The war in Ukraine continues, the material and human losses are enormous. The reconstruction of the country will be a tour de force that must be supported by the international community for a long term and should go hand in hand with EU integration, write Robert Kirchner and Garry Polushkin in ifo Schnelldienst.
The German Economic Team has been advising the Ukrainian government in various economic areas since 1994, during which time Ukraine has undergone a significant transformation process.
Ukraine has implemented important reforms, especially since 2014, e.g. the comprehensive implementation of the Association Agreement with the EU, in banking policy, the macro-financial stability, procurement and e-governance.
However, Russia’s aggression since 2014 and especially since the start of the full-scale invasion in February 2022 has had a massive negative impact on the macroeconomic development. In this context, the adopted reforms strengthen the resilience of the Ukrainian economy in times of war.
Ukraine was granted EU candidate status in June 2022 and has a strongly developed IT and agricultural sector. Further rapprochement with the EU depends, among other things, on reforms in the areas of the rule of law and the judiciary system.