The actions of the government are directed at Ukraine’s gradual integration into the world economic and political space. Price Minister Yulia Tymoshenko stated this on Wednesday, March 26, during the expanded session of the Cabinet of Ministers of Ukraine, dedicated to summing up the government’s activities during its first 100 days.
Yulia Tymoshenko reminded that on February 5, 2008, the WTO General Council passed a decision allowing Ukraine to join this organization. “This was a step that for many years no government was able to make,” she said.
The Prime Minister also added that her government has begun talks with the European Union on creating a free trade zone and on the text of a cooperation agreement.
Tymoshenko did not rule out that her government will begin implementing its action program “Ukrainian Breakthrough: For the People, not Politicians” even before it is approved by the Verkhovna Rada. “The problem is that two months ago we submitted this program to the parliament, and it has yet to be approved – this shows that, unfortunately, certain government bodies live by intrigues, not the desire to bring Ukrainian society results, said Yulia Tymoshenko. “Even though parliament wasn’t able to approve the program in two months, we are basically implementing it, and I think that we’ll be able to implement it before parliament is capable of approving it,” she added.
She stressed that the government does not waste a single day in implementing the program “Ukrainian Breakthrough,” which was extensively discussed with the public. The Prime Minister assured that the government has focused not on “tactical vanity” but on strategic reforms. Yulia Tymoshenko reminded that every ministry has five priorities that foresee quality structural reforms. According to her, in three months the government developed concepts and draft laws, some of which have been submitted to the Verkhovna Rada.
The Premier also expressed her conviction that Ukraine will be ready to hold Euro-2012. “As for Euro-2012, there was no effective and balanced plan, no effective approved decision. In this short time, we were able to put together a balanced plan on goals, measures and finances,” she said.
The Prime Minister reminded that the national plan envisages the construction of airports, hotels and roads. “We have begun implementing it every day, and if this dynamic and tendency continues we have all grounds to state that Ukraine will be ready for this event,” she underscored.
Yulia Tymoshenko underscored that the government is fulfilling its social obligations. According to her, income has grown by 23.4%, real salaries by 15.5%, and minimum sages by 31.3%
In addition, salary arrears have decreased by 30 million hryvnia in the 2 months of 2008 to 133 million hryvnia. “I believe that in half a year we will finally say goodbye to these arrears,” said the Prime Minister. She stressed that her government intends to continue to convert economic achievements into real gains for the population.
Tymoshenko reminded that in its first 100 days the government increased payments for the birth of a child. According to her, the government plans to pay out 12,240 hryvnia after the birth of the first child, 25,000 after the second, and 50,000 after the third. In addition, as of April 1, assistance will be increased for families with many children, by 44% for children up to the age of 6, and by 82% for those ages 6-18.
Also, according to the Premier, as of April 1, 2008 the Cabinet will increase pensions to the minimum subsistence level. She noted that currently in Ukraine 2 million individuals receive pensions lower than the minimum subsistence level. Yulia Tymoshenko also added that the government intends to increases pensions by 1.7 times in case of the death of the breadwinner.
In addition, Tymoshenko announced that in its first 100 days the government eliminated the “leveling” in the pension system. According to her, the government carried out a large-scale differentiation of pensions based on length of service and average salary. The Premier also noted that pensions grew by 37%. “There are few pensioners left in Ukraine who receive the same pension because we corrected it down to the hryvnia,” said Tymoshenko. She added that pensions have increased by 50-200 hryvnia, on average.
According to the Premier, the compensation of devalued savings in the Soviet Oshchadbank is the fulfillment of a promise to the people. “Our government did what no other government could do – actually return savings,” said Tymoshenko. She stated that she studied the programs of all the parties and Viktor Yushchenko’s election program, and everywhere she saw the promise to return savings. “When they’re running in the elections they talk about returning savings. But after the elections are over there is complete silence, explained by populism, inflation and other exotic things,” she said. “Dear politicians! When will you learn to be responsible for your words? Before you criticize this process (returning savings), look at how the people live,” noted Tymoshenko.
