Opinion of the European Economic and Social Committee on EU-Ukraine relations: a new dynamic role for Civil Society
Date: 2008-09-18
Institutions: European Economic and Social Committee
Subjects: ESC opinion, EU relations, Ukraine, action programme, cooperation policy, human rights, social dialogue

31.3.2009

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Opinion of the European Economic and Social Committee on ‘EU-Ukraine relations: a new dynamic
role for Civil Society’

(2009/C 77/33)

At its plenary session held on 16 and 17 January 2008, the European Economic and Social Committee,
under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on:

EU-Ukraine relations: a new dynamic role for Civil Society.

The Section for External Relations, which was responsible for preparing the Committee's work on the
subject, adopted its opinion on 17 July 2008 The rapporteur was Ms Mall Hellam.

At its 447th plenary session, held on 17-18 September 2008 (meeting of 18 September 2008), the Euro-
pean Economic and Social Committee adopted the following opinion by 129 votes to 4 with 8 abstentions.

1. Executive summary

1.1 With this opinion, the EESC wishes to encourage better
implementation of the joint ownership and partnership prin-
ciple between Ukrainian civil society, the Ukrainian government
and the EU institutions, by deepening the EU-Ukraine relation-
ship and making the EU's policy towards Ukraine an effective
instrument to support the reform process and the modernisa-
tion of Ukraine.

1.2
The European Union is both a goal and an agent of
change for Ukraine. The EESC believes that Ukraine's integration
with the European Union and its reform process requires a
strong and sustainable civil society (1),
involving a long-term
civil society development policy for Ukraine, both on the part
of the EU and the Ukrainian government.

Giving a stronger role to civil society calls for a favour-

1.3
able overall policy environment in EU-Ukraine relations.

1.4
The prospect of EU membership for Ukraine would be
important in this respect. Similarly, the visa-free prospect should
be made credible and the visa-free roadmap offered to Ukraine.
The EESC proposes that these elements be included in the new
Association Agreement (2) between the EU and Ukraine so that
it may serve as an instrument to promote the reform process
and give a solid role to civil society.

1.5 Where specific civil society policies are concerned, the
Ukrainian government should aim at creating a ‘civil society-
friendly’ regulatory environment in Ukraine, and civil society

(1) Civil society in this opinion is representing 3 groups according to their
activities: 1) interest organisations which represent and promote the
interests and values of particular groups or society as a whole, 2)
service organisations which provide services for their members or a
broader spectrum of clients, and 3) support organisations which
provide resources to assist the needy or to enable certain activities. Civil
society organisations include trade unions, employers, business associa-
tions, advocacy organisations, organisations providing social services
or representing vulnerable segments of society, and special interests,
like youth organisations or consumer associations. Zimmer, A. and
Priller, E. (eds.), Future of Civil Society. Making Central European
Nonprofit Organisations work. VS Verlag fűr Sozialwissenschaften,
p. 16.

(2) Previously this agreement was called ‘a new enhanced agreement’. The
EU-Ukraine Summit Joint Declaration (9 September 2008) calls for
conclusion of an Association Agreement between the EU and Ukraine.

players should be given a lasting role in the policy process and
civil dialogue. Meanwhile, the EU should help to develop a capa-
city-building strategy for Ukrainian civil society. Particular atten-
tion and constant support must be given to developing social
dialogue at all levels.

1.6
The EESC recognises the progress made by Ukraine
towards consolidating democracy, strengthening the rule of law
and respect for human rights, which will contribute to enhanced
relations with the EU, deeper economic integration and privi-
leged political links.

1.7
The EESC calls for the rapid conclusion of the negotia-
tions on Association Agreement. It also proposes, in close colla-
boration with Ukrainian civil
this agreement
includes a provision setting up a civil society joint body which
would give a strong voice to civil society in the context of EU-
Ukraine relations.

society,

that

2. EU and Ukraine: overall progress of cooperation and

opportunities presented by the current situation

2.1
Promoting democracy, good governance and market
economies in its neighbourhood remains a core priority of the
European Union's external policies. To this end, the EU launched
the European Neighbourhood Policy, based on the key principles
of partnership and joint ownership, differentiation and tailor-
made assistance.

