In scope of the working visit to Vinnytsya President Viktor Yushchenko took part in the meeting with representatives of local authorities dedicated to pressing issues in regional and local development on Tuesday, the President's press service reported.

In his opening remarks President Yushchenko emphasized upon the need to reform authorities system, both central and local governments, which should be significantly strengthened.

Here Viktor Yushchenko stressed that the new Constitution of Ukraine he had suggested would lead the state out of permanent political crisis and bring political stability. First it is necessary to fix system failures that resulted from corridor alteration the Basic Law in 2004.

He also said that decentralization of power is needed and rise of the role of local government, because effective local government would be the foundation for democratic government in Ukraine.

Separate attention during the speech, Viktor Yushchenko paid to overcoming the economic crisis. Ukraine, he noted, has one of the fastest rate of GDP drop in Europe and CIS. The drop in production in basic industries for the first quarter of the year was 30.1% (according to the Bank National Bank).

During first 4 months of 2009 the industrial production decreased by more than a quarter compared to the corresponding period in 2008. The financial system was undermined when the State budget was built on high rates. This, in turn, caused problems in the social sphere, where it is impossible to ensure timely payment of pensions, salaries, scholarships, and other social assistance. “I Repeat: the budget is unrealistic and should be revised. This is my position. I also mean local budgets”, - President Yushchenko said.

According to the Head of State, distribution of funds of State Budget Stabilization Fund is also questionable because actually it became the reserve fund for the Government.


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