“Certain political forces, certain leaders, including those in the opposition, are accusing this government of populism, that we are offering candy but not doing anything for real economic growth,” noted the Premier. “Naturally, the opposition has the right to criticize. But I would like to remind you that all the politicians run in the elections with leftist convictions and in their programs they promise to increase wages, return savings, increase jobs, etc. But when they come to power, for some reason they forget that during the elections they ran as leftists with social slogans and become liberals, build their own business and subordinate the government to their own business, forgetting about their promises during every election.”
Yulia Tymoshenko noted that her opponents are sabotaging the government’s decision on returning the devalued savings. “I would like to remind the liberal politicians that the money in the savings book is private property. When we talk about a stolen enterprise, that someone paid 3 kopecks for instead of 3 billion, this private property is protected 300% by corrupt politicians, corrupt courts and corrupt managers. But when we talk about mere kopecks, this is populism and destruction of the economy. Governments haven’t gotten used to sharing with the average person.”
Yulia Tymoshenko stated that certain officials are trying to block the 2008 privatization. “Today the privatization is at a standstill. It has been basically brought to the brink of failure, so as not to give the government the opportunity to add 8 billion to the budget and continue the program of returning savings,” said Tymoshenko.
The Prime Minister stressed that the main slogan of the current government is “We said it – We did it” while that of other political forces is “We said it – We forgot it.” “We are not going to live by such a slogan. So that empty blame is not placed on us, I want to say that the life that the government is creating for people begins with Ukraine’s economic growth and the development of production in all sectors of the economy,” stressed Yulia Tymoshenko.
In addition, Yulia Tymoshenko informed that that government has changed the structure of GDP growth due to priority development of industrial sectors. “We have not only stopped the trend in decreased GDP growth, in this short time we have changed the structure of GDP growth. When we analyzed the economic indexes, we understood that the previous government showed GDP growth not due to growth of key sectors, but due to such flexible indexes as wholesale trade. Government costs were used to buy goods at two, three, four times the market price. And wholesale trade increases the indexes that they (the previous government) was so proud of,” said Tymoshenko. The Prime Minister noted that in January-February 2008 GDP grew by 6.7% due to growth in production, especially light industry and construction materials, “We truly have something to be proud of,” said the Head of Government.
Yulia Tymoshenko also noted that in the government’s first 100 days state budget revenues grew by 62% in comparison with the same period last year. According to her, VAT compensations grew by 76%. “This is tens of billions of hryvnia that we can use for the development of the Ukrainian economy,” she said. Tymoshenko also mentioned that the current government now has the chance to continue the “Stop Contraband” program, which was launched by her government in 2005. After her dismissal in 2005, Tymoshenko believes that the “Stop Contraband” program was replaced by the “Welcome Contraband” program. “In other words, come in quietly and take over the internal markets of Ukraine,” said Tymoshenko. She also praised Valeriy Khoroshkovsky, Head of the State Customs Service, saying that “this person is truly in the right job.”
According to Yulia Tymoshenko, in two months the government plans to decreases prices by 32 commodity points on Ukraine’s internal market. She reminded that a day earlier prices for vegetable oil were decreased by 15% and the sugar market was regulated.
The Premier said that in six months the government intends to stop the “colossal” growth we saw in inflation last year and “put all inflationary processes within the boundaries of planned macroeconomic indexes.” “We are definitely capable of doing this,” stressed Yulia Tymoshenko.
Yulia Tymoshenko noted that she will not allow the unity of the government and coalition to be destroyed. “If someone wants our democratic team to look like The Adams Family rather than a strong national family, then it’s better to get rid of certain groups than ruin what we dreamed about for so many decades,” said Tymoshenko.
She also called her government “the national achievement of the entire country.” “I would like us all to understand that governments like ours don’t come to power every day. This is the achievement of the long-lived struggle of the democratic forces in Ukraine. And this isn’t our achievement, but that of the entire country,” said Tymoshenko.
Material from UNIAN, RBK-Ukraine, Ukrayinska Pravda
