraine. A further 15% are bilateral commitments by Ukraine and the European Union, and just 5% are unilateral commitments by the European Union. Natalia Prokopovych Chairman of the EU Integration Committee in Parliament of Ukraine. The proposals put forward by the European Union to the neighbour countries, within the scope of the new neighbourhood policy, are no longer the same tasks that would satisfy our ambitions, because we have already left those tasks behind. Within the coming year, all of them will be fulfilled. Therefore, we propose to enlarge the propositions for Ukraine, because the current form of the agreement on the neighbourhood policy signifies for us only that the framework is delimited, and thus it does not bring in anything new. I would like to focus also on the fact that Ukraine has continued to be – and everyone speaks about it – a strategic partner of the European Union, which implies that special programmes should be prepared for such countries, which include not only Ukraine but also Georgia. www.forum-ekonomiczne.pl Since the early days of its independence, Ukraine has stated that it is pro-European. In the middle of the 1990s it also stated that it wanted to be a member of the European Union, and since that time political declarations and changes in the legislation followed the direction of European integration. Later, however, when the European Union announced a new neighbourhood policy, Ukraine joined the company of such countries as Algeria, Tunisia, Israel and many others, which have never expressed any European aspirations. In such a situation, many Ukrainians were disappointed. They had expected much stronger political declarations on the part of the European Union. 15 Adrian Severin, Chairman of the EU-Ukraine Delegation of the European Parliament, Romania The Deputy Chairman of the Foreign Affairs Committee of the Parliament of Ukraine stressed that the European Union does not yet want to discuss the methods and measures required to affiliate Ukraine with the European Union. It Jerzy Buzek means, according to Kozhara, that a document will be preMEP and former Prime Minister of Poland pared, similar to the action plan that is currently in force. And it It is pointless talking about either the Blue or the Orange is, therefore, again a unilateral camp as the winner, it does not matter. What’s most commitment on the part of important is the final effect. It means a safe and stable Ukraine obliging the county to Ukraine approaching the European Union, because it is adopt a significant volume of a chance for modernizing the country and carrying out legislation, introduce various difficult reforms, which can give Ukraine a chance for mechanisms, and so on. advancement. It can also improve security and the over“Frankly speaking, it might all situation in the European Union. The European respond to governmental strategy. We do not need any other Union is very interested in a stable, democratic and documents on our political and developing Ukraine. economic reforms. We would like to hear stronger political statements. Task number one for us is to receive confirmation from the European Union that the door is still open and that the accession of Ukraine to the European Union will become more and more certain with each passing day,” stated Kozhara. Ukraine still has a year to fulfil the commitments arising from its cooperation with the www.forum-ekonomiczne.pl 16 Bohdan Osadchuk, Free University, Berlin European Union, pointed out Natalia Prokopovych. What awaits Ukraine in the near future, then? First of all, there is an agreement on partnership and cooperation, which is being prepared this year. It is possible that work on this document could be prolonged until some time next year. “Our primary concern is that such an agreement should have much wider scope than the previous one. Secondly, such an agreement should necessarily include the period in which it is in force; because if this is an open-ended agreement, it will not be a sufficient motivation for either the EU or Ukraine. We would like to include in this agreement a proposition for Ukraine concerning associate membership and economic integration, so that in spite of everything we can cooperate more specifically in certain areas,” said the Chairman of the EU Integration Committee in the Parliament of Ukraine. Leonid Kozhara Deputy Chairman of Foreign Affairs Committee in Parliament of Ukraine We would like to hear stronger political statements from the EU. Task number one for us is to receive confirmation from the European Union that the door is still open and that the accession of Ukraine to the European Union will become more and more certain with each passing day. www.forum-ekonomiczne.pl Prokopovych stated that Ukraine is not satisfied with the neighbourhood policy. “The ambitions of Ukraine were not fulfilled by the proposals put forward by the EU. The proposals put forward by the European Union to the neighbour countries, within the scope of the new neighbourhood policy, are no longer the same tasks that 17 Jerzy Buzek, MEP, former Prime Minister of Poland Dmytro Vydrin, Chairman, Committee for Global Security, Parliament of Ukraine would satisfy our ambitions, because we have already left those tasks behind. Within the coming year, all of them will be fulfilled. Therefore, we propose to enlarge the propositions for Ukraine, because the current form of the agreement on the neighbourhood policy signifies for us only that the framework is delimited, and thus it does not bring in anything Adrian Severin new. I would like to focus also Designated Chairman of the EU-Ukraine Delegation of on the fact that Ukraine has conthe European Parliament tinued to be – and everyone speaks about it – a strategic We need a pro-Ukrainian government in Kiev. A propartner of the European Union, Ukrainian government means that it is pro-European and which implies that special proit also denotes being pro-democratic and pro-developgrammes should be prepared ment.” for such countries, which include not only Ukraine but also Georgia.” Propokopovych also stressed that in the European neighbourhood policy there are economic mechanisms, which are particularly interesting for Ukraine. Ukraine will follow this direction. “Stability, security and prosperity for Ukraine are key to the stability, security and global role of the European Union. For some people this might seem obvious, while others think that it has already been proven. Yet for others it is just a simple hypothesis, which still needs to be proven,” said Adrian Severin, Chairman-designate of the EU-Ukraine Delegation at the European Parliament, who added that: “We need a pro-Ukrainian government in Kiev. A pro-Ukrainian government means that it is pro-European and it also www.forum-ekonomiczne.pl 18 denotes being pro-democratic and pro-development.” The European Union, according to Severin, currently faces a crisis of vision and also an institutional crisis. We should look more realistically at this crisis. As long as the European Union will have no vision and no concept for effective institutional functioning, its member states will have difficulties in approaching relations with Ukraine with common sense. Hence the EU strives for reforms and progress in Ukraine. Severin thinks that we should be aware that the European identity should permit it to take on the role of a global player. If we really want to be global actors, starting from the philosophy Leonid Kozhara, Deputy Chairman of Foreign Affairs Committee, Parliament of Ukraine and the position of the European Union’s founding fathers, then we should strive for such market types, structures and resource levels that allow us to compete with other global players. How can we pursue such a market, if we do not consider Ukraine a part of it? Severin cannot see any significant progress in this strategy without the integration of Ukraine into the EU’s energy sector. How can we harmonize the economic development policy of Ukraine and the European Union? We cannot in fact develop such a policy without having common security and foreign policies. The faster we strengthen institutional reforms, to overcome not just the crisis of vision and identity but also the institutional crisis in the EU, the faster we will be able to move on to the next steps in the integration process. Maciej Pæaøy¡ski Vice-Chairman of Polish Senate According to Severin, we should start with real and significant Poland supports the Euro-Atlantic aspirations of agreement on extended coopUkraine. Poland will be trying to influence Europe’s easteration and harmonization with ern policy. Ukraine. This agreement should be much more balanced. The European Union cannot proceed with the same approach, the same path, in its attempts to integrate Ukraine, whatever such integration means, as with the other member states, or new members such as Romania. A unilateral approach that does not involve society, when we speak about the common character of this project, is not an approach that can mobilize the full potential of both sides. The next step in this integration should be to share everything, except institutions. And in the end, we should be looking at methods that allow both of us to make use of the majority of institutions, if not all of them. “Poland supports the Euro-Atlantic aspirations of Ukraine,” stated Maciej P∏a˝yƒski, ViceChairman of the Polish Senate, who declared at the same time: “Poland will be trying to www.forum-ekonomiczne.pl 19 Oleksiy Haran, National University Kiev-Mohyla Academy, Ukraine Bogumi∏a Berdychowska, PolishUkrainian Forum Karl Freund, OVP, Parliament of Austria influence Europe’s eastern policy, but it will certainly not formulate it individually.” P∏a˝yƒskii emphasized also that the European Union, as a large organization, will soon have to make order in its own ranks so as to handle institutional reforms, and elaborate common policies in a different scope, even as regards the issue of energy policy. Cooperation with such countries as Ukraine falls within this scope. “When I arrive in the United States and I hear that the fastest way to Europe is by membership of NATO, I can understand that. However, when I arrive in Germany, high-ranking Dmytro Vydrin German officials say to me: Chairman, Committee for Global Security in Parliament ‘Why do you need NATO; let us of Ukraine. better create other structures, and follow directly the way to When I arrive in the United States and I hear that the the European Union. The way fastest way to Europe is by membership of NATO, I can through NATO is not the best understand that. However, when I arrive in Germany, way.’ Therefore, when we have high-ranking German officials say to me: ‘Why do you to deal with such discrepancies, need NATO; let us better create other structures, and foleven as someone who has dealt with these issues for more than low directly the way to the European Union. The way twenty years, I am disoriented as through NATO is not the best way.’ Therefore, when we to which model is the most have to deal with such discrepancies, even as someone effective, which way seems the who has dealt with these issues for more than twenty most forward thinking for years, I am disoriented as to which model is the most Ukraine,” reflected Dmytro effective, which way seems the most forward thinking for Vydrin, Chairman of the Ukraine. Committee for Global Security in the Ukrainian Parliament. According to Vydrina, several focuses of soft sabotage have emerged in Ukraine. Principally, there is the powerful oligarchic business, which has become accustomed to work offstage, perhaps not in the shadow economy, but offstage in the sense of exhibiting a fear of applying transparent accounting, since it is believed to bring only harm. It is also a part of society that is accustomed to receiving their pay in envelopes, for fear www.forum-ekonomiczne.pl 20 Debate: EU Instruments and Policies towards Ukraine that transparent ways of paying their salaries will mean they lose out. There is also a section of the political elite that is accustomed to unclear so-called political technologies, thanks to which they win elections, including the most recent ones. How can we together convince the internal soft sabotage groups and different social strata that accession to the European Union is not a threat to the quality of life in Ukraine, or a threat to the internal, national goals of Ukraine? Is Eastern Europe the same Europe as Western Europe, asked Yury Ruban, Director of the National Institute for Strategic Studies from Ukraine. In his opinion, Eastern Europe was invented by intellectual thought in the XVIII century, which introduced the famous division of Yury Ruban states into historical and nonDirector, the National Institute for Strategic Studies, historical, a division that was Ukraine supported by the view that the lands east of the Oder were not Ukraine is also challenged by energy configurations in entirely genuine Europe. Yalta the contemporary world, which challenge the country’s confirmed this view. “Therefore ability to incorporate its energy security within the Eurowe understand the position of pean context. This is also a challenge for the EU and its Ukraine, as a present neighbour of the European Union, which ability to see Ukraine in this context. Would energy secuhas a better understanding of rity be decisive to Ukraine’s integration with the EU? www.forum-ekonomiczne.pl 21 Milan Horacek, European Parliament, Germany other EU member states, on the effects that are brought by division into real and unreal members. I would like to point out that values lie at the very foundations of Europe. It is a sphere of common values preserved by the European nations. I hope that it is already not Bohdan Osadchuk regarded as indecent after the Free University in Berlin Orange Revolution to deliberate whether Ukrainians are followIt is good that Ukraine is not just Orthodox, but has also ers of liberty and democratic values.” a Catholic part. The connection between the Greek Orthodox Church and Rome, the papacy, is a powerful A whole series of facts testify to enrichment of Ukrainians’ spiritual lives. Apart from the the European identity of Greek Orthodox Church there is also the Ukrainian Ukrainians. Public opinion polls Roman Catholic Church. There is also a Protestant presshow unanimously that 90% of ence. This religious divergence is very positive, and cerUkraine’s citizens see the future tainly not just a negative phenomenon. development of their country only in terms of the advancement of democracy. Ukrainians have expressed this opinion also at the ballot box. Ukrainian citizens are convinced that the winners in elections will be forces declaring the European choice of Ukraine. The values that underpin the European identity are very strong among younger generations of www.forum-ekonomiczne.pl 22 Emmanuelis Zingeris, Chairman of the Subcommittee on the Neighborhood Policy, Parliament of Lithuania Ukrainians. Within the past few years Ukraine has experienced the disappearance of the identity that was once called a Soviet identity. The number of people who identify with the former Soviet Union has decreased, while more and more of Ukraine’s citizens have identified with Ukraine. Increasing numbers of Ukrainian citizens are saying Oleksiy Haran that Ukrainian identity, indeNational University Kiev-Mohyla Academy in Ukraine pendence and democracy are significant, and the important The Orange Revolution proved that we are a part of values regarded by them are Europe, we share its values. The problem is that democworth defending and fighting racy made a joke of democrats, because its opponents for. gained more from democracy than the democrats themselves. The European identity manifested by