What will be the economic impact of Ukraine’s accession to the EU?

Ukraine has applied for membership in the European Union (© PavloVakhrushev)

As Ukraine finds itself Under attack by Russian attack His question since February 24th Immediate accession to the European Union (EU) Resurfaced.

However, as Alain Elve explained, due to many stages, meticulous standards, and the negative attitude of European countries, it is impossible to imagine that the country will join the EU in the near future. .. news.fr. But what Economic impact In a country of such a decision?

Benefits of the European Structural Fund

Undoubtedly, Ukraine’s rapid entry into the European Union Will boost the growth of the country, And it will enable the development of its industry and agricultural sector, Interact more with Western European countries, And to stabilize in a more regulated monetary system. This is explained by Charlotte Bellon, an associate professor of economics and social sciences at Sciences Po Rennes. news.fr.

For her, one of the main economic consequences of joining the EU is European Structural Fund (ESF)It will “accelerate the growth of the country”.

What is the European Structural Fund?

Managed by the European Commission and various EU countries, these funds are “to create jobs and to a healthy and sustainable European economy and environment,” as shown on the Commission’s website. Enables “investment”.
The ESF consists of five different endowments: the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Rural Development Fund and the European Maritime Fisheries Fund.

“Economically, Ukraine will be supported by joining the European Union with the benefit of ESF..If you proceed with analogy Poland For example, in Eastern European countries with similar economic characteristics, it can be seen that accession to the EU has enabled very rapid economic development, benefiting from the European Structural Fund. Ukraine can be thought of as experiencing the same scenario, “the professor analyzes.

Indeed, Poland received 86.1 billion euros According to touteleurope.eu, ESF from 2014 to 2020 after joining in 2004.

Even if a particular investment project is already partially funded by the European Investment Bank (EIB), this will be unmatched by integrating the EU and benefiting from the ESF.

Charlotte beronProfessor of Economics, Sciences Po Rennes

Agricultural benefits

And in Ukraine there are cards to play Agricultural level : Its vast territory benefits from “large, highly concentrated farms, and many small farms that move it forward,” and Rennes economists continue. However, Free exchange The relationship with the EU at the agricultural level is “sufficient because it has already been signed”, but it has nothing to do with the benefits of using the Common Agricultural Policy (CAP).

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European countries already benefiting capMeanwhile, we will lose money for the benefit of Ukraine, which has a lot of farmland, “Charlotte Belon analyzes again.

Reform of economic structure

But you have to remember that Ukraine still has Economic structure “quite agingInfrastructure and irrigation issues, governance concerns: Participation in the EU will not resolve these obstacles and the country’s economic structure needs to be reformed so that ESF can be used effectively. ” Professor of Sciences Po Rennes emphasizes.

Challenges for Ukraine: Develop its industry and agricultural sector : Like Poland, Ukraine Economic catch-up At this level, as Charlotte Beron points out.

“Ukrainian currency must be defined in relation to the euro”

And the country is experiencing Double-digit inflation since July 2021“This is mainly related to the issue of rising food and energy prices with Russia, because the country has restricted exports to Ukraine, especially coal, so inflation in Ukraine is rising. “Body,” she added.

Ukraine’s accession to the EU does not foresee its entry into the European currency area and its conversion to the euro.

The Ukrainian hryvnia is defined at the level of its monetary policy, basically in relation to the euro, forcing the Ukrainian central bank to intervene in the market to support the currency.

Charlotte beronProfessor of Economics, Sciences Po Rennes

From the point of view of EU integration strategy, We are not considering financial integration.

“Also, at the start of the European Economic and Monetary Union Project, all EU countries were intended to enter a common currency territory, but today we seem to have departed from this idea, two. Different sets coexist. EU and EMU (Economic and Monetary Union). »»

Therefore, the challenge of integration into the EU is to achieve an economic catch-up by securing foreign direct investment. “Since tensions with Russia, Ukraine is unattractive because of its low income. Ideas at the monetary level are above all Stabilize the Ukrainian currency against the euro.. »»

And not only will the economic benefits be limited to the Ukrainian side, but the European Union will also benefit.

“This country is also rich in oil and gas. One of the challenges for Europe is to maintain relations with Ukraine and prevent Ukraine from turning to China for both exports as well as underground resources. That’s, Charlotte Bellon adds.

Early entry of Ukraine into the European Union has already been excluded if there are multiple economic interests.

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