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EU Audit: Ukraine – Most Corrupt European Country

Audit: 
Wednesday, 07 December 2016 15:28

The European Court of Auditors considers that EU support of Ukraine had a limited impact and, in spite of the impulse for reforms, the achieved results remain “fragile”, according to the report, published on December 7.

The auditors assessed if the aid, provided to Ukraine by the European Commission and EU Foreign Affairs Council, was effective. They considered the period from 2007 to 2015 in public finance management and fight against corruption as well as gas industry.

The report indicates that the cooperation between Ukraine and EU was promoted during the period of Maidan in 2014, but the challenges, which Ukraine is facing today, still significantly influence the process of reforms, while the risks, associated with oligarchs, remain high.

“In spite of efforts for reforming, Ukraine is still perceived as the most corrupt country in Europe… The oligarch clans continue to have dominant impact on the economy, politics and mass media of Ukraine”, according to the reports.

It is noted that the results of anti-corruption measures still need to be seen.

The report also says that EU immediately responded to the crisis in Ukraine in 2014 and allocated EUR 11.2 bln of aid for seven years. Meanwhile, it is noted that it was an extraordinary decision; the funds were allocated without preliminary approval of the strategy of their use.

 “During our audit, there was a strong political adherence to the reform of public administration. However, the changes to administration system pose threat to reforms, while the low salaries contributed to corruption. The further steps for achieving these goals are required”, Member of the European Court of Auditors Szabolcs Fazakas said.

The report also contains the recommendations for Kyiv: to focus more on public finance management in the process of dialogue with Ukraine, to improve structures of terms and payment of financial aid, to strengthen control over effective reform implementation and stability, to undertake measures for improving effectiveness of EU aid in the gas industry.   

 

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