Ukraine and the caution shown by European governments in recognizing Ukraine as a European state are reviving a concept about Europe that was seemingly no longer existent, and which comprises two elements. Many European capitals are tempted to divide Europe again into European and “semiEuropean”, or a second-class Europe. The very fact that today’s Ukrainian identity is based on a civil society is worthy of appreciation and support from the European Union. www.forum-ekonomiczne.pl 23 According to Ruban, we have to deal here with a certain paradox. First there is a programme of negotiations on simplifying the visa regime, which concerns simplifying the bureaucratic visa procedures. Yet, integration for the future Ukrainian elite – its students – is not facilitated within this scope. So Ukraine is restricted in joining the European intellectual mainstream. Ruban also drew attention to the negative processes that have an influence on bringing Ukraine closer to Europe through accession to the European Union. He recalled a vote by the Supreme Yury Shcherbak, Director, Center for Global and Area Studies, National University Kiev-Mohyla Academy, Ukraine Council of Ukraine, which recognized the great famine in Ukraine as a crime. This vote was significant because Ukraine underlined in it what the great famine meant for the country. Many millions of people died, because they were not ready to abandon values that were fundamental to contemporary Europe. They decided to resign from the primacy of the collective interest for the benefit of individual interests. They were not ready to consent to the state’s right to deprive them of their daily bread just because the state needed grain. Recognition of this fact at the political level is proof that there is an identity. We are witnessing a process of restoring European identity, although it is Bogumiæa Berdychowska quite complex. Polish-Ukrainian Forum Ukraine is also challenged by energy configurations in the contemporary world, which challenge the country’s ability to incorporate its energy security within the European context. This is also a challenge for the EU and its ability to see Ukraine in this context. Ruban also considered the question of whether energy security would be decisive to Ukraine’s integration with the EU. Ukrainian society holds a European as well as a EuroAsian passport. One cannot be blind to a few hundred years of Ukraine’s joint statehood with Russia, or to the influence of the Orthodox Church with its clearly antiWestern and anti-European accent. All this exists. I think, by the way, that pro-European Ukrainian circles are short-sighted in that they do not see the fact that beside politics, beside the Russian influence, there is a problem with making a precise geopolitical choice within Ukrainian society, which results in the effectiveness of the influence of the pro-European elite on their own society, being impaired. Bohdan Osadchuk from the Free University in Berlin pointed out that Ukraine was already a part of Europe at the time of Kiev Russia. It was part of Byzantine culture and spirituality, and at the same time it was connected by dynastic bonds with many countries and dynasties in Europe. In fact, Europe was dynastic at that time. Kiev’s sovereigns were connected with the royal houses of both France and Scandinavia, and with those of the separate parts of Germany. Osadchuk emphasized www.forum-ekonomiczne.pl 24 also that territorial divisions caused by various forms of Ukraine’s enslavement led to a situation that was so strange that it could be called critical and tragic, and at the same time precious. Territorial divisions resulted in great parts of Ukraine’s territory becoming parts of another part of Europe, not the eastern, but the western one. Thanks to its ties with the Habsburgs, Galicia was connected with Vienna. Zakarpathia, after World War I, belonged to Czechoslovakia and experienced a period of democracy. Ukrainian parties have never been as numerous as in Zakarpathia in the 1920s and 30s. Oleh Rybachuk, Office of the President of Ukraine Religious differences are also regarded as important by Osadchuk. In his opinion, it is good that Ukraine is not just Orthodox, but has also a Catholic part. The connection between the Greek Orthodox Church and Rome, the papacy, is a powerful enrichment of Ukrainians’ spiritual lives. Today, the situation is even more diverse because apart from the Greek Orthodox Church there is also – and very few people know about it – the Ukrainian Roman Catholic Church. The hierarchy of this Church, which cherishes different values, is now being built up in competition with the Greek Orthodox Church. There is also a Protestant presence. This religious divergence is very Cornelius Ochmann positive, and certainly not just a Bertelsmann Stiftung, Germany negative phenomenon. In Germany but not only there, in the European Union as well, there is a huge problem of understanding why Poland supports Ukraine’s aspirations to the European Union so fiercely and uncompromisingly. In Berlin, we often use arguments of economic nature, which are arguments against excessively fast accession of Ukraine to the European Union. After World War I, the first iron curtain in history was closed along the western border of Ukraine and the eastern border of Poland, observed Osadchuk. France demanded the setting up of a “cordon-sanitaire”, and the system, which Poland was subordinated to, separated Ukraine from Europe. As a matter of fact, the only opportunities for Ukraine’s intellectuals, writers, poets and painters layd in emigrating to Germany. And this happened because in Rapallo, located close to Genoa, Weimar Germany signed with Soviet Russia a 1921 treaty, which was later on also signed by Ukraine. Soviet Ukraine had its legation in Berlin. Contacts between the Weimar Republic and Soviet Ukraine were very intense. This, according to Osadchuk was the only avenue for maintaining relations with Europe. Poland cancelled virtually all contacts with the then capital in Kharkov. In 1934, the capital was moved to Kiev, but by that time the Stalinist shadow had fallen over Ukraine and, almost simultaneously, a Nazi shadow over Germany. Something very unpleasant and www.forum-ekonomiczne.pl 25 Yury Ruban, Director, The National Institute for Strategic Studies, Ukraine John O’Brennan, Lecturer, University of Limerick, Ireland Andras Barsony, Ambassador of Hungary to Ukraine tragic happened at this time. Elements of a fascist oriented emigration collaborated with Nazi Germany, while other emigrants refused to surrender. “We left World War II behind with a terrible, dangerous centre of Polish-Ukrainian conflict, connected with the Volhynia massacre. Both Poles and Ukrainians were filled with thoughts of revenge. One group of emigrants and another, with few exceptions, dreamt of a World War III that would sweep away Oleh Rybachuk communism and settle our borOffice of the President of Ukraine der disputes. Some wanted to Can Ukraine act as a solidary partner if in accordance move the post-Yalta borders to with the decision of the European Union if has been the east, and others to the ranked in one category with Northern African and west,” said Bohdan Osadchuk. Middle East states and our citizens today queue for visas, although we understand that it might be simplified? How can Ukraine, which is not the EU member, embrace the principle of the European solidarity, when all the EU members show considerable discrepancies on such issues as the energy security, EU enlargement, relationships with the United States, attitude towards NATO or towards the Russian Federation? With whom should Ukraine sympathize? How Ukraine should react to such projects as the Northern Pipeline on the bottom of Baltic Sea? Should it advocate its supporters or toe the line of its critics? Oleksiy Haran from National University Kiev-Mohyla Academy in Ukraine remarked that: “The Orange Revolution proved that we are a part of Europe, we share its values. The problem is that democracy made a joke of democrats, because its opponents gained more from democracy than the democrats themselves.” According to Haran, the problem is that the opponents of the orange forces have benefited not just from democracy. They can also refer, for example, to the institutions of law. However, it is important if these forms of behaviour are also followed by democratic content. The problem may also consist in that, behind a certain democratic cover, we can encounter also entirely undemocratic content. This is one of the dangers that Ukrainian society has to face today. Haran also referred to historical experience and the experiences of Eastern European revolutions, which proved after ’89 that the current situation in Ukraine is not unique. Many www.forum-ekonomiczne.pl 26 Debate: Ukraine in 2006. Two years after the Orange Revolution countries from Eastern Europe and the post-Soviet territory are also experiencing successes, and later it turns out that in coming to power the democratic forces were superseded by undemocratic ones. However, this does not nullify or deny the trend that is prevailing in Ukraine at present. After all, it is a direction of moving towards Europe, despite all the complications that appear on the way. Another interesting issue is Russia’s attitude to Ukraine. We have, in this case, to deal with two Russias. “I saw not long ago a programme by Gleb Pavlovski on the NTV channel. The language used in this broadcast was not suitable to be repeated in decent company. Thus, I think that a European Ukraine is not something Mr Pavlovski, Mr. Putin and his entourage, need. Meanwhile Arkadi Mozes convincingly indicated the necessity for Ukraine to be a member of the European Union. I think that it is the view of liberal Russia, which Aleksander Sushko is in a minority today. Liberal Director of the Centre for Peace, Conversion, and Russia needs Ukraine, because Foreign Policy in Ukraine its accession opens new prospects for Russia.” I am astonished by the idea that Ukraine should develop its alliance with Belarus. We even should not think about it, not to mention it is not in line with the European Union policy. www.forum-ekonomiczne.pl “Ukrainian society holds a European as well as a EuroAsian passport. The speakers 27 emphasized the European passport, but one cannot be blind to a few hundred years of Ukraine’s joint statehood with Russia, or to the influence of the Orthodox Church with its clearly anti-Western and anti-European accent. All this exists. I think, by the way, that proEuropean Ukrainian circles are short-sighted in that they do not see the fact that beside politics, beside the Russian influence, there is a problem with making a precise geopolitical choice within Ukrainian society, which results in the effectiveness of the influence of the pro-European elite on their own society, being impaired,” stated Bogumi∏a Berdychowska from the Polish-Ukrainian Forum. In her opinion, statehood is the most important value for Ukrainians at present. It is the value that is most unifying for the east and the west of the country; however, a Ukrainian patriot can express anti-European opinions. A Ukrainian patriot, as someone who regards the Ukrainian state as a value, can also think that the future of Ukraine is in the Euro-Asian community or in close cooperation with Russia. “The main question for Ukrainian society is which passport the society will choose to hold; the European or the Euro-Asian passport. It is not obvious which political option is currently adhered to by Ukrainian society. We can find in Ukrainian society proof of both theses, one that the society is pro-European and one that it is anti-European, or in other words, regards Europe as a threat.” For Berdychowska, religious issues are extremely important and underestimated, but in a cultural and not a confessional context. She also pointed to the “bon motu”, whose author is President Lukashenko and who, when asked who he is, answered that he is an Orthodox atheist. According to Berdychowska, Orthodox atheists constitute a very large part of both the electorate and Ukrainian society. The question: To what extent, how and who belongs to this group, which in a natural way inherits, with the cultural, Orthodox code, a certain reluctance, if not fear, and sometimes even a very negative attitude, to everything that emanates from the West. Berdychowska was surprised to read the official website of the Ukrainian Orthodox Church of the Kiev patriarchate, one of the biggest and the only canonical, Orthodox Churches and in the formal sense still the biggest Orthodox Church in Ukraine. The whole cultural and political message of this party is absolutely anti-Western, claiming that only hand in hand with Russia can Ukraine remain Ukraine. Berdychowska said that as long as we are not aware of all the existing conditions, all the potential threats, there is no hope for a change to this status quo. In her opinion, the cultural and religious issues and the interweaving of cultural and religious Alain Guillemoles issues with social issues, is to a Journalist, Deputy Chief of Foreign Desk, Le Croix, great extent characteristic of France. Euro-Asia. The next issue, according to Berdychowska, is respect for intellectual property. Which side does Ukraine support, she asked. On the one hand, intellectual circles express acute anxiety about the still inadequate understanding and observance of the issue of respect for intellectual rights in Ukraine. While, on the other hand, it is completely the opposite. A prominent Ukrainian politician, For a part of the French, the enlargement of the EU with the ten new members was a shock. There is this common notion of loss of identification. As a consequence, the President of France introduced a new condition to the French constitution. This condition stipulates that each new state aspiring to the European Union must first obtain consent from France via the referendum. For France to ratify a new treaty, each state which is to become a candidate, will be required to get “yes” in the referendum in France. This means that as far as Ukraine is concerned, this issue will emerge one day. This will be a fight for the future. www.forum-ekonomiczne.pl 28 Teodor Melescanu, Vice-Chairman of the Senate, Romanian Parliament the former chairman of the Supreme Council, has on several occasions been accused of plagiarism, a charge that has been proven word by word, but he has still not faced any political consequences. The most interesting question for Berdychowska is, whether Yury Shcherbak Ukrainian society is proDirector of the Center for Global and Area Studies, European or Euro-Asian. For National University, Kiev-Mohyla Academy in Ukraine Ukrainians, what is most important is if, in the near future, the pro-European attitude, illustratThe point is not that we prove to ourselves that we are ed by the question of whether Europeans. We do not need to be convinced. We felt, Ukraine is a part of Europe, will were and will be Europeans. If Ukraine becomes the EU not be brought down to the member, this will mean a civilizational revolution, a deepquestion of whether Ukraine is a er one than all the revolutions we have been through. The part of the European Union and Ukraine will move from the Byzantine, post-Moscow not Europe as such, and everyworld to the world of Western opinions. thing else no longer matters. At present the full force of this problem has not yet been felt. There are always those who will argue that Norway and Sweden are not in the European Union, but still manage to be part of Europe. www.forum-ekonomiczne.pl 29 Does Ukraine really have a future? Can we feel solidarity of the European Union states with Ukraine or do, in spite of all, in some fields the internal