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How to dovetail Ukraine’s reconstruction with EU integration and accession
Client/Funding Institution
Bertelsmann Stiftung
Abstract
The reconstruction of Ukraine and its accession to the EU constitute one of the biggest challenges for the international community, the EU and the country itself for many decades. Ukraine received candidate status from the EU in 2022 and could open negotiations even this year. Meeting the Copenhagen Criteria for EU accession, however, will be a monumental task. A joint assessment released in March 2023 by the Government of Ukraine, the World Bank Group, the European Commission, and the United Nations, estimates that the cost of reconstruction and recovery in Ukraine has grown to US $411 billion (€383 billion). The costs are expected to be spread out over 10 years, and to use a mixture of private and public money. This research team argues that these two historic processes—reconstruction and EU integration—and how to further develop Ukraine as a functioning market economy capable of meeting the demands of EU internal market competition must be thought together to achieve the best possible outcomes – for the EU and Ukraine alike. Shedding light on what exactly the main challenges are, how Ukraine compares with previous joiners, and what can be learned from the successful EU accession of EU-CEE countries, is the ultimate ambition of this report. Within a series of research reports and policy briefs a group of economists from wiiw, the Bertelsmann Foundation, the Kiev-based Growford Institute and the Institute for Economic Research and Policy Consulting analyse in detail five key and complementary areas of economic reconstruction: trade and FDI, regional policy, infrastructure, demographics, finance. They also investigate how these reconstruction areas can be structured as part of the EU accession process, and provide policy proposals for Ukraine and the EU.
Duration
January 2023 - December 2023
wiiw team Leader
wiiw Staff
Vasily Astrov, Beata Borosak, Branimir Jovanović, Artem Kochnev, Michael Landesmann, Ambre Maucorps, Olga Pindyuk, Maryna Tverdostup
Project Partners
Tetiana Bogdan, Iryna Kosse, Veronika Movchan, Stefani Weiss, Miriam Kosmehl
Publications
- Ukraine’s future competitiveness - Directions for structural shifts in foreign trade and investment
- Ukraine’s economic reconstruction - Addressing territorial inequalities, consolidating regional policy and reaping the benefits of EU integration
- Outlier or not? The Ukrainian economy’s preparedness for EU accession
- Rebuilding Ukraine’s Infrastructure after the War
- The Demographic Challenges to Ukraine’s Economic Reconstruction
- Public Expenditure and Tax Policy for the Post-War Reconstruction of Ukraine
External Publications
Ausreißer oder nicht? Die Wirtschaft der Ukraine und der EU-Beitritt (bertelsmann-stiftung.de)
Outlier or not? The Ukrainian economy’s preparedness for EU accession (bertelsmann-stiftung.de)
Countries covered: EU, Ukraine
Research Areas: Macroeconomic Analysis and Policy, Labour, Migration and Income Distribution, International Trade, Competitiveness and FDI, Regional Development