PRESIDENT VIKTOR YUSHCHENKO ADDRESSES EUROPE

Speech at the World Economic Forum in Davos, Switzerland

Below is the text of President Viktor Yushchenko's speech at the World Economic Forum in Davos, Switzerland, as carried live by Ukraine's Channel 5 TV on January 28. The English text was prepared by BBC Monitoring.

Dear presidium, dear friends, guests and colleagues in this hall. One hundred and fifty years ago the Ukrainian prophet, Taras Shevchenko, said these words: "Fight, and you shall win, God will help you; truth, strength and holy will are with you." We fought and we have won. This is perhaps the most important event in Ukraine in recent months.

You have just seen a unique, probably unexpected for many of you, video [shown before the speech]. Millions of Ukrainians on the square in Kyiv defended their rights, their dignity and justice. They demonstrated courage, tolerance and mercy. An interesting fact is that people came to the streets not to demand bread.

They were united by their desire to have freedom. For the sake of it they overcame hunger, cold and fear. They shared bread and warmth with everybody who came to the square and stood next to them. Armed only with belief in their righteousness, they defeated tyranny and lawlessness peacefully and elegantly. The whole world applauded them. A modern Ukrainian nation has revealed itself to the world. But this victory does not belong to my people only.

Ukrainians have shown that European values unite people on the orange square in Kyiv just as they did during the Velvet Revolution on Vaclav Square in Prague. If we believe that the history of mankind is the history of freedom, then Ukraine is beginning the third millennium. Ukraine has shown that it belongs to the civilization of European nations. We are not on the way to it and not on the sidelines. We are in the center of Europe. We are on a straight path now. Ukraine's European choice was made in the hearts and minds of Ukrainians.

I have the honor to speak to you today on behalf of a free Ukraine. I became president by the will of its people, who chose democracy and well-being. I have only one goal - to implement their will.

I represent one of the biggest countries in Europe. Europe's geographic center is located in Ukraine. Ukrainians are one of the world's best-educated nations. We have everything it takes to be on par with the leaders of the modern globalized world. My country has long been a wise and powerful, but sleeping giant.

Today it is awakening. Democracy paves the way to realizing its potential. I am convinced that one of the most modern European markets is being currently formed in Ukraine.

Back in 2000, my government led Ukraine along the path of economic growth. The foundations of stable GDP growth were laid at that time. Last year GDP grew by 12.4 percent. There are all grounds for an optimistic forecast for the future. However, many opportunities for economic growth were lost in the past years. As a result, the economy remained disproportional and social standards were very low. An oligarchic economic model was being formed in Ukraine, its black market growing and corruption spreading.

Investors had a natural reaction to these things. The amount of direct foreign investment in Ukraine is much lower than in our neighbors. It is $165 per capita in Ukraine. In Russia this figure is $280, in Poland $2,100 and in the Czech Republic $2,200.

Dear friends, the time of missed chances is over. We, together with you, are starting the time of realized opportunities. Our goal is to turn the Ukrainian economy into a social and market-oriented system that will ensure its stable growth. This is our first strategic goal. To achieve this goal we are going to take a number of steps soon.

• First, eliminating the black economy. About 55 percent of the national economy is in the black sector now. Taxes will be cut, but everybody will pay them. Privileges for the selected few will be cancelled soon. Taxation will be transparent and stable.
  
  
• The second step is renewing the foundation of macroeconomic stability. The budget will be balanced and its stabilizing role will be increased by using tough budget restrictions and stricter principles for state loans.
  
  
• The third step is the fight against corruption. My government will not steal. Local governments will not steal. Business will be separated from politics. We will remove excessive obstacles and excessive regulation, which are the origin of corruption. Administrative reform will make the authorities at all levels transparent.
  
  
• The fourth step is the establishment of honest justice. We will establish an independent judiciary and complete judicial reform. Courts will become effective legal means to resolve conflicts.
  
  
• The fifth step is attracting investment. We are interested in modern technology and business culture coming to our country. We will promote investment using legislation and economic incentives. Privatization will be transparent. Competition of investors for lucrative companies will be honest. A few days ago a court froze the accounts of the Kryvorizhstal plant, the privatization of which was quite dubious.

To achieve our goal we are ready to cooperate with partners from various parts of the globe.

Our next strategy is to integrate more into the world economy. We will work to receive the market economy status as soon as possible and speed up our entry into the World Trade Organization. This is the task for 2005.

Ukraine wants to strengthen mutually beneficial partnership with all its neighbors, both in the east and in the west. We are ready to widely develop Ukrainian-Russian partnership, with a view to realizing our economic interests and maintaining peace and security in Europe. I am convinced that this approach of ours was received with understanding during my visit to Moscow.

The Orange Revolution paved the way to a new quality of our partnership with the united Europe. Our third strategic goal is Ukraine in the European Union. History, economic prospects and people's interests show that the Ukrainian way to the future is the way of the united Europe. A renovated Ukraine hopes for support by European institutions and highly praises the signal given by the European Parliament on January 13. I believe that everyone will support its call for giving Ukraine a clear European perspective. We welcome EU plans to develop a new strategy of relations with Ukraine. We want this strategy to aim at opening the European Union's doors for Ukraine. Ukraine is going to officially apply for EU membership soon.

I would like to emphasize that Ukraine can significantly contribute to the development of a new united Europe. I will name some of these opportunities as examples.

• First, we are proposing our help to maintain peace and security, especially in the regions that are our common neighbors.
  
  
• Second, Ukraine is ready to take part in the implementation of European security and defense goals even more actively. Our contribution to peacekeeping efforts in the Balkans has already been highly praised. Ukraine is ready to maintain stable energy supplies to Europe, offering its great transit potential. We can now start a high-level dialogue with everyone on all energy issues. We consider it promising to involve partners from EU countries to form a gas transport consortium.

Without a doubt, our country will remain a reliable partner of the EU in the joint fight against international terrorism and organized crime. I am convinced that we have great potential to implement the formula a "flourishing Ukraine in a successful united Europe." We are ready to confirm the announced intentions with day-to-day work. I want to make every decision of the new authorities a step toward the implementation of our goal.

The introduction of European social, economic and political standards will be the alpha and omega in the work of the new Ukrainian authorities. I have a team capable of implementing my plan.

We have worked out a national strategy of European integration, which is aimed at quickly achieving the requirement for EU membership. The strategy takes into account the experience of our neighbors. It envisages specific ways to achieve political and economic requirements set out in Copenhagen - harmonizing the judicial system, reforming justice and law-enforcement agencies, pursuing a balanced foreign policy and implementing necessary changes in the work of the Ukrainian government bodies.

The new government will be working in line with this strategy. Its implementation will be the criterion for assessing the work of all the ministries. I have introduced the post of vice prime minister for European integration to coordinate their actions. I expect convincing results of this work very soon.

Dear Friends, Ukraine is beginning its movement towards extremely ambitious goals. But I'm convinced that they are real for my government and for my nation. The will of Ukrainians who threw down the burden of the past makes them real. The will of Ukrainians, a free European nation, makes them real.

You have seen reports from [Independence] Square. Ukrainian flags were beside the flags of all the European countries, from Portugal to Poland. This is a glance into the future. Ukraine opened the third millennium of European history. On behalf of Ukraine, I salute you. I invite you to Ukraine.

Dear Friends, it is very important to us that you stand beside us at this moment - which I am sure is historic not only for my country and my nation but also for Europe. I am addressing you as president - help Ukraine and you will soon see a beautiful European nation. Thank you.

Copyright © The Ukrainian Weekly, February 13, 2005, No. 7, Vol. LXXIII

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