interests of the EU members prevent this? Perhaps, they dominate and determine the attitude towards Ukraine? “In Germany but not only there, in the European Union as well, there is a huge problem of understanding why Poland supports Ukraine’s aspirations to the European Union so fiercely and uncompromisingly. In Berlin, we often use arguments Anatoliy Matviyenko, Parliament of Ukraine of economic nature, which are arguments against excessively fast accession of Ukraine to the European Union”, said Cornelius Ochmann from Bertelsmann Stiftung, Germany. Thinking to whom in the European Union we could compare Ukraine, he recalled Spain. He reminded that several years ago Spain was considered non-success within the European system. Now, Spain represents an extraordinary self-confidence. This is also reflected in Spanish economic results, which proved astonishing over the course of the last Roman Shpek decade. In his opinion, there Ambassador of Ukraine to the EU are no circumstances which would hamper Ukraine from Ukraine’s strategic objective is the EU membership. emulating the Spanish situation. Both Ukraine and the EU are not ready for the Ukraine's O’Brennan also recalled Ireland, membership. How to use the instruments the European where owing to its EU memberUnion had used for other countries? ship, the society and politics went through a really revolutionary development. Ireland has opened its labour market for new Member States. The immigrants have integrated with the local economy in a manner that was considered utterly impossible by the sceptics prior to 2004. Nowadays, approximately 12 per cent of Ireland’s population come from other EU states. According to O’Brennan, people from Central and Eastern European Member States, who believe in dynamics of integration and who believe that the enlargement process is a positive one, must strive to convince the decision makers in Brussels of the need of fast integration of Ukraine with the European Union. Oleh Rybachuk from Office of the President of Ukraine noticed that we got used to deem the terms “Europe” and “European Union” as synonyms. Rybachuk, nonetheless, pointed that the citizens of the Old EU, who do not believe that the European Union reflects the interests of all nations, express certain scepticism. There is a question of such organizations as NATO, which is responsible for the EU security or the Council of Europe. „Can Ukraine act as a solidary partner if in accordance with the decision of the European Union it has been ranked in one category with Northern African and Middle East states and our citizens today queue for visas, although we understand that it might be simpli- www.forum-ekonomiczne.pl 30 fied? How can Ukraine, which is not the EU member embrace the principle of the European solidarity, when all the EU members show considerable discrepancies on such issues as the energy security, EU enlargement, relationships with the United States, attitude towards NATO or towards Russian Federation? With whom should Ukraine sympathize? How Ukraine should react to such projects as the Northern Pipeline on the bottom of Baltic Sea? Should it advocate its supporters or toe the line of its critics?”, asks Rybachuk. Rybachuk wonders also whether it is worth to support e.g. Nabucco Project or to share the objections of those European states which believe that Russia should not be annoyed. Business is a perpetual issue. Each country has got its own business. This applies both to the European Union and Ukraine. Yet, there are egoistic interests of particular groups. The interest groups attempt to present their own interests as all-nation or all-European interests. „Ukraine as a European state shares the European values, although we understand that the process of building mature democratic institutions and development of market economy will encounter certain problems. Ukraine’s path to Europe is not straight but in terms of politics and economy it will be permanent and irreversible. Ukraine is and will be a part of solidary Europe in various aspects”, said Rybachuk. What expression of solidarity may Ukraine refer to in its policy? Ukraine is the first nonEU state, which has voted solidarily with the European Union on the most important foreign policy issues of security since May 2005. In more than eight hundred statements, Ukraine supported European Union’s policy and the viewpoint on the issues of democracy, human rights and election processes in the EU. For instance, Ukraine’s stance and an initiative on resolution of conflicts in Transnistria has been acknowledged as the most successful one by the European Commission. In this way, Ukraine demonstrated that it is not only able to act jointly with the European Union but it may also be an active player in resolving territorial conflicts or the so-called frozen conflicts. Dietmar Stüdemann Rybachuk pointed that solidarity former Ambassador of Germany to Ukraine means that in development of particular issues, solidary states should take into account interUkraine is the only post-Soviet state which demonstrated ests of other states, if these that democracy is not only big word. These are issues pertain to their interests. Ukrainians who proved that the state does not belong to Yet, the European Union does a single politician but to all citizens. This ability to undernot apply such consultation stand that a particular person is responsible for the sociemechanisms. The European ty or the state constitutes a huge step forward, since it Union has got decision-making reveals that even the reprisals which lasted for centuries mechanisms, but they do not failed to change the deeply rooted notion of a nation of provide for the involvement of people who would like to decide on the future of their non-Member States. While making a decision, a nonnation themselves. They are the ones who decide which Member State may give priority direction to follow. They want to be responsible for themto its independent decisions and selves. Responsibility for oneself means also responsibilmay reach its decisions without ity for others and eventually for the country as a whole. It consultation with the European is a crucial change as it provides a basis for a civil society, Union. Rybachuk suggests crewhich has not taken its full shape yet in Ukraine. In the ation of a certain mechanism of long-term perspective, the nation will strive or even tell joint consultation which would its politicians which direction the state should head for. promote search for consensus. Its absolutely unique among the post-Soviet states. In his opinion, this role could be Ukrainians may provide a certain model for other postfulfilled by a political association. Soviet republics. www.forum-ekonomiczne.pl 31 Stefan Füle, Ambassador of Czech Republic to NATO; former Deputy Minister of Defence of Czech Republic Bogdan Zdrojewski, Chairman of Civil Platform, Parliament of Poland Aleksander Sushko, Director of the Centre for Peace, Conversion, and Foreign Policy in Ukraine brought to attention the fact that solidarity comprises several crucial elements. None of these elements may be ignored. It is a mental element, which is of essence. It is possibility to make the countries, nations and elite realize. The second element is a pragmatic one. Political and business elites should be aware that they express certain shared values which do not contradict each other, since the only way to avoid contradictions between interests and values is to promote actions which stem from values. On some issues, Ukraine and the EU act solidarily. Nevertheless, there are many factors which inhibit this process. For instance, deeply archaic thinking, Ukrainian elites’ inability to act solidarily inside Ukraine, certain stereotypes, certain illusions or lack of information on key issues. „I am astonished by the idea that Ukraine should develop its alliance with www.forum-ekonomiczne.pl 32 Steven Pifer, Expert, Centre for Strategic and International Studies, U.S.A Mykola Katerynchuk, Vice-Chairman of Economic Policy Committee, Parliament of Ukraine Belarus. We even should not think about it, not to mention it is not in line with the European Union policy”. „Is Ukraine a part of Europe? Of course it is. In terms of geography and culture. I lived in Ukraine for two years and I never felt to live outside Europe. I have met there all common codes of understanding shared by all the Europeans", said Alain Guillemoles, Journalist, Deputy Chief of Foreign Desk, Le Croix from France. Anatoliy Matviyenko Parliament of Ukraine The present government in Ukraine will never be effective. Present coalition must soon be made disintegrated and replaced with a new one led by a new Prime Minister, a reformer. It is possible that the new coalition will bring new elections, which will cause consolidation of the nation and creation of strong united Ukraine. This would be a manifestation of wisdom, Departure from EuroAsian perspective, a path to Europe. www.forum-ekonomiczne.pl Guillemoles remarked also that the crisis of the European model partially stems from the French voice in the referendum on the European constitution. This results from the fact that it is commonly believed in France that Europe, which has been built by three and then ten and twelve members, is rapidly changing as a result of the enlargement. Simultaneous accession of 10 states to the EU was a kind of shock and proba- 33 Ivan Baba, Editor at Large, Budapest Analyses, former State Secretary in the Ministry of Foreign Affairs, Hangary bly was insufficiently understood by the French elites. There is this common notion of loss of identification. As a consequence, the President of France introduced a new condition to the French constitution. This condition stipulates that each new state aspiring to the European Union must first obtain consent from France via the referendum. This measure will not be applied to Croatia, as Croatia is already recognized a candidate with whom the negotiation process has already been launched. For France to ratify a new treaty, each state which is to become a candidate, will be required to get “yes” in the referendum in France. This means that as far as Ukraine is concerned, this issue will emerge one day. Teodor Melescanu This will be a fight for the future. Vice-Chairman of the Senate, Romanian Parliament „The point is not that we prove Romania is one of the greatest supporters of Ukraine in to ourselves that we are the latter’s aspirations to the EU and this is not a cliché. Europeans. Honestly speaking, I Ukraine's accession to the European Union will be am thoroughly annoyed by the extraordinarily positive for the Union. talks on Kievan Rus and Anna Yaroslavna, who went to France and became a queen. I believe that she was a very bad representative of Ukraine, since France is not fond of Ukraine. It recognizes us as unworthy of EU membership. I do not think that Anna did a particularly www.forum-ekonomiczne.pl 34 Debate: Ukraine’s Path Towards Democracy: Current and Future Perspectives good job there. We do not need to be convinced. We felt, were and will be Europeans”, assumed Yury Shcherbak, Director of the Centre for Global and Area Studies, National University, Kiev-Mohyla Academy in Ukraine. In his opinion „if Ukraine becomes the EU member, this will mean a civilization revolution, a deeper one than all the revolutions we have been through”. The Ukraine will move from the Byzantine, post-Moscow world to the world of Western opinions, which will be an extremely essential change". Shcherbak wonders why in the face of an intensive economic development in the world, not only in Europe but in particular in Asia, Ukraine remains more and more underdeveloped country, which for the fifteen years of its existence was not able to determine the direction of its geopolitical development or the government structure. In Shcherbak’s opinion, we are witnessing how Ukraine is unfortunately becoming an outsider ranking last in many global ratings with its limited freedom, poor struggle against corruption and slight demographic development. Hitherto functioning oligarchic and authoritarian system in Ukraine does not allow an uninhabited participation in globalization processes, expression and utilization of its capital and potential. It does not allow development of a middle class. www.forum-ekonomiczne.pl 35 Shcherbak asks who represents Ukrainian foreign policy today. According to him, such centre of power is non-existent. The President is devoid of his constitutional functions consisting in directing the Ukraine’s foreign policy. „One may hear four different voices as far as Ukraine’s foreign policy go. It is not even that President Kuchma went to Washington and to Moscow issuing two different statements. I know it, because I was there. I am surrounded by the people who say four different things. This is tragic for our country”. Roman Shpek, Ambassador of Ukraine to the EU, reminded that Ukraine and Europe in 1994 signed and in 1998 ratified the Partnership and Co-operation Agreement. This agreement determines the parameters of the contemporary co-operation. It facilitates broad political, commercial and economic co-operation. Each year, there is a summit attended by the President of Ukraine and leaders of the European Union as well as there is held a meeting of the EU-Ukraine Cooperation Council and seven subcommittees which supervise work in various fields of life and activity between Ukraine and the European Union. At each stage of relations between Ukraine and the EU, the European Union developed appropriate policies towards Ukraine. The first policy was developed in www.forum-ekonomiczne.pl 36 Günter Kössl, Nationalrat, OVP, Austria Cornelius Ochmann, Bertelsmann Stiftung, Germany 1998 and this was EU strategy for Ukraine. In 2004, European neighbourhood policy, which applies also to Ukraine, was passed. If one takes a look at these instruments, one will see that to a certain extent they meet contemporary needs. They allow Ukraine to achieve its strategic objective specified by the Parliament, Ukrainian laws and President’s executive orders. Ukraine’s strategic objective is the EU membership. Both Ukraine and the EU are not ready for the Ukraine's membership. The question is how to use the instruments the European Union had used for other countries? „Ukraine is not only a European state, but Ukraine cannot become a slave or a hostage of the European Union's problems. The problems the EU is going through at present", stressed Dietmar Stüdemann, former Ambassador of Germany to Ukraine. There are certain concerns on the part of Europe that the integration problems may absorb too much energy. According to Stüdemann, it is one of the key negotiation issues. Ukraine expects a certain explicitly formulated prospect. Stüdemann believes that Ukraine’s future membership or any other state’s membership for that matter will make no sense, unless the European Union is able to act at the European or global level. Ukraine would not be right if Kiev focused solely on getting "yes" for the prospect of membership. Yet, Ukraine has a right to ask. In his opinion, Ukraine is the only post-Soviet state, which showed that democracy is not only a great word but something which may and must be achieved. These are Ukrainians who proved that the state does not belong to a single politician, the president or the cabinet of ministers. The state is shared by all the citizens. This ability to understand that a particular person is responsible for the society or the state constitutes a huge step forward, since it reveals that even the reprisals which lasted for centuries failed to change the deeply rooted notion of a nation of people who want to decide on the future of their nation themselves. They are the ones who