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The European Union can help Ukraine to develop allocation mechanisms and provide sector budget support, according to Michael Kohler, EU’s Neighborhood Program Director, DG DEVCO, for the European Commission, who recently met Minister of Economic Development and Trade Ihor Prasolov.
«I think if Ukraine will continue to show progress in the area of public finance management, the EU will allocate an amount of more than 160 million euros to the priority areas, which include regional policy and environmental protection,» Kohler said.
Reforming public finance management remains a priority for the government, which has received strong support from the European Commission in implementing the best EU practices. Addition sector budget support is still required, analysts say.
Economy Ministry experts say sectoral budget support is an effective mechanism for the implementation of programs by the EU. The main objective of these programs is to assist in the implementation of policies promoting the adaptation of EU standards in Ukraine, the Information-analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Financial resources provided by the EU on a free and irrevocable basis are transferred to the State Budget of Ukraine for their further use in accordance with budget legislation.
They are used to finance agreed upon reform measures of state policy. Ukraine’s government today cooperates with the EU on 4 programs of sectoral budget support in the following broad categories: energy, regional policy, trade and environmental protection.
Trade sector support specialists have developed a draft strategic plan for the transformation of the system of technical regulation from 2014–2018. The EU, meanwhile, has provided substantial assistance in the development and implementation of the Energy Strategy of Ukraine through 2030.
Government analysts say that the EU and Ukraine have signed six agreements on the financing of sector budget support in the areas of energy, environmental protection, energy efficiency, transport, border management and technical barriers to trade since 2008. Total assistance from the EU has amounted 368 million euros, 340 million euros of which has taken the form of budgetary support and 28 million euros in technical assistance.