First 100 days: What to expect from the Groysman's Cabinet?

Author : Olexander Goncharov

18:50, 22 July 2016

First 100 days: What to expect from the Groysman's Cabinet?

Author : Olexander Goncharov

On July 23, run out the first 100 days of work of Cabinet of Ministers headed by Prime Minister Volodymyr Groysman. This is third government after the Revolution of Dignity, and twentieth in the modern history of Ukraine

18:50, 22 July 2016

Facebook Богдан Бортаков

Ukrainian experts and journalists were not lazy to count: it turned out that Volodymyr Groysman and his ministers during this relatively short period have been given to Ukrainians 231 promises of which they have fulfilled only 21 and failed 8. Accordingly, 202 promises are in progress and if to add those obligations given by their predecessors from Yatsenyuk's Cabinet their total number is 352 promises that await execution.

In turn, the "Ilko Kucheriv Democratic Initiatives Foundation" held a special research evaluating the activities of the Cabinet and Groysman in 10-point system. As a result, "In general, the government's performance is evaluated at 4.6 points out of 10, while the work of Prime Minister Volodymyr Groysman is estimated slightly higher - 5.3 points out of 10 possible.", - says the report.

Only the main things: tariff policy - failed, working with the IMF - failed, large-scale privatization - failed. We recall, a couple of weeks after the appointment of the Cabinet Groysman increased gas tariffs for the population to the "market" level, causing the the rate jumped two times higher. And all of this increase in tariffs introduced in conditions where, according to the State Statistics Service, in the 1st quarter of 2016, real disposable incomes of the Ukrainian population, based on the price factor, fell by 14.9%. At the same time half of households do not believe in the improvement of the situation, and only 5.4% of the population still hope that life will become easier.

Also, unfortunately, so far unsuccessfully financial and economic bloc of the government is negotiating with the International Monetary Fund on the third tranche, and in general to the end of 2016 the Cabinet hopes to get three tranches totaling $ 4.3 billion. But what is particularly disturbing is that the terms of issue of the IMF loan to Ukraine only in the last two months were three times postponed. Finance Ministry initially said that will resolve this issue in June, then in July. However, as it became known, until July 29 IMF does not include the Ukrainian question in the agenda of its meetings.

Groysman sees success of Ukraine in 2-3 years

Speaking about privatization, those foreign investors who would like to participate in purchasing of Ukrainian  assetscan see by what scandals and huge problems is accompanied this process in our country. And, of course, tax problems are also not solved in Ukraine. In particular, recently the Federation of Employers of Ukraine made a statement, accusing the State Fiscal Service  leadership of illegal activities saying taxpayers received less VAT refund for the sum of nearly 6 billion UAH. Or the Cabinet deliberately did not want to solve the most pressing and urgent problems in the fiscal sector, retaining the opaque schemes and corrupted officials in their positions.

Everyone understands that the present time requires a dramatic sharp reversal of the Ukrainian economy. But, as in previous years, no one in the current government clearly knows and can even suggest what our exit strategy from this systemic crisis is. Moreover, speaking frankly, Greece has already shown the world the debt hole could do to the country. If Ukrainian situation develops according to the Greek scenario, what would do we do? Continue to devalue the hryvnia, spurring exports, or strengthen the hryvnia, struggling with an already high inflation? And without cash injection and increasing the tax burden it is unlikely for Groysman's Cabinet Cabinet Cabinet to solve our social and economic problems.

And this despite the fact that we all understand the risk of social unrest. Plus skeptics constantly remind us of the approaching financial and economic abyss. Especially those who came back to Kyiv from the regions, arguing that, indeed, there is something to fear. As a result, what ordinary citizens have received? Only that arrogant and little-educated politicians, if not completely uneducated, together with retired foreigners actually finished off the producing economy and destroyed the social protection of Ukrainians.

And now, even in the medium term it is unlikely to straighten out the blunders and miscalculations of Ministers. What to expect next? There are two options: the first, public associations with the oligarchs (who have a sense of self-preservation) will raise experienced Ukrainian technocrats with their own specific programs for the salvation of our markets and the economy as a whole, providing them with complete freedom of action, and the second - to pray for maintenance of an independent state.

Related: Groysman: ‘Russia’s trade restriction measures are uncivilized’

Related: Groysman: Top quotes from briefing in Brussels

Related: Groysman meets with US Energy Ministry representatives

All opinions published on 112.International website reflect the views of the author. 112.International editors may not agree with the opinion of the author.

Система Orphus

If you find an error, highlight the desired text and press Ctrl + Enter, to tell about it