decide which direction to follow. They want to be responsible for themselves. Responsibility for oneself means also responsibility for others Jaroslav Basta and eventually for the country Deputy Minister of Foreign Affairs, Czech Republic as a whole. This course of affairs is of essence. It is a cruEventually, good relations with both the European cial change as it provides a Union and the Russian Federation lie in Ukrainian politbasis for a civil society, which ical elite’s interest. It is the only way to derive benefits has not taken its full shape in from geographical position of Ukraine. The fact that Ukraine yet. In the long-term Ukraine is becoming the bridge between the West and perspective, the nation will strive Russia and not a bone of contention between the both or even tell its politicians which parties is a good news for all of us. direction the state should head www.forum-ekonomiczne.pl 37 for. Its absolutely unique among the post-Soviet states. Ukrainians may provide a certain model for other post-Soviet republics. The Orange Revolution is related to a great responsibility restJacek Kluczkowski ed with Ukrainians and with Ukrainian politicians in particuPolish Ambassador to Ukraine lar. The way Russia treats civic movements results directly from Business groups, which control political parties prevent the situation which arouse in development of competitive economy. They counteract Ukraine. More authoritarian economic freedom as well as development of small and post-Soviet republics fear that medium-sized enterprises. Ukraine’s achievements in this the Orange revolution and what field are insignificant, which however must be credited to came in the wake of it may all political forces, not only those in power but the oppobecome a model to be followed sition as well. by other post-Soviet states. These are sufficient reasons to appreciate Ukraine and its own achievements and to enable it choose its own path. According to Stüdemann, it must be acknowledged that the speed of the reform processes does not live up to Ukraine’s expectations about the European Union. Ukrainians must focus on their political system and make it work right. They must also depart from the struggle for power or competences or who should supervise what etc. Ukrainian constitution must also conform to reality. This should be a priority. „In principle, I advocate the view of the necessity of broadening and accelerating the cooperation with the European Union. After integration of Romania and Bulgaria with the European Union, there are no serious candidates to the European Union. From this point of view, there are any possible favourable circumstances for the European Union to send a positive signal and develop integration policy instruments for Ukraine”, said Oleksij Plotnikov, Deputy Chairman of the Committee on Political Economy, Parliament of Ukraine adding that “the entire Western Ukraine is the EU border, thus the cooperation within the Euro-regions is promising”. Volodymyr Filenko, Deputy Jan Neutze Chairman of Reform and Order Assistant Director, Program on Transatlantic Relations, Party recalled the scenes from Atlantic Council of USA the Independence Square: „I was responsible for preparing NATO members, such as Poland, maintain their efforts and conducting mass actions in and support Ukraine’s course towards NATO. However, Yushchenko's staff. I was even we may discern some tiredness on the part of given a nickname of the camp Washington. This is the key. We must remember that. officer or the field marshal of the Independence Square”. I have When one talks about NATO, one must consider the never regretted that and I never importance of the United States. will. This was perfectly and beautifully organized. The main actor of the events in Maydan was neither Viktor Yushchenko nor Yulia Tymoshenko, not even the field marshals, but the Ukrainian nation, which expressed an eternal desire for freedom, democracy and demonstration of its identity, the European identity of the nation. The most frequently used words in the square were the simple words: Excuse me, please, you welcome. This was a very polite gathering. People showed their superiority over the political elites. People saw their future, the future of the country”. www.forum-ekonomiczne.pl 38 Preparations for a TV debate attended by Bohdan Osadchuk from Free University in Berlin and Jerzy Buzek, MEP, former Prime Minister of Poland Anatoliy Matviyenko, Parliament of Ukraine, is of the opinion that “Ukraine’s most acute problem of today is ‘Bellum omnium contra omnes’, not a war for Ukraine but a war for increasing competences. In 2006, our society was characterized by a social pessimism. Less than 40% expressed their trust in government institutions. Most of them were convinced of a negative direction of changes. We had strong trust in Yushchenko - 80 %. The majority believed the changes followed the desired direction. This was in 2005. Unfortunately, mistakes made by all our politicians without exceptions, destroyed our optimism in the last years. The capital of trust has not been utilized. As for the beginning of a new millennium, Ukrainians seem to be in a negative mood”. According to Matviyenko, the present government in Ukraine will never be effective. Present coalition must soon be made disintegrated and replaced with a new one led by a new Prime Minister, a reformer. It is possible that the new coalition will bring new elections, which will cause consolidation of the nation and creation of strong united Ukraine. This would be a manifestation of wisdom, Departure from Euro-Asian perspective, a path to Europe. „Romania is one of the greatest supporters of Ukraine in the latter’s aspirations to the EU and this is not a cliché. Ukraine’s accession to the European Union will be extraordinari- www.forum-ekonomiczne.pl 39 ly positive for the Union", said Teodor Melescanu, Vice-Chairman of the Senate, Romanian Parliament. Orange Revolution introduce very crucial openness in the internal political dialogue. A majority of parties represented in the Parliament declare that one of the important objectives of Ukraine is its accession to the European Union. Obviously, the European Union may and should keep the door open for Ukraine. Romania will do its best to hold and keep it open, declared Melescanu. Jaroslav Basta, Deputy Minister Volodymyr Bezkorovaynyi of Foreign Affairs, Czech Real Admiral, former Commander in Chief of Navy of Republic is of the opinion that Ukraine Ukrainian foreign policy will not be of political but rather of more pragmatic nature. It will Current government coalition failed to take a stand on attempt to protect its domestic NATO. Those in power chose a path of the least possible interests. This is the only way to political loss: Let the nation choose. Yanukovych opted to understand why Ukrainians wait. He is awaiting the final decision of the society. reject NATO membership, Meanwhile, the society remains underinformed. We have where we would like to see been intensively cooperating with NATO; however, our Ukraine. On the other hand, administrative structures shifted the responsibility for this enables us to understand informing the society to the Ministry of the National why Ukraine is concerned about Defence, which is not capable of performing this task. the EU membership or explains the actions aimed at prohibiting Therefore, this issue remains unsettled, as no one is willprivatization of the energy secing to handle it. At present, NATO representatives fulfil tor. This will make the policy our duties in our country. Thus, if the political forces very transparent. Eventually, intend to lead Ukraine through the NATO door, if NATO good relations with both the is to be a springboard to the European Union, we should European Union and the Russian consolidate political forces to educate and inform the sociFederation lie in Ukrainian politety and eventually prepared people for the referendum. ical elite’s interest. According to Basta, it is the only way to derive benefits from geographical position of Ukraine. The fact that Ukraine is becoming the bridge between the West and Russia and not a bone of contention between the both parties is a good news for all of us. „As an ambassador, I must confine myself to low-key remarks; however, I would like to draw your attention to two aspects”, started Jacek Kluczkowski, Polish Ambassador to Ukraine. In his opinion, a majority of affairs failed, but first and foremost Ukrainians failed to create the political nation, which would comprise East and West of Ukraine. The number of parties is not important, yet it is crucial that they refer to entire Ukraine, not to particular regions. It was not possible to separate business and politics. „We know how destructive in times of Kuchma was the fact that each clan had its own political party. The Orange government policy towards this relationship of business and power was inconsistent. There were attempts to threaten and to reach an agreement. As a consequence, this caused consolidation of a majority of clans and establishment of business influences in politics. It is destructive not only for the politics but also for Ukrainian economy. Business groups, which control political parties prevent development of competitive economy. They counteract economic freedom as well as development of small and medium-sized enterprises. Ukraine’s achievements in this field are insignificant, which however must be credited to all political forces, not only those in power but the opposition as well”, said Kluczkowski. www.forum-ekonomiczne.pl 40 With regard to the issue of creating all-Ukrainian political projects, political parties, Kluczkowski expresses an opinion that the East of Ukraine is characterized by a huge democratic potential among the young generation. Students and not only them, from Donieck or Charkov, want to live in a democratic and at the same time pro-European country, where everything is transparent and honest. Unfortunately, this potential has not been utilized. Top-down shaping of a political nation is perceived by many Ukrainians in the East as exerting pressure, an attempt to shape Ukrainian East in line with the patterns spread in the Western Ukraine. For Jan Neutze, Assistant Director, Program on Transatlantic Relations, Atlantic Council of USA, the return of Yanukovych to power is a great challenge. The President Yushchenko and the Prime Minister Yanukovych subscribe to diverse views on Ukraine’s NATO membership as well as on when and how this process should be carried out. The process is not coordinated by any official authorities. There is no formal coordination for these two dissimilar views. Unfortunately, Ukraine lacks tradition which would encourage two parties to seek compromise, the shortage of which translates into other problems and leads to manifold consequences. Alex Romaniuc, Programme Manager, Westminster Foundation for Democracy, UK Bogdan Zdrojewski Chairman of Civil Platform from Parliament of Poland There is no third way for Ukraine. There is only one clear and straight path. One may consider the pace or the measures, but Ukraine has got no other choice if it wants to remain a democratic country, of which I am deeply convinced. If we really make a choice at this moment, we choose a particular economic system. If we realize the threats for our security, then in my opinion the choice is indeed extremely easy. Ukraine should have been in NATO and the European Union for several years. I hope, this will happen soon and that the dilemmas which arise at times will soon become irrelevant. In the opinion of Neutze, Ukraine had a fantastic chance of getting closer to NATO in 2005. It was a precedent. Unfortunately, Ukraine failed to use it. By and large, as a result of the internal struggle for power or various mutually exclusive statements. Hence, there emerged uncertainty: who handles Ukrainian foreign policy? Who is responsible? In fact, it is neither the Prime Minister nor the President. As a consequence, Ukraine’s general credibility only suffered. “NATO members, such as Poland, maintain their efforts and support Ukraine’s course towards NATO. However, we may discern some tiredness on the part of Washington. This is the key. We must remem- www.forum-ekonomiczne.pl 41 ber that. When one talks about NATO, one must consider the importance of the United States”, remarked Neutze. Hryhoryi Perepelytsia, Director of Institute of Foreign Policy MFA of Ukraine, asks: “Can Ukraine become a European Union member without membership in NATO? If Ukraine was as democratic at the national level as Sweden or Finland, the answer would be yes. Ukraine could be a EU member even without NATO. Nonetheless, such scenario is not probable and I want to attract the attention of the Party of Regions representatives to the fact why it is improbable. The European Union’s stance was very explicit: in short- and middle-term perspective, no prospects of membership. There is a very strange notion. Ukraine does not want to go to Europe through the door, which is already open i.e. the NATO Stefan Füle door and knocks to the door Ambassador of Czech Republic to NATO, former which is locked. At the same Deputy Minister of Defence of Czech Republic time, it cries: Why the door would not open? And if it opens, what will be the reaction of While promoting NATO agenda, we should not really Russia?”. think that it is a choice between Russia and NATO. In NATO I would never endeavour to advise Ukrainians: According to Perepelytsia, all OK boys, we must choose, this or that, you heard about post-socialist countries went to cooperation of NATO and Russia, you know that Russia the European Union through is a strategic element of European security. I cannot NATO. If Ukraine wants to join imagine a situation when Ukrainians join NATO at the the European Union, it should expense of Russia’s security and pose a factual threat to take the same path as its neighEuropean security. bours did. At the same time, Perepelytsia wonders if the new Ukrainian government is ready to support Ukraine’s national values. To what extent can this government comply with the European values? For the time being, Perepelytsia does not discern such determination with regard to either Ukrainian national or European values. Perepelytsia pointed to the custom of respecting Russia which is not interested in Ukraine’s membership in NATO or the European Union, since Russia is developing an individual geopolitical project. Russia is building an imperial project: a single geopolitical centre of the world via re-integration of its space. Ukraine’s membership in the European Union and NATO collides with Russia’s intentions. So what is a tangible scenario if we give up membership in NATO? asks Perepelytsia. This scenario is unambiguous today. This is a scenario of a buffer zone between Russia on one hand and the European Union and NATO on the other. According to Perepelytsia, few Member States are enthusiastic about Ukraine’s accession. With a status of a buffer zone, Ukraine would be a vanguard of stabilization, provided that Ukraine was a strong nationally consolidated state. If such circumstances do not exist, the buffer scenario will unfortunately bring about a great deal of negative consequences. Even if Russia does not join the process actively, there are still political forces in Ukraine which will provoke Russia to integrate Ukraine within the Russian circle of influence. In such circumstances, all Ukrainian politicians should bear in mind that the role of a buffer zone is not beneficial for Ukraine. “We should look back to Poland of 1939 and pre-war Baltic states. What did those countries gained from the scenario of a buffer zone? Unfortunately, this situation may repeat in Ukraine. How to