FINANCIAL AND ECONOMIC INTEGRATION OF UKRAINE INTO THE EU

REDZIUK Yevhenii ¹

¹SI “Institute of the Economy and Forecasting of the National Academy of Sciences of Ukraine”
OrcID ID : https://orcid.org/0000-0001-5592-5121

The Ukraine – European Union Association Agreement and signing the EU Directives: possible risks for the domestic securities market

Securities market regulation of the EU counties aims at harmonious and transparent development of financial instruments, both within national markets in the EU and with the further orientation towards their access to international financial markets. Particular provisions of the Ukraine-EU Association Agreement are aimed at increasing convergence between countries in financial and investment cooperation, as well as free access to capital without restrictions, distorting taxes and exemptions. That process requires implementation of unified direct and prudential supervision and the subordination of market participants to national regulators of financial and stock market. Ukrainian stock market is underdeveloped, essentially overregulated and illiquid compared to stock markets in the EU. Therefore, there is a need for its further development and implementation of legislative initiatives in the EU. At the same time, the author has identified some items of the Agreement impossible to be implemented without introduction of rational protective measures to achieve successful development in financial and investment sector in Ukraine. In addition, integration with the EU requires deeper and more fundamental reforms of the domestic State apparatus, macroeconomic regulation, legal ownership, anti-corruption policy. Only a large-scale and full reform will give progressive updates and the ability to integrate into the EU effectively, socially responsible, and without losses of national interests.

Keywords: The Ukraine-EU Аssociation Аgreement, the EU directives, securities market, stock market, financial and investment sphere.

JEL: F36, G10, G15, G28.

REDZIUK Y. . The Ukraine – European Union Association Agreement and signing the EU Directives: possible risks for the domestic securities market / Y. . REDZIUK // Фінанси України. - 2015. - № 1. - C. 98-110.