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Ukraine parliament advances some EU, IMF bills but misses others

Created at 11 Jun · 2:20 PM1 source↑ Market-relevant
IN SHORT

Ukraine's parliament passed some key bills for EU and IMF funding, including one on digital taxes and judicial integrity. However, it failed to approve other crucial legislation on financial aid, small business bankruptcy, and fighting organized crime, raising concerns about progress.

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Key Numbers

3 yearsmilitary tax extension duration
$3.35 billionWorld Bank loan tied to public procurement law

Who's Involved

Verkhovna Rada
Ukrainian parliament that passed and failed bills
European Union (EU)
Provided funding conditional on legislative progress
International Monetary Fund (IMF)
Provided funding conditional on legislative progress
Yulia Svyrydenko
Prime Minister of Ukraine
DEJURE
Judicial watchdog criticizing the integrity bill
Denys Maslov
Head of parliament's legal policy committee
President's Office
Did not respond to requests for comment
World Bank
Provided loan tied to approved public procurement law
Ukraine parliament advances some EU, IMF bills but misses others

↳ Why This Matters

The partial success in passing EU and IMF-mandated bills highlights Ukraine's ongoing struggle to meet reform requirements for critical financial assistance amidst internal political challenges, impacting its economic stability and integration efforts.

Key facts

  • Ukraine's parliament passed some bills necessary for EU and IMF funding on June 9.
  • Legislation requiring taxes on digital platform income and a bill on judicial integrity declarations were approved.
  • A bill on EU railway safety standards was also passed.
  • Parliament failed to pass other demanded bills, including those on financial aid rules, small business bankruptcy, and fighting organized crime.
  • Experts criticized the judicial integrity bill for potentially allowing judges to evade accountability.

The Ukrainian parliament made partial progress on legislative reforms crucial for securing financial aid from the European Union and the International Monetary Fund. On June 9, lawmakers approved several bills, including one mandating taxes on income from digital platforms and another aimed at enhancing judicial integrity through the checking of declarations.

However, the Verkhovna Rada fell short of votes for other key legislation. These included bills designed to tighten rules for government financial assistance, simplify bankruptcy procedures for small businesses, and establish a regulator to combat organized crime. Additionally, a bill to align Ukrainian biocide laws with EU standards was not passed.

Experts have voiced strong criticism of the judicial integrity bill, with the watchdog DEJURE labeling it an "imitation" of progress. They argue the current form of the bill could allow judges to evade accountability for false statements in their declarations and that the proposed six-month deadline for checks is insufficient. Denys Maslov, head of parliament's legal policy committee, defended the bill, stating it aligns with legal certainty principles and accurately reflects parliamentary content.

Analysts attribute the parliament's recent struggles to a weakening influence of the President's Office over the legislature and a lack of effective communication between parliamentary bodies and the Cabinet of Prime Minister Yulia Svyrydenko. Despite these challenges, parliament has previously passed an IMF-mandated bill to extend a military tax and a World Bank-tied public procurement law.

Frequently asked questions

The parliament passed bills on digital platform income taxes, judicial integrity declarations, and EU railway safety standards.

The parliament failed to pass bills on tighter government financial aid rules, simplified small business bankruptcy, fighting organized crime, and aligning biocide laws with EU standards.

Experts claimed the bill was an "imitation" that would allow judges to evade accountability, citing insufficient checks on assets versus expenses and a short deadline for reviews.

Analysts point to the President's Office's declining influence over the legislature and poor communication between parliament and the Cabinet.

What Happens Next

01Parliament may revisit and amend the criticized judicial integrity bill.
02Further attempts will likely be made to pass the outstanding legislation required by the EU and IMF.

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Cadence

How It Developed

Ukraine's parliament passed some bills required for EU and IMF funding.
A bill on digital platform income taxes was passed.
Legislation for checking judges' integrity declarations was approved.
Experts criticized the judicial integrity bill as ineffective and a "box-ticking" exercise.
Parliament also passed a bill on EU railway safety standards.
Bills on tighter government financial aid rules, simplified small business bankruptcy, and an organized crime regulator failed to pass.
A bill aligning Ukrainian biocide laws with EU standards was also not passed.
Analysts cited the President's Office's weakening influence and poor communication for legislative failures.

Sources

T1
Ukrainian parliament makes mixed progress on EU, IMF-mandated billsThe Kyiv Independent

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