avoid this scenario and which scenario is good for us? Obviously, a www.forum-ekonomiczne.pl 42 good solution appears to be membership in NATO and associated membership in the European Union. This is the most feasible scenario, taking into consideration the external factors; however, simultaneously it is very complex in terms of internal factors, as first we should do a very important homework. First, we must reach the consensus in the entire society. Second, we should reach consensus among the elites. Finally, we must strive to have Ukrainian government and parliament. The way to achieve it is a subject of a distinct discussion. It is much easier to change ourselves than shape the world according to our views", concluded Perepelytsia. Volodymyr Bezkorovaynyi, Real Admiral and former Commander in Chief of Navy of Ukraine Anatoliy Gutsal, Deputy Director, Institute for International Security Problems, Ukraine remarked that if we separated political polemics from the intentional acts of Ukraine, we may establish that Ukraine continuous performance of all programmes pertaining to its NATO membership. Bezkorovaynyi stressed this fact, as we deal with a certain underspecified government policy towards NATO. It is worth mentioning that there is the Black Sea Fleet in the Crimea. The fleet will be stationed in the territory of Ukraine up to 2017. But what then? This issue is puzzling for everyone. The Chief of Staff stated that this does not hamper Ukraine from joining NATO. The question is how Russia will act. There is a threat that the status quo in the Crimea may change at any time. During events in Feodosiya several years ago Russia demonstrated what it is capable of. For instance in Sevastopol, Ukrainian flags were burned and the Hryhoryi Perepelytsia shouts of disgrace with respect Director of Institute of Foreign Policy MFA of Ukraine to Ukraine were heard. Both, former and present Ukrainian We have a custom of respecting Russia which is not intergovernments have not taken any measures to prevent or ested in Ukraine’s membership in NATO or the cease acts disgraceful for European Union, since Russia is developing an individual Ukraine. geopolitical project. Russia is building an imperial proj- ect: a single geopolitical centre of the world via re-integration of its space. Ukraine’s membership in the European Union and NATO collides with Russia’s intentions. So what is a tangible scenario if we give up membership in NATO? This scenario is unambiguous today. This is a scenario of a buffer zone between Russia on one hand and the European Union and NATO on the other. www.forum-ekonomiczne.pl “Current government coalition failed to take a stand on NATO. Those in power chose a path of the least possible political loss: Let the nation choose. Yanukovych opted to wait. He is awaiting the final decision of the 43 Dietmar Stüdemann, former Ambassador of Germany to Ukraine society. Meanwhile, the society remains underinformed. We have been intensively cooperating with NATO; however, our administrative structures shifted the responsibility for informing the society to the Ministry of the National Defence, which is not capable of performing this task. Therefore, this issue remains unsettled, as no one is willing to handle it. At present, NATO representatives fulfil our duties in our country. Thus, if the political forces intend to lead Ukraine through the NATO door, if NATO is to be a springboard to the European Union, we should consolidate political forces to educate and inform the society and eventually prepare people Oleksij Plotnikov for the referendum", stated Deputy Chairman of the Committee on Political EcoBezkorovaynyi. nomy, Parliament of Ukraine According to Bogdan Zdrojewski, Chairman of Civil Platform from Parliament of Poland, there is no third way for Ukraine. “There is only one clear and straight path. One may consider the pace or the measures, but Ukraine has got no other choice if it wants to remain a democrat- I advocate the view of the necessity of broadening and accelerating the co-operation with the European Union. After integration of Romania and Bulgaria with the European Union, there are no serious candidates to the European Union. From this point of view, there are any possible favourable circumstances for the European Union to send a positive signal and develop integration policy instruments for Ukraine. www.forum-ekonomiczne.pl 44 Volodymyr Bezkorovaynyi, Rear Admiral, former Commander in Chief of Navy of Ukraine Hryhoryi Perepelytsia, Director, Institute of Foreign Policy MFA of Ukraine Jan Neutze, Assistant Director, Program on Transatlantic Relations, Atlantic Council of USA ic country, of which I am deeply convinced. If we really make a choice at this moment, we choose a particular economic system. If we realize the threats for our security, then in my opinion the choice is indeed extremely easy. Ukraine should have been in NATO and the Natalia Prokopovych European Union for several Chairman of the EU Integration Committee in the years. I hope, this will happen Parliament of Ukraine soon and that the dilemmas which arise at times will soon Thanks to the Orange Revolution, Ukraine has entered become irrelevant.” on a different, new path. Today, the country is experiencing an entirely different level of democratic relations. The mass media enjoy the liberty of representing their views and opinions about the political situation in Ukraine. A strong influence is the spirit of self-confidence; trust in the strength of our citizens, who nowadays have a completely different attitude towards the authorities and themselves. Today, their behaviour is radically different, they are no longer passive Zdrojewski thinks that for the time being, despite considerable profits and unquestionable achievements, the European Union and NATO form a slightly anarchic structure. The organizations require profound modernization, rapid acceleration, drawing attention to utterly new civilization challenges, redefinition of all situations related to threats, logistics, costs and the decision processes. It would be advisable that Ukraine participate in all these transformation elements which the European Union and NATO are facing. www.forum-ekonomiczne.pl 45 For Zdrojewski, there is no such dilemma whether Ukraine should join NATO first and then the European Union or the other way round. In his opinion, if one wants to achieve a single final effect, the strength of economy will depend on domestic and external state security. Large-scale investments and ability to react to particular situations will be feasible, when both elements are mutually compatible, co-function and complement each other. One must remember that Europe and the world do not consider a dilemma of an out-of-context problem of Ukraine but consider also the solutions to nationality problems in France, Germany, England and Italy. At the same time, it is noticed that Turkey is also aspiring to join the Union as well as that along with the EU enlargement the structure of costs and expenses is changing and that the necessity to make decisions is to be modified. Europe looks forward to Ukraine's decision, conformity and readiness to reach a particular decision at a specified time. Zdrojewski believes that Poland, which is within the structures of the European Union, should not ignore the security of the United States. One cannot say that since the Missile Shield in Poland will serve only to the United States, Poland should remain indifferent, as an ally should not be indifferent as to whether the United States, this powerful ally is secure or not. Zdrojewski expects that the United States will pay attention to Poland, considering Poland’s security and that the United States will not remain indifferent whether Poland is developing, whether it is secure, what systems it uses, what are its abilities to react, Leonid Kozhara what is our energy or IT security Deputy Chairman of Foreign Affairs Committee in like etc, because it is an ally. It is Parliament of Ukraine the same in the case of Ukraine. Poland needs Ukraine as an We have overestimated our capabilities. We thought that ally. “It is very important for us that Ukraine is economically strong and secure; however not only in military terms, since it is one of the elements which is diminishing in importance as far as conventional thinking on security is concerned. We care about politically secure Ukraine, where all the Ukrainian institutions are built on strong foundations”, says Zdrojewski. the victory of the Orange Revolution in Ukraine would imply the treatment of Ukraine by Europe and the rest of the Western Hemisphere as other Eastern European countries. It was expected that Ukraine would be granted a more advanced status than it had before the Orange Revolution. I think also that the new team led by President Yushchenko to power has not been able to realize the leading concepts underpinning the Orange Revolution. I observed all the processes experienced by us directly after the revolution and sometimes I could not believe that they were happening in Ukraine Zdrojewski reminded that Poland strongly supports the full independence of decisionmaking in Ukraine. It was Ukraine which chose its path without regarding whether somebody likes or dislikes it either in Moscow or in Washington. It is also very important to respect the context in which Ukraine is set. There are three states with an action plan intended for the membership and only two with a special framework system of relations. Ukraine is one of these two states. Furthermore, Ukraine is in the group of an intensive dialogue. “While promoting NATO agenda, we should not really think that it is a choice between Russia and NATO. In NATO I would never endeavour to advise Ukrainians: OK boys, we must choose, this or that, you heard about cooperation of NATO and Russia, you know that Russia is a strategic element of European security. I cannot imagine a situation when www.forum-ekonomiczne.pl 46 Ukrainians join NATO at the expense of Russia’s security and pose a factual threat to European security”, said Stefan Füle, Ambassador of Czech Republic to NATO, former Deputy Minister of Defence of Czech Republic. “Finally, I may utter this sacred phrase. Our two-day marathon is heading towards the end. We, the Ukrainian delegation, understood that we are Europeans, we convinced ourselves. Finally, we heard strongly encouraging voices of our friends saying they do not oppose our membership in the European Union. The only thing left is to hear the same from Brussels. Besides, everything is all right. Obviously, this is a joke. I am convinced that during this conference, we had more questions than answers. I think this is very good. We will have something to think over between the following conferences. We have not agreed on many issues; nevertheless we managed to reach the agreement on the issue that Ukraine should become the European Union and NATO member”, concluded Yurii Scherbak, Director of UKMA Centre for Global and Area Studies from Ukraine. www.forum-ekonomiczne.pl Ukrainian Economy and the EU: Partner or Burden? EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE – – – – – – – – – – – – – – – – – – UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM 48 Debates: ● Ukrainian Economy and the EU: Partner or Burden? ● Ukrainian Economic Reforms – Current Situation and Strategic Goals ● European Energy Security and Ukraine: Challenges and Opportunities www.forum-ekonomiczne.pl EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE – – – – – – – – – – – – – – – – – – UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM 49 Ukrainian Economy and the EU: Partner or Burden? Debate: Ukrainian Economy and the EU: Partner or Burden? Is the Ukrainian economy a partner or a burden for the European Union? According to Roman Shpek, Ambassador of Ukraine to the EU, the Ukrainian economy previously did not have the character of an independent state economy, because Ukraine was part of the Soviet Union. For example, its seven great shipyards were not built to meet the needs of Ukraine, but to service the navy of the Soviet Union, including its submarines. “So how to restructure these shipyards without disturbing the social peace, without protests by the nation against structural reforms?” asked Shpek. www.forum-ekonomiczne.pl 50 Ksenia Lyapina, Member of Parliament, Supreme Council of Ukraine Vasyl Zahorodniy, Head of Department, Ministry of Economy of Ukraine In the early days of the independence of Ukraine, trade with Russia accounted for 70% of total foreign trade turnover. Currently, the Ukraine’s primary trade partner, at the level of 31%, is the European Union. At a slightly lower level – 30% – is the Russian Federation. Behind that are China, India, the Middle East and the American continent. Ukraine is a major outlet for the EU countries as regards the sale of foodstuffs, and investment, Ksenia Lyapina and it should be noted that its Parliament of Ukraine potential has steadily been increasing. The stable macroeconomic situation, single digit Ukraine is today a partner, who is actively oriented inflation levels, controlled towards Europe. The proof of Ukraine’s real intentions budget deficit, and continuing is, among other things, the growing commercial exchange economic growth prove that with the European Union. Ukraine is a partner worthy of attention. In the years 1999-2006 commercial exchange between the European Union and Ukraine increased fourfold, primarily to the advantage of the EU member states. Exports of Ukrainian goods increased threefold, and imports of European goods four and a half times. At present, Ukraine has a negative balance of commercial exchange with the EU. www.forum-ekonomiczne.pl 51 The macroeconomic situation is conducive to an influx of private investment. So, what are investors worried about? According to Shpek it is, among other things, the lack of transparency and weakness of the judiciary, which fails to guarantee full protection of investor rights in the event of a dispute, the complex tax legislation and the lack of senior managers. “I am a member of this political group, which is in favour of European integration,” stated Ksenia Lyapina, from the Parliament of Ukraine. In her opinion, “Ukraine is today a partner, who is actively oriented Roman Shpek, Ambassador of Ukraine to the EU towards Europe. The proof of Ukraine’s real intentions is, among other things, the growing commercial exchange with the European Union.” Lyapina is convinced that the main factor in favour of Ukraine’s European integration should be, first of all, Ukrainian business. Ukraine and Russia are the only countries of the former Soviet Union that have been able to build up their own private capital. Other countries have only state capital. “The great Ukrainian private capital is pro-European and is actively integrating with the EU,” stated Lyapina. European investment in Ukraine has not yet responded either to the potential of Ukraine, or to the capabilities of European capital. But there are certain premises, which allow us to say that this investment will grow. Several large European banks have entered the Ukrainian market through the acquisition of Ukrainian banks. Talks are also being held on the market entry of large insurance companies. An attractive infrastructure has already been prepared in Ukraine. Krzysztof Pawi¡ski Maspex Wadowice I can notice a process of mutual drawing together, which is irreversible in my view. It is irreversible because it is favourable for both parties. Obviously, both the economy of the European Union, including that of its individual member states, and the Ukrainian economy benefit from reciprocal cooperation. The EU has already become the leading economic partner of Ukraine. I think