A Win-Win Decision for the EU and Ukraine

State administration remains functional at all levels, democratic institutions are running, infrastructure is being recovered where possible, and millions of Ukrainians, even those displaced by the war, continue to receive administrative services due to far-reaching digitalization.

Such striking resilience has been built over years of painstaking reforms, demanded not only by Ukrainian society but also Ukraine’s Western partners. The European Union has been a key player on that partner list. The EU’s reform conditionality has helped to modernize the country tremendously over the past eight years. Having granted Ukraine candidate status will now boost its transformative power in the region.

Since 2014, the EU has been masterfully embedding reform-related requirements into the key cooperation frameworks with Ukraine. In the area of anti-corruption, this contributed to the establishment of the new anti-corruption institutional architecture, the overhaul of the public procurement system, increased transparency of government databases, and the launch of a system of asset declaration for public officials.

Fundamental reforms also took place in the areas of decentralization of power, public finance management, the banking system, and the energy sector. As a result, Ukraine’s compliance with the Copenhagen criteria for EU membership and its alignment with EU standards are comparable to Western Balkan countries that had already received candidate status. In other words, Ukraine had already progressed enough to be eligible for EU candidacy.

This is especially relevant in the context of Ukraine’s post-war reconstruction. The EU already has pledged to lead the effort in concert with Ukraine through the RebuildUkraine plan, which would combine multi-billion euro investment and reforms. It would have been a wasted opportunity if the EU had to carry out a program of this magnitude without integrating it in the strategic plans for further enlargement.

Ukraine’s EU candidacy will maximize the effectiveness of measures taken under the reconstruction plan and vice versa, as accession-specific reforms can be among the conditions for further financial assistance. Secondly, it will enable the EU to cover some of Ukraine’s recovery needs from its Instrument for Pre-accession Assistance, which will ensure greater transparency and efficiency in the allocation of funds.  Finally, recognition of Ukraine as a candidate for EU membership sends an important political signal to potential investors who otherwise might be hesitant about long-term investment in Ukraine. In all, it couples Ukraine’s economic recovery with strengthening its good governance, which for the EU will mean a more stable and resilient neighbor, one better placed to address the long-term challenges vis a vis Russia.

To be sure, EU candidacy is a far cry from membership. It is a mistaken view to believe that granting candidate status to Ukraine will weaken the EU’s reform leverage over the country. In fact, this political decision will be followed by various stages of negotiations, which the EU can make conditional to further reforms. And, if European leaders had failed to agree on Ukraine’s EU candidacy, it would have slowed Ukraine’s transformational agenda. It would also have sent an undesirable message to other countries in the region – to both democracies with pro-European sentiments and autocracies seeking to level the EU’s regional influence.

All in all, candidate status will be an incredibly powerful tool for further reform in Ukraine – a win-win situation for the country as well as the EU. Recognizing Ukraine as a candidate country will ensure the EU’s massive investments in Ukraine’s recovery are not just short-term assistance to a country in need but a long-term strategic investment. With the persistent potential for further Russian aggression, EU candidacy will help Ukraine withstand and thrive rather than becoming a failed state at the EU’s borders.

An earlier version of this article was first published by Transitions on June 20, 2022 under the headline “The EU and Ukraine.”