2.2 Within the European Neighbourhood Policy, consulta-
tions with Ukraine on the EU-Ukraine Action Plan were
launched in January 2004, and in December 2004 this Action
Plan was adopted by the Council of the EU. The aftermath of
the ‘Orange revolution’ in December 2004, which demonstrated
the strong potential of civil society in Ukraine, and the pro-
European stance taken by the Orange government of President
Viktor Yushchenko and Yulia Tymoshenko encouraged the EU
to supplement the Action Plan with additional incentives. The
Action Plan was officially adopted at the EU-Ukraine Coopera-
tion Council on 21 February 2005 for a period of three years. It
provided a comprehensive and ambitious framework for work

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with Ukraine, identifying all the key areas for reform (political
dialogue and reform, economic and social reform and develop-
ment,
trade market and regulatory reform, cooperation in
justice and home affairs, transport, energy, information society
and environment, people-to-people contacts).

24 and 25 October 2007 a delegation of the NTSEC led by the
Ukrainian Minister of Labour visited the EESC. A special
meeting of the Contact Group on European Eastern Neighbours
was devoted to Ukrainian civil society.

2.3
Ukraine was given the prospect of opening negotiations
framework (Association Agreement)
on the new contractual
subject to free and fair parliamentary elections in 2006 and the
prospect of opening negotiations on the deep free trade area
once Ukraine joins the WTO. Visa facilitation, increased funding
and more people-to-people opportunities were other incentives
offered to Ukraine within the framework of the Action Plan.

2.4
Negotiations on the Association Agreement were
launched in March 2007 and negotiations on the deep free
trade provisions were launched in February 2008 following
Ukraine's accession to the WTO. Nine rounds of negotiations
took place between March 2007 and July 2008. As of 2008 the
visa facilitation agreement signed in 2007 came into force.

2.5
The negotiation process on the Association Agreement
will have far-reaching implications for EU-Ukraine relations and
for Ukraine's domestic reform process. It offers a unique oppor-
tunity for Ukrainian public authorities to set up a transparent
and systematic consultation process with civil society organisa-
tions that could ensure internal support for reforms envisaged
in the new agreement. It also offers Ukraine's civil society the
chance to consolidate in order to identify their interests and
bring them to the attention of the authorities negotiating the
agreement.

It is important to ensure that the EU-Ukraine negotiation
2.6
the potential
process is transparent and takes into account
implications that the agreement will have for various societal
groups and different areas of the internal reform process in
Ukraine. This agreement will be an unprecedented one as the
level of political cooperation and the size of the stake in the
common market is not predefined. The EU does not have a
blueprint to follow while negotiating this agreement thus invol-
vement of different stakeholders in Ukraine and the EU will be
needed. Moreover,
the new agreement with Ukraine is to
become the template for agreements negotiated by the EU with
other neighbours.

3. EESC activities concerning Ukraine

3.1
Since 2003, the EESC has been developing relations with
Ukrainian civil society organisations. In 2004, the Committee
devoted a study and an opinion to civil society in Ukraine,
Russia, Moldova and Belarus. EU-Ukraine relations have speeded
up in recent years. Negotiations on the Association Agreement
are ongoing, and civil society and the EESC have been called to
play a wider and more important role in future relations. In
February 2006, the EESC organised a conference in Kiev on the
role of Ukrainian civil society in the implementation of the
European Neighbourhood
declaration
committed the EESC to supporting the development of civil
society in Ukraine.

Policy.

final

The

Some months later,

3.2
Social and Economic Council

the Ukrainian National Tripartite
(NTSEC) was established. On

3.3
There is general agreement on the willingness to start
structured cooperation between the EESC and the NTSEC.
However, the EESC wishes to make sure that Ukrainian civil
society is represented more broadly,
including active non-
governmental organisations along with trade unions and
employers, which are represented on the NTSEC. Ukrainian civil
society should therefore create a platform representing both the
NTSEC and representatives of other civil society organisations
(CSOs).