this is a steady trend. It is important also not to forget that Ukraine is a transit country. However, its potential in this regard is being used only to a small degree, estimated at approximately 10%. For example, representatives of the business circles in the countries of Central Asia have unanimously signalled that they perceive Ukraine as a potential bridge between Central Asia and Europe. They are interested in the development of Ukraine’s transit capabilities, so that Ukraine is not seen merely as a buffer state between Europe and Russia, but as a bridge between Europe and the countries of Central Asia. www.forum-ekonomiczne.pl 52 “The transit potential of Ukraine is interesting not just for the Ukrainians; the whole world is interested in it, and not just Europe. However, Ukraine will not manage to develop this potential on its own. We should actively attract European investment in this branch of our economy,” said Lyapina. One should not forget also that the development of Europe requires an increased capacity for gas transfer. But, how can it be increased? One possibility is to invest in alternative sources; another is to enhance the capacity of the already existing Krzysztof Pawiƒski, President of Maspex, Poland systems. Nevertheless, it is betFlorin Pogonaru, President of Romanian Businessmen’s ter to invest in the existing gas Association transport infrastructure, since Ukraine is using its transport capacity very inefficiently at present. Maspex Wadowice is a company that has been present in Ukraine for several years. Its president, Krzysztof Pawiƒski, noted that the Ukrainian economy is bringing the country closer to the European Union. “One should not conclude that we are dealing with an economy that fits the economic criteria of the European Union, although I can notice a process of mutual drawing together, which is irreversible in my view. It is irreversible because it is favourable for both parties. Obviously, both the economy of the European Bohdan Zahorodny Union, including that of its indiDirector, Department of Foreign Investment, Ukrainian vidual member states, and the Ministry of Economy Ukrainian economy benefit from reciprocal cooperation. The EU Ukraine has sufficient scientific-technical and economic has already become the leading economic partner of Ukraine. I potential, in order to ensure economic growth. The purthink this is a steady trend.” pose of European integration is precisely to build a free- market economy, and develop the country according to principles that meet the world standard. Ukraine, according to Pawiƒski, with its own structure of production costs is a perfect place to start production. What is seen from the political point of view in the EU countries as a threat, for example the issue of access to the labour market, looks different from a business perspective. “Considering the labour market’s flexibility, access to it for Ukrainian employees in the European Union enhances the flexibility of this market, makes it more efficient and, as a result, it is beneficial. Certainly, the point of view of business is different from the political view of this issue.” Ukraine has, according to Bohdan Zahorodny, Director of the Department of Foreign Investment at the Ukrainian Ministry of Economy, sufficient scientific-technical and economic potential, in order to ensure economic growth. The purpose of European integra- www.forum-ekonomiczne.pl 53 Petro Poshenko, Chairman of the Supervisory Board, National Bank of Ukraine, Chairman of the Finances and Banking Committee, Parliament of Ukraine tion is precisely to build a free-market economy, and develop the country according to principles that meet the world standard. According to the Ministry of Economy, today Ukraine can guarantee its economic stability. The economy is at the stage of rapid growth. However, the scale of foreign investment is not satisfactory. There is a lack of, inter alia, technical infrastructure, business incubators, and technology parks. Experts from the Ukrainian Ministry of Economy are also working on the concept of public-private partnership. This is aimed at preparing organizational and institutional mechanisms that foster a merger of public and private capital in order to realize major projects related to both production, and to scientific and technical research, and even to municipal services. In the beginning of the 1990s, according to Petro Poroshenko, Chairman of the Finances and Banking Committee of the Ukrainian parliament, Ukraine was best prepared for market reform. It had the highest level of investment attractiveness. At the end of the 1990s, Ukraine was in a state of political crisis and on the verge of bankruptcy. Systemic www.forum-ekonomiczne.pl 54 changes in Ukraine started in 2000, when the country recovered from its debt crisis and a series of economic reforms were carried out. The then government of Victor Yuschenko succeeded, for example, in reducing the state’s public debt and in ending delays in the payment of salaries. Poroshenko said he did not agree with those assessments that claim that recent elections showed public disenchantment with the orange party. In his view, more than 50% of citizens voted for democratic values. “The governing coalition of democratic forces succeeded in enacting a whole series of laws, which provided for Ukraine’s accession to the World Trade Volodymyr Polokhalo, Deputy Chairman of Polish-Ukrainian Parliamentary Group, Parliament of Ukraine Organization. The drafts of the laws connected with the accession to the World Trade Organization had already waited for two years. Within a month, we fulfilled all the conditions laid down for Ukraine by the WTO. It was a major achievement attributable to the Ukrainian parliament in the area of economy,” asserted Poroshenko. The Chairman of the Finances and Banking Committee of the Petro Poroshenko Ukrainian parliament pointed Chairman, Finances and Banking Committee, Ukrainian also to the extremely low comParliament petitiveness of the Ukrainian economy. Discussions on this issue accompanied the accesThe coalition, which governs in Ukraine at present, is an sion of Ukraine to the World unnatural coalition, and certain directions of the introTrade Organization. Will duced reforms confirm me in this opinion. However, I can Ukraine be able to stand up to confirm that today, in none of the votes cast was the comthe competition? Another probmunist party driven by its ideological motives. I am also lem is the high level of energy absolutely convinced that forming an anti-crisis coalition consumption of the Ukrainian has led to a crisis, unless there was already a crisis earlier. economy, the heavy burden of the tax regime, the inefficient system of tax collection, the low level of worker efficiency, and also the relatively limited salary incentive. Members of Parliament think this is the outcome of the existing minimum and average pay levels. Poroshenko also expressed concern with the appearance of external corporate debt and the decreasing profitability of farms. “This year, it will be particularly evident on farms. I think that in two months we will experience an economic crisis in agriculture, because a considerable part of the farms, because of delays in the realization of budgetary liabilities towards the agricultural sector, will be forced to declare bankruptcy.” www.forum-ekonomiczne.pl 55 Jan Mladek, Director of the Institute for Applied Economics, former Aide to Prime Minister of the Czech Republic Jeffrey Franks, Senior Resident Representative, IMF “Certainly, I think that the coalition, which governs in Ukraine at present, is an unnatural coalition, and certain directions of the introduced reforms confirm me in this opinion. However, I can confirm that today, with full respect towards the communist ideology, in none of the votes cast was the communist party driven by its ideological motives. I am also absolutely convinced that forming an anti-crisis coalition has led to a crisis, unless there Jeffrey Franks was already a crisis earlier. I Senior Resident Representative entirely disagree with those who claim that Ukraine is the poorest Structural reforms are actually only partially realized in country in Europe. As an econoUkraine at the moment. If we look at any reports from the mist and a person who is intertransition period prepared by either the EBRD, or the ested in statistical data, I could International Monetary Fund in different areas, we can consay that the present day Ukraine clude that structural transformation indices are still much is one of the most dynamic counbelow the average for the CEE countries, and also below the tries in Europe, to a great extent thanks to internal demand. index applied by the EBRD in the case of the South Unfortunately, this tendency has European countries and the Baltic States. www.forum-ekonomiczne.pl 56 been considerably reduced,” stated Poroshenko. Ukrainians, according to Jeffrey Franks, a Senior Resident Representative, IMF, should think how to restructure their economy, to make it competitive not just in this decade, but also in the coming ones. Franks proposed also that it is worth looking closely at the countries that have recently become EU members. They can also help Ukraine by showing the way, for example, in which types of reforms should be adopted in order to follow the same path. “Structural reforms are actually only partially realized in Ukraine at the moment. If we look at any reports from the transition period prepared by Oleksij Plotnikov, Deputy Chairman of the Committee on Political Economy, Parliament of Ukraine either the EBRD, or the International Monetary Fund in different areas, we can conclude that structural transformation indices are still much below the average for the CEE countries, and also below the index applied by the EBRD in the case of the South European countries and the Baltic States,” said Franks. “My organization sends recommendations, but we are not Jan Mladek allowed to impose any set of Director of the Institute for Applied Economics, former reforms on Ukraine. It has a Aid to Prime Minister of Czech Republic very inexpensive access to financial resources, and hence the world has no opportunity of For the majority of EU countries, so-called reform of the enforcing the reform process. common agricultural policy should happen in 2009 and it What does it mean? It means is bound to be a complete nightmare. But without solvthat pressures for reform and ing this issue we can forget about any realistic prospects permission for the reform of Ukraine’s membership of the EU. process must come from Ukraine; from the Ukrainian citizens themselves, and they will not come from either the IMF, or the World Bank. If the Ukrainian citizens introduce these processes, I am sure that the International Monetary Fund, the EBRD and other organizations will be satisfied with them. Yet, these decisions must be made by the Ukrainian citizens for their own benefit,” added Franks. Jan Mladek, Director of the Institute for Applied Economics and a former aid to the prime minister of the Czech Republic stressed the enormous agricultural potential of Ukraine: Vast areas of arable land; long farming traditions; an agricultural sector that could feed half of Europe. www.forum-ekonomiczne.pl 57 “It is a great task for the politicians dealing with the agricultural sector. Because, from another point of view, it is a disaster, since Europe has a surplus of agricultural products and attempts to tackle this issue, to some extent by exporting agricultural products even outside of Europe. We have had such an experience in the Czech Republic and in Poland. From the perspective of global welfare I must say that it is a catastrophe. Frankly speaking, I do not mean just Europe, but also the United States because both these organisms are destroying, as a matter of fact, the agricultural sector in the Third World countries, by selling them cheap goods and not allowing for the development of their own sector; therefore this is expected to become a significant issue also Mychaylo Gonchar, Expert, NOMOS, Kiev Artur Zawisza, Member of Parliament, Poland for Ukraine. This issue must absolutely be subject to negotiations with the EU. The EU should demonstrate some generosity. It seems to be very difficult, because for the majority of EU countries, so-called reform of the common agricultural policy should happen in 2009 and it is bound to be a complete nightmare. But without solving this issue we can forget about any realistic prospects of Ukraine’s membership of the EU,” said Mladek. It is unclear, which farmland Vaclav Bartuska should be privatized, and who Ambassador-at-Large for Energy Security, Ministry of should benefit from its privatization. Should the focus be on Foreign Affairs, Czech Republic enterprises, or family farms? There is no clear model of the Energy security can be the biggest barrier between the methods for performing such a European Union and Ukraine, because Russia is at the privatisation, or what its purpose moment looking intensively for ways of bypassing should be. “If we privatize free Belarus and Ukraine. of charge, for little money, we will have problems with trade, because there are generally no good solutions in that case. If someone receives land, because he pretends to be a farmer and later resells this land, then it will be against some regulations. Therefore, the issue of privatizing land is indeed very complicated and difficult, but it must be resolved somehow,” remarked Mladek. According to Vaclav Bartuska, Ambassador-at-Large for Energy Security from the Czech Ministry of Foreign Affairs, energy security can be the biggest barrier between the European Union and Ukraine, because Russia is at the moment looking intensively for ways of bypassing Belarus and Ukraine. The European Union has two options at this www.forum-ekonomiczne.pl 58 time; one is to continue asking for transit via Ukraine and Belarus; and the second is to agree on other routes. At present we are moving towards diversifying both the routes and the resources. These two elements are a requirement of the EU – but new sources and new transport routes may be a hard blow for Ukraine. “Issues of energy security and the further development of energy projects are of primary importance. It is interesting that a representative of the Czech Republic is moderating this meeting, because the example of the Czech Republic is a Vaclav Bartuska, Ambassador-at-Large for Energy Security, model for Eastern European Ministry of Foreign Affairs, Czech Republic countries as to how energy security projects connected with the diversification of supplies should be carried out,” said Mychaylo Gonchar, Expert with NOMOS, Kiev. Mychaylo Gonchar Expert, NOMOS The serious funds obtained by Russia from oil and gas exports exert pressures on the minds of the Kremlin politicians. In 2006, Russia exported weapons worth USD 6 billion, while receipts from oil and gas were USD 139.4 billion. There is no need for further commentary. These funds are not always obtained in a legal, direct way. Often they illegally, indirectly realize a certain strategy of the Russian authorities. In the preamble to the energy security policy of Russia it is written that its energy resources allow Russia to pursue its internal and foreign policies. Many people say that in the event of low oil and gas prices, Russia can be a supplement to the resource base of Europe. And in the event of high prices for these carriers, Europe can be an industrial addendum to Russia. It is a joke, but it reveals a significant truth. In 1995, the Czech Republic decided to build an energy system and plan energy supplies, and it carried out this project within a year. In this way the country was insured against unexpected