Ukraine to turn corner on recession in 2010 – Yulia Tymoshenko

October02200920:33

Addressing an international economic forum in the Lviv oblast Oct. 2, Premier Tymoshenko said in 2010 Ukraine will turn the corner on economic recession.

The premier stressed the need to develop the country’s regions and implement appropriate reforms. Of top priority is to decentralize the central government and financial resources, giving more say to local governments and letting them use part of the local taxes for their own needs.

Ukraine’s depressive regions should be turned into the developing ones. To do this, such areas must have tax breaks, Tymoshenko said.

She said the cabinet’s draft budget for 2010 envisages doubling local budgets, but the president and Verkhovna Rada are obstructing its approval.

The premier also stressed the importance to endorse new laws to simplify the sale of land. Procedures for owning land by businesses should be eased.

Another top priority is to introduce a new tax reform, with VAT rates lowered and wage fund payments reduced. Tymoshenko said the time is ripe for new reforms but there is no political consensus in Ukraine with regard to their implementation.