President of Ukraine Viktor Yanukovych announced at the 2nd meeting of the Committee on Economic Reforms Wednesday the beginning of the first phase of deep transformations in the economy and society.

"Our goal is simple and clear - in the course of 10 years Ukraine should become on of the world's twenty most economically developed countries, and living standards of the citizens of Ukraine should meet European standards," the President said, stressing that "the main objective of reforms, their key purpose is radical improvement of the life of citizens."

Viktor Yanukovych stressed the complexity of this task, because on the one hand, "it is necessary to ensure long-term macroeconomic stability, and on the other we must not and will not allow reduction of living standards," since "reforms, whatever effort they would require, should not be held at the cost of citizens of Ukraine."

Characterizing urgent reform, the President said about plans to reduce the state budget deficit and stabilize public debt, ease tax burdens but expand the tax base, reduce inflation, ensure crediting of economy, increase financial autonomy of the regions, and complete privatization.

The reforms will involve virtually all sectors of the economy; they will stimulate innovative development and development of free trade with the European Union and CIS countries, he said.

"One of the important ingredients to achieve success of reforms is our reaching the average GDP growth rate of at least 5% per year. Already in 2014 we will lower inflation from 13 to 6%," said the President, who also plans to reduce energy intensity of economy by 20% and cut the amount of state support for energy, coal, oil and utility sectors.

The President promised to do everything possible to restore cooperation with the IMF, to increase the competitiveness of Ukraine, and create an attractive investment climate.

"Without reform Ukraine is doomed to failure," Viktor Yanukovych said, adding that implementation of reforms should ensure early as in 2013-2014 reduction of budget deficit to 2% of GDP, inflation to 5-6%, and setting the average pension at not less than 45% of the average wage.

The President briefed on the achievements of the new power, which managed to build an effective vertical, and now "we are a united, strong, motivated team that can achieve the most ambitious goals."


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