problems with the supply from the East. The Czech Republic has also established a strategic stock of oil, according to the directives of the European Union and other, strategic documents. At present the stock level indices are higher than expected, e.g. oil reserves are not expected to last for 90 days, but for 105 days. The Eastern peripheries of the enlarged European Union have traditionally relied on Russian energy resources. “The serious funds obtained by Russia from oil and gas exports exert pressures on the minds of the Kremlin politicians. In 2006, Russia exported weapons worth USD 6 billion, while receipts from oil and gas were USD 139.4 billion. There is no need for further commentary. These funds are not always obtained in a legal, direct way. Often they illegally, indirectly realize a certain strategy of the Russian authorities. In the preamble to the energy security policy of Russia it is written www.forum-ekonomiczne.pl 59 that its energy resources allow Russia to pursue its internal and foreign policies. Many people say that in the event of low oil and gas prices, Russia can be a supplement to the resource base of Europe. And in the event of high prices for these carriers, Europe can be an industrial addendum to Russia. It is a joke, but it reveals a significant truth,” stated Gonchar. The accession of Bulgaria and Romania to the EU structures resulted in the Black Sea coast being moved within the EU borders. It is important for the European Union to prepare an integral development proOleksander Todiychuk, Coordinator of the UE- Ukraine gramme for the exploration of Energy Programmes, European Commission, former Director of shelf deposits in Bulgaria, UkrTransNafta Romania and Ukraine. Ukraine’s sector holds the main reserves, but the country does not have adequate technology for deep-water gas extraction. According to Gonchar, the European Union has made a Artur Zawisza serious mistake, when the direct Member of Parliament, Poland dialogue Brussels - Astana, Brussels - Tashkent was transUkraine should be a part of the overall energy security formed into dialogue between Moscow and Brussels. It meant system. However, a real problem is that we can no longer Russia was acting as a reprebe sure what would be the actual effect of Ukraine joinsentative of Central Asian intering the European security system. How many genuinely ests. Brussels has become Ukrainian solutions would be contributed to the aware that the decision was European security system and how many of them would wrong. But it is possible to corbe borrowed by Ukraine, but in fact originate from rect this approach. The Russia. European Union has already taken the first steps in this direction by signing memoranda with Kazakhstan and Azerbaijan on strategic energy cooperation. Now, in the situation where Russia is seeking out the energy resources of Central Asia, it is important to propose cooperation packages for all the countries of that region, first of all, for Turkmenistan and Azerbaijan. This means that research should be conducted to prepare new deposits, and a consortium should be established, because individual companies will not be able to compete with Gazprom. The construction of new routes for gas transport to Europe should be added, and the entry of Turkmenistan’s operators to the European market should be safeguarded. An independent gas transport system should be built, which will be independent from the prevailing economic conditions and the overall situation in Russia. This is not contradictory; rather it entirely complements the existing NABUKO project, which in the wake of the problems with Iran has become more and more oriented to the Caspian Sea deposits. www.forum-ekonomiczne.pl 60 Banquet of the City of Wroc∏aw Gonchar noted that many countries in the European Union support the formula: Energy assets in the European Union for Russia in return for access to deposits in Russia. Some people in Ukraine also back this formula. “This formula looks so great and fair only in the beginning. In reality it will always be a game, and the final result will be positive for Russia, because the third component, namely transport, is not considered. Transport of energy in Russia is a monopoly. Control of oil transport also gives control over extraction and consumption. Yet, this formula is very tricky. Without the demonopolization of these issues in Russia and also without the adoption by Russia of the European Energy Charter, there can be no equal partnership between Russia and Brussels. This should be understood both in Brussels and in Kiev. Some people say that by creating a very loss-making oil and gas infrastructure, Russia loses money. In reality, this is not so. It allows Russia to manoeuvre the flows of energy and to create artificial deficits and increase prices, if there are such needs,” asserted Gonchar. Poland and Ukraine are countries, according to Polish member of parliament Artur Zawisza, which are only too aware of the lack of diversification of energy supply sources. Due to both historical and present experiences, Poland has made energy security a primary focus of attention in the European debate. Even if this topic was present earlier in different debates from time to time, it is only thanks to the issue being raised as a key topic by the Polish side that the European elite became aware of the need for systemic and long-term solutions. www.forum-ekonomiczne.pl 61 Ukraine should be a part of the overall energy security system. Poland is even attempting to act as an advocate for Ukraine in Europe and further, hopefully as soon as possible, in the European Union. However, a real problem, according to Zawisza, is that we can no longer be sure what would be the actual effect of Ukraine joining the European security system. How many genuinely Ukrainian solutions would be contributed to the European security system and how many of them would be borrowed by Ukraine, but in fact originate from Russia. This is a topic of on-going discussion. Certainly there would be some risk, and it needs to be minimized. “Ukraine could be and should be a very important, steady component of energy security in Europe, but how much this is possible depends heavily on the progress of events in Ukraine,” stated Zawisza. Arkady Moshes Ministry of Foreign Affairs, Finland The EU must overcome the egoism of its national energy monopolists and liberalize the market. It is clearly absurd that there are gas pipelines from Russia to Germany and gas pipelines from Algeria to France, but no pipelines between Germany and France. Russia, according to Oleksander Todiychuk, Coordinator of the EU-Ukraine Energy Programme from the European Commission, and former Director of UkrTransNafta, is trying to process the majority of the oil on its territory, in an attempt to bypass Ukraine. Russia has already stated officially that in the future gas will be transported via the Baltic and Black Seas, a process that has already begun. Kazakhstan is feeling quite uncomfortable between China and Russia, and is trying to strengthen its position by consolidating relations with the European Union in reliance on the Caspian Sea connections, which go via the Transcaucasus and Ukraine. “Most importantly Ukraine should support in these negotiations the position of the European Union and the United States; so far we have not succeeded in this, although we can feel the solidarity of the Polish side. Perhaps someone might not remember it, but we do remember that Poland opposed the building of a part of the gas pipeline, which was planned to bypass Ukraine. This had an effect. I regret very much that some members of the government in Ukraine during the crisis in Belarus stated that Ukraine was willing to permit the bypass of Belarus and Poland. Fortunately, the highest state officials rejected this possibility,” asserted Oleksander Todiychuk. The main problem for Ukraine, according to Todiychuk, is that today it is at a crossroads, on the border between political systems. Ukraine’s policy line will also depend on which part of the world it supports. “If Ukraine becomes a potential NATO member and at least an associated state of the European Union, we would need diversification. If not, we would invest money in Russia, which is a source of our problems today. The energy challenges that we face are, first of all, connected with the necessity for a decision, to be taken as fast as possible, if only provisionally, on the place of Ukraine in the European structure, which will automatically provide an answer to a number of questions regarding energy projects. This is also expected to strengthen Ukraine and the European Union,” stated Todiychuk. The coordinator of the EU-Ukraine Energy Programme from the European Commission thinks that Ukraine can also be helpful in providing strategic reserves of both oil and gas, something that has been confirmed by the European Union. A number of old gas deposits are located in the west of Ukraine. With only a small investment they can become powerful gas reserves. They are located practically on the border of the www.forum-ekonomiczne.pl 62 European Union. Access to the privatization of the infrastructure to Western European countries, who could introduce such an investment, which would effectively counterbalance the influence of Russian companies, would allow Ukraine to find the right place for itself in the structure of European energy security. Like the majority of EU countries, Romania is not self-sufficient in supplying its energy needs. The weight of energy as a strategic element is obvious. For Petre Ghibu, a Counsellor to the President of the Romanian Businessmen’s Association, it is important to consider energy efficiency. This is much more important for such a country as Romania, developing on the basis of the previous system which, as in many neighbouring countries, was heavily biased towards heavy industry and which consumed inefficiently Oleksander Todiychuk enormous amounts of energy. Coordinator of Energy Programmes the UE- Ukraine, Therefore, it is very important to increase awareness of energy European Commission, former Director of efficiency. This energy awareUkrTransNafta ness is also a very important energy source, particularly in If Ukraine becomes a potential NATO member and at countries that must undergo least an associated state of the European Union, we extensive and comprehensive would need diversification. If not, we would invest money reforms to restructure those in Russia, which is a source of our problems today. The industrial sectors that have very energy challenges that we face are, first of all, connected high energy consumption. with the necessity for a decision, to be taken as fast as Arkady Moshes from the Finnish possible, if only provisionally, on the place of Ukraine in foreign ministry believes that Europe needs to regain its selfthe European structure, which will automatically provide confidence. In his view, with oil an answer to a number of questions regarding energy as a main world commodity projects. This is also expected to strengthen Ukraine and along with alternative fuels and the European Union nuclear energy, we have no shortcomings in the area of energy at all. Mutual energy dependency between Russia and the European Union is a fact. Russia no longer intends to sell more of its energy to the EU than the Union wants to purchase. Studies have shown in a very convincing way that it is impossible for Russia to reorient its exports eastward to the Asian markets. Certainly, there will be a certain diversification, but India is not an option, and the Chinese market is much, much smaller. No matter if it is economically profitable or not, Russia will be selling to Europe. In his opinion, the EU must overcome the egoism of its national energy monopolists and liberalize the market. It is clearly absurd that there are gas pipelines from Russia to Germany and gas pipelines from Algeria to France, but no pipelines between Germany and France. Energy security, according to Marcin Sienkiewicz from Wroc∏aw University, should not equate only with crude oil and natural gas. The issue is far more complex. The Czech Republic, Ukraine and Poland have certain energy resources – namely hard coal – which they even export, and they are, at least in the case of Poland, in the top ten coal exporters in the world. “Poland, the Czech Republic and Ukraine have a surplus of hard coal. Their power sectors, especially the Polish one, we can say, are based on hard coal and brown coal. Should we not think of taking joint initiatives as regards preparing new technologies and the more efficient use of this fuel, which, as opposed to oil and gas, is the least calorific?” reflected Sienkiewicz. www.forum-ekonomiczne.pl Organizer EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE – – – – – – – – – – – – – – – – – – UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM 64 Forum Manager Since its establishment in 1993 the Eastern Institute (full name: the Institute for Eastern Studies Foundation) has been engaged in activities in the field of cooperation among European states, in particular, of Central and Eastern Europe. Numerous projects carried out by the Institute, the main of which is the Economic Forum in Krynica, contribute to establishment and development of political, economic, cultural and scientific ties among the states of the region. In order to elaborate on the debates held in Krynica at greater length, the Institute organizes special conferences dedicated to individual regions, which are attended by prominent politicians and experts: ● Europe – Russia Forum ● Europe – Central Asia Forum ● Europe – Ukraine Forum ● Energy Forum ● thematic debates ● presentations at the European Parliament The Forum’s Programme Council, which shapes the content and the programme as well as sets the course of development for the Forum, supports the Eastern Institutes’ activities pertaining to organization of the Forum. The Council consists of renowned politicians and economists. Additionally, the Institute issues numerous publications, including New Europe. Report on Transformation, which so far has been brought out four times. The fifth issue is still being prepared. There have also been discrete reports on Russia and Central Asia. The Eastern Institute arranges trainings and study visits as well as provides internships for people form Russia, Ukraine and Byelorussia in renowned Polish companies. Furthermore, the Institute awards scholarships to talented students from Eastern Europe. www.forum-ekonomiczne.pl EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE – – – – – – – – – – – – – – – – – – UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM 65 A bridge between East and West ■ The Economic Forum in Krynica has become an important spot on the political map of the world and probably the only one, where the East meets the West on such a large scale. ■ Following the EU enlargement, the Forum came up with a new format and introduced a new quality of relations between East and West. ■ Krynica provides a range of Europe-wide opinions in the debate on shaping the EU’s foreign policy. ■ The Forum’s agenda covers over 110 debates and presents a number of analytical reports, some of which are published by the Forum, for instance New Europe. Report on Transformation. José Manuel Barroso President of the European Commission I appreciate the initiative launched by the Economic Forum, as it allows its attendants an opportunity for a dialogue and discussion, the exchange of opinions we need so much to understand the world we live in, the world that evolves towards growth we had hardly imagined yesterday. Meeting of Visegrad Group www.forum-ekonomiczne.pl 66 A meeting place ■ The Economic Forum is a renowned event in Central and Eastern Europe. Press say it is a place to be in. ■ The Forum allows a direct contact with people from the front pages of newspapers and magazines. ■ Krynica Spa Promenade is the largest meeting room in Central and Eastern Europe. ■ The Forum is attended by more than 1800 guests from nearly 60 countries from Europe, Asia and America, including presidents, prime ministers, ministers, heads of central banks, stock exchanges and government agencies as well as numerous business representatives, economic and non-governmental organisations. ■ The Economic Forum is reported by more than 350 journalists from 150 Polish and international editorial teams, dailies and periodicals, TV and radio broadcasting companies, information agencies as well as web portals. ■ The Forum offers an opportunity for joint-projects pertaining to adaptation of the existing provisions of law to the changes in management and operation of enterprises in a new reality. ■ The event allows presentation of legal solutions taking into consideration the impact of new technologies on the functioning of the economy. ■ Information acquired during the Forum enables enterprises to determine suitable investment policies, diminish risk and increase the security of the invested assets. ■ Forum allows its attendants to get familiar with new trends of the economic development. “A Question of Europe’s Future”, a debated attended by former presidents of Lithuania, Slovakia, Poland and Slovenia During the Forum, Krynica Spa Promenade is the largest meeting room in Central and Eastern Europe Vivianne Reding EU Commissioner for Information Society and Media www.forum-ekonomiczne.pl Europe faces a feasible opportunity to compete against the USA, China and India. The main European advantages include established global trends in the area of new technologies and nanotechnology as well as a high quality of life, lack of social unrest and cultural diversification. 