4. Political situation and economic and social affairs in

Ukraine

Since 2004 and following the Orange Revolution,
4.1
Ukraine has emerged as a young democracy,
leaving the
majority of its post-Soviet neighbours behind. Free and fair elec-
tions have become common practice in Ukraine and the
freedom of speech and of assembly that were won during the
Orange Revolution have been preserved.

However, since 2005, when the euphoria of the Orange
4.2
Revolution died down, Ukraine has found itself mired in poli-
tical instability and rivalry, leading to major political crises that
left all the branches of power in conflict with each other and
discredited Ukraine's judiciary and law-enforcement authorities.
Since then, political instability and the inability to launch far-
reaching reforms have marked Ukrainian politics. The European
Neighbourhood Policy and its Action Plan, while providing
some sort of a blueprint for reforms in Ukraine, by and large
failed to rally the political elite and society at large to the goal
of European integration.

4.3
Ukraine's economy has continued to grow. However, the
level of inflation has become increasingly high, reaching over
16 % in 2007 and continuing to grow in 2008, the government
having failed to introduce anti-inflation measures. Although
Ukraine has seen a sharp decline in poverty in recent years,
more than 20 % of Ukrainians still remain below the poverty
line and the average income in Ukraine being around EUR 150
per month. Ukraine still remains a country where the regulatory
environment poses a lot of obstacles for foreign direct invest-
ment and setting up businesses. Overall, Ukraine has failed to
introduce far-reaching macroeconomic reforms and economic
growth has taken place mainly due to factors beyond govern-
mental policy.

Despite numerous political declarations, there has been
4.4
no substantial progress in tackling corruption in Ukraine.
According to the 2007 Transparency International survey, some
70 % of Ukrainians do not believe that the authorities are effec-
tive in their struggle against corruption. Established lobbying
interests and cronyism predominate in influencing the decision-
making process. There is urgent need to improve the structure
of representation, forms of mediation between the State and
society, the rule of law and anti-corruption practice in Ukraine.

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5. State of civil society and its role in Ukraine's European

integration

5.1 State of civil society in Ukraine

there

claimed

statistics

According

to official

are more
5.1.1
than 50 000 registered civil society organisations. State officials
have
that 90 % of CSOs have budgets of
USD 50 000-USD 300 000 per year. On the other hand, the
fact that over 80 % of Ukrainian citizens are not active in any
type of voluntary organisation shows that Ukrainians have a
low level of civic involvement compared to citizens of Western
democracies and Central-Eastern European states.

There are many reasons for the low levels of civic
5.1.2
involvement in Ukraine: popular distrust of organisations and of
the political process in general resulting from the Soviet legacy
of ‘forced ritual activities,’ disillusionment with the results of
democratic and market reforms, the absence of a strong middle
class and the persistence of informal social networks These char-
acteristics, together with the State's distrust of grassroots acti-
vism, have led Ukraine to stagnate in its current semi-demo-
cratic state.

5.1.3
However, some progress is being made. In 2005-2006,
a number of civil society organisations were working on a Civil
Society Doctrine to formulate requirements to public authori-
ties. The majority of the doctrine's proposals have been included
in the Concept for the Support of the Civil Society Institute by
Public Authorities. In November 2007, suggestions to the new
government and parliament on civil society development and
civil dialogue were formulated at the nationwide conference on
‘Public Policies to Promote Civil Society Development. New
Priorities’.

In order to complete CSO legislation, there is a need
5.1.4
for a new civic organisations act providing for a simpler and
less expensive CSO registration procedure, permission for legal
entities to set up organisations, cancellation of the current terri-
torial restrictions on the activities of CSOs, and permission to
protect the rights of all individuals.

5.1.5
Another issue for civil society development in Ukraine
is the lack of State funding. According to some sources, funding
from the State constitutes only 2 % of CSOs' revenues. This is
extremely low when compared to the figure of 30-40 % in
neighbouring Central European countries. In the majority of the
old EU Member States, such funding is the key source of CSO
revenues.