67 Europe – Russia Forum Meetings like Europe – Russia Forum provide an impulse for the revision for both participants of the Forum. Regarding the assessments and values, the elites of Russia and Europe cannot speak different languages about the same events. The EU and Russia need comprehensive cooperation. At the beginning, it is worth analysing the mutual significance of the EU and Russia as strategic partners. Europe – Russia Forum is attended by representatives of political parties, heads of central institutions, representatives of academic centres, entrepreneurs and journalists from Russia and the EU countries. According to Sergey Yastrzhembsky, the Russian President's aide for relations with the EU, Russia is not afraid of the EU’s enlargement. The European Union attracts other countries, because it presents a modern economic model. Russia wants to develop relations with the EU as far as the EU itself is ready. We would like to develop our relations in the normal course of action. However, we are afraid that the EU is not ready for it. Europe is not able to adopt a unanimous stance towards Russia. Pierre Lellouche President of the NATO Parliamentary Assembly A Plenary Session of II Europe – Russia Forum in Vilnius, attended by Sergey Yastrzhembsky, the Russian President's aide for relations with the EU, Urban Ahlin, chairman of the Swedish Parliament's Foreign Affairs Committee, Volker Rühe, former Minister of Defence of the Federal Republic of Germany, Pawe∏ Zalewski, The Chairman of the Committee of Foreign Affairs of the Sejm (Lower Chamber of the Parliament) of the Republic of Poland. www.forum-ekonomiczne.pl 68 Europe – Ukraine Forum The European Union constitutes an enormous political and economic organism. In spite of internal problems or common heated arguments among its members, the EU has emerged as a significant element of global order. Regardless of the emotional attitude towards the European Union, it provides a vital reference point for a number of countries and regions, particularly its neighbours. This applies to both political and economic aspects of the unification process. Viktor Yanukowych, Prime Minister of Ukraine and Jaros∏aw Kaczyƒski, Prime Minister of Poland Viktor Yushchenko The President of Ukraine www.forum-ekonomiczne.pl Volodymyr Makucha Minister of Economy of Ukraine The Prime Minister of Ukraine, Viktor Yanukovych announced that “Ukraine is not going to shift the course of policy, set by the former government, with regard to European integration and cooperation with NATO. The reforms are to be implemented with even greater determination. We are convinced that collaboration between the government and the parliament will allow us to enact necessary laws. We are far from Euro-romanticism but instead we focus on Euro-pragmatism. We are going to take decisive actions to transform our country into a real European country. We want to build Europe in Ukraine”. 69 Europe – Central Asia Forum Europe – Central Asia Forum comprises several debates attended by representatives of political elites, heads of central institutions, representatives of business and media from Europe and Kazakhstan, Uzbekistan and Tajikistan. The importance of Central Asia in global politics has been significantly growing in recent years. We need uninhibited dialogue on how Europeans and Central Asians need each other and how the may help each other. The region’s rich oil and natural gas deposits are of strategic importance to the world and should be regarded as alternative sources of fuel supplies. This was one of the issues discussed during the meetings. Others included cooperation and consensus, political and economic cooperation of Central Asia, development of civil society institutions, energy security, religious extremism in Europe and Asia, war on terrorism, Islamic fundamentalism and international organized crime. Erkin Tukumov Head of Central Asian Foundation for Developing Democracy Danuta Hübner EU Commissioner for Regional Policy Rapil Zhoshibayev Deputy Minister of Foreign Affairs of Kazakhstan Sergey Dyachenko Deputy Chairman of the Kazakh Parliament Andronius Ažubalis Deputy Chairman of the Committee for Foreign Affairs of the Parliament of Lithuania www.forum-ekonomiczne.pl 70 Energy Forum Security of energy supplies and energy raw materials is one of the key issues of contemporary European policy. Decisions as regards this subject to be made by the EU must take into consideration interests of all Member States including new countries. The EU’s energy policy should be based on the rule of the whole EU’s solidarity and loyalty as regards relations with Russia, which is so strongly articulated by the new members. Mirek Topolanek, The Prime Minister of Czech Republic Owing to its oil and gas deposits as well as attempts to take over control over distribution network, Russia uses energy as a political tool for the achievement of its geopolitical objectives. Pressure exerted by Russia causes a great deal of concerns. Therefore, the EU should not stop using and searching for various sources of energy supplies. To quit these searches would be a major mistake. A mistake that is made once in a century, but which brings grievous consequences. Vaira Paegle Chairman of the Committee for Foreign Affairs of the Parliament of Latvia www.forum-ekonomiczne.pl Edward Chow Senior Fellow, Centre for Strategic and International Studies, USA Jelena Telegina A Member of the Board of Association of Russian Crude Oil Exporters, Institute of Energy and Politics, former Minister of Fuels and Energy of Russian Federation Flynt Leverett A former advisor of Condoleezza Rice on Egypt, Israel, Saudi Arabia and Syria. He is perceived as one of the most influential authors of George W. Bush’s policy 71 School of the Economic Forum Whilst fulfilling the mission of the Economic Forum, the Eastern Institute launched also activities targeting at education of modern apolitical public administration officers. We believe that the effective state and local government administration is essential for introducing reforms and fast growth in the countries of transition. School of the Economic Forum aims at social and political education as well as cooperation and development of trust among European nations. The project is primarily addressed to students and young activists from NGOs as well as representatives of administration and local government. The partners of the School include: Office of the Commissioner for Civil Rights Protection, Institute of Russia and Eastern Europe (Jagiellonian University), International Cultural Centre of Cracow, Department of Local Government Law (Jagiellonian University), Voivodship of Ma∏oplska and local administration institutions. School curriculum includes: ■ Practices of European local governments ■ State vs. local government administration ■ Decentralization of public administration ■ Local government vs. local policy and political parties ■ Development of public-private partnership in communes ■ Participation of citizens in public authorities ■ Methods of stimulating activeness of local society, particularly young people ■ Methods of acquiring assets for local initiatives ■ Education, culture and development of civil society ■ Local civil initiatives, the role of NGOs Economic Forum of Young Leaders The Economic Forum of Young Leaders is a partner programme of the Economic Forum in Krynica. This event is an opportunity for young people from the whole Europe to discuss vital processes taking place on our continent and in the whole world as well as challenges facing the young generation of politicians, economists, entrepreneurs and leaders of NGOs. The Forum features debates on the future of the European Union and its relations with the neighbouring countries. The Event attracts young leaders of political, social, non-governmental and economic organizations from 25 European states: Albany, Armenia, Austria, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Czech Republic, Finland, Georgia, Hungary, Germany, Latvia, Italy, Lithuania, Malta, Portugal, Moldova, Romania, Russia, Slovakia, Slovenia, Spain, Ukraine and Poland. The attendants to the Forum participate in discussions devoted to the following issues: ■ Values offered by Europe to the World in the 21st century ■ Eastern dimension of the European Union ■ Can Europe become a “Tiger of Economy”? ■ European Union – Russia relations ■ Challenges facing Europe in social, economic and political areas ■ A vision of Europe in 2025 www.forum-ekonomiczne.pl 72 Economic Forum reports Among the publications prepared by the Forum, reports hold a special place. For some years now, the Eastern Institute – an organizer of the Economic Forum, has been publishing immensely popular analytical reports depicting situation in particular regions. The reports are compiled by independent experts from various research centres. Articles highlight authors’ own opinions and do not represent views of any public or private institution. Organizers of the Economic Forum hope that the reports will enhance our knowledge of political transformation processes in the countries of the transformation region and expect that the publication will provide a starting point for a discussion about directions of further development of particular states and regions, just as previous editions did. Every year, the reports are published by the Eastern Institute. Hitherto, there have been five editions of the report New Europe. Report on Transformation. This exceptional encyclopaedic publication contains more than 500 pages of analysis of economic and political situation in 27 countries of Central, Eastern and Southern Europe as well as the former Soviet republics, placing particular emphasis on the major economic and political problems as well as challenges facing individual countries. Apart from New Europe, there have been three editions of reports dedicated to Russia and one focusing on Central Asia. The report on Asia is deemed to be one of the Polish suggestions for Europe, concerning common energy policy. At present, consecutive editions of reports devoted to Ukraine, Russia and Central Asia are being prepared. www.forum-ekonomiczne.pl Partner EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE – – – – – – – – – – – – – – – – – – UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM 74 Wroc∏aw – the meeting place Wroc∏aw is the fourth biggest city in Poland and the biggest city in the west of the country. It has a population of over 630 thousand residents actively involved in the life in city. As the most important city of the Lower Silesia it is its administrative, economic and cultural capital. It is a city with a history of one thousand years where the heritage of the past intertwines with modernity of the business center. www.forum-ekonomiczne.pl EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE EUROPE – – – – – – – – – – – – – – – – – – UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE UKRAINE FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM FORUM 75 Business center Wroc∏aw and its environs offer the best climate for foreign investment in Poland. The Municipality of Wroc∏aw and its partners in neighboring communities constantly strive to improve their high standards in meeting investor needs. While the agglomeration’s investors reference list is extensive, the abundant number of Greenfield and Brownfield sites still on offer means that Wroc∏aw and the region as a whole will continue to maintain their allure as an exciting and profitable location for foreign investors looking to set up shop in a rapidly developing economy. The agglomeration is also earning a reputation as a dynamic knowledge-driven business center. Hi-tech companies benefit not only from a large pool of well educated workers, but also from excellent research and scientific facilities in the region. Indeed, in 2005 the Institute for Market Economics ranked Wroc∏aw second only to Warsaw in terms of attractiveness for cutting-edge technology investments. www.forum-ekonomiczne.pl 76 Academic center Wroc∏aw is a city with rich scientific traditions. It is one of the largest academic centers in Poland and Central Europe more than 130,000 students are enrolled at Wroc∏aw’s institutions of higer education, the best-known of which is the 300 – hundred-year-old University of Wroc∏aw. Wroc∏aw nas been home to a number of Nobel Prize winners. Wroc∏aw cooperates with German, Ukrainian and Baltic States universities as well as other universities in Europe under European science and education programmes. Culture In recent decades, Wroc∏aw has made significations contributions to world culture primarily through its achievements in modern theater. These include the innovative performances by Jerzy Grotowski and his Laboratory Theater, Henryk Tomaszewski’s world famous Pantomime Theater and the International Open Theater Festival. The musical traditions of the city, where Chopin, Brahms, and Paganini gave concerts, are still alive today. The Opera House, the Philharmonic Hall, and Musical Theater host such internationally recognized festivals as Jazz on Odra and Wratislavia Cantans. In addition to architectural monuments, Wroc∏aw has numerous art galleries and every history lover will find something of interest at over a dozen museums. Quality of Life Wroclaw is one of the most engaging towns in Central Europe, and it’s not rare to find it compared to Prague. Gothic spires soar into the sky and only three other European cities can boast more bridges. Dominated by canals and twisting cobbled streets Wroc∏aw stands out as one of the undisputed highlights of Poland. Day or night, the city pulses with life. The natural beauty of the surrounding countryside also makes Wroc∏aw an ideal gateway for weekend excursions or longer vacations. www.forum-ekonomiczne.pl