5.2 Social dialogue

5.2.1
Trade unions have been brought together under the
Federation of Trade Unions (FTUU), the National Confederation
of Trade Unions and Free Trade Unions of Ukraine. The
National Confederation of
the Trade-Union Organisations of
Ukraine (NKPU)
is a national trade union centre in Ukraine
founded in 2004. It was formed as a breakaway union from the

Federation of Trade Unions of Ukraine. Despite these formally
developed structures, trade unions have so far played a modest
role in protecting the interests of their members, for instance in
promoting safety in the workplace.

5.2.2 Where Ukrainian employers and business associations
are concerned, some are fairly strong and able to promote their
interests
(Federation of Employers of Ukraine, Ukrainian
Chamber of Commerce and Industry, etc.). However, there is no
lobbying legislation or
forms of structured consultation in
Ukraine for the promotion of respective interests.

Pursuant to the Presidential Decree (3) on the Develop-
5.2.3
ment of social dialogue in Ukraine, the National Tripartite Social
and Economic Council (NTSEC) was established in 2006 as an
advisory and consultative body under the President of Ukraine.
Also, territorial tripartite social and economic councils were set
up at regional level in Ukraine.

5.2.4
These institutions aim to develop social dialogue and
involve workers' and employers' representatives in the shaping
and implementation of the State social and economic policy.

5.3 The role of civil society in Ukraine's European integration process

5.3.1
Although civil society in Ukraine is somewhat weak, as
indicated above, a number of active civil society organisations
have played an important role in promoting European values,
monitoring public authorities and advocating specific policies,
providing expertise to public authorities, monitoring public
opinion and raising public awareness about the EU. Such activ-
ities are usually carried out with financial support from the
international donor community, despite the fact that they are
often in line with the objectives of relevant State programmes
and that there are legal means of supporting CSO activities
from the State budget.

The impact of these actions on the actual progress of
5.3.2
Ukraine's European integration or Ukraine's Europeanisation is
rather limited. This has to do with the weak position and low
capacity of civil society which is not consolidated or organised
enough to influence the decision-makers. Moreover, the link
between civil society organisations and average citizens is rather
blurred. Thus civil society organisations and activists have little
potential to mobilise citizens and shape public opinion. In addi-
tion,
the unstable political situation creates another major
obstacle preventing civil society from having an impact.

society organisations do manage

5.3.3 When civil
to
promote certain policy decisions, it is due to individual politi-
cians or civil servants who are open and cooperative. The
appointment of the Vice Prime Minister for European integra-
tion in December 2007 stimulated civil society participation.
Civil
society experts are now involved in drafting State
programmes in the field of European integration and are
consulted on various matters within the remit of the Vice Prime
Minister.

(3) Decree of the President of Ukraine No 1871 dated 29 December 2005.

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5.3.4
Apart from what appears to be an active role played by
a limited number of NGOs, civil society at large perceives Euro-
pean integration as something abstract. Unless different civil
society organisations (trade unions, professional associations,
consumers' organisations, etc.) comprehend that European inte-
gration is relevant to everyday life and the reforms will have
implications for everyone, their role will remain passive.

6. Conclusions and recommendations for a new dynamic

role for civil society in EU-Ukraine relations

Giving a stronger role to civil society requires both a
6.1
favourable overall policy environment in EU-Ukraine relations,
and specific measures aimed at strengthening the role of civil
society.

6.2 Where the overall policy environment and the dynamic of EU
Ukraine relations are concerned, the following elements seem to
be essential:

6.2.1
The prospect of EU membership should be offered to
Ukraine in the Association Agreement. It will empower pro-
reform constituencies,
including reform-minded civil society.
The incentives that potential EU membership offers will help to
implement reforms in society and override the veto players.
According to both Ukrainian and international experts, even the
reference to Article 49 TEU which stipulates that any European
country that fulfils the criteria can apply, would already send a
strong signal to Ukraine.

mentation and monitoring),
policy is concerned.

in particular where EU-related

6.3.2
Civil society players must be consulted in the process
of negotiating of the Association Agreement between the EU
and Ukraine, developing priorities for cooperation on an annual
basis (currently through the work of joint institutions set up by
the PCA and once the Association Agreement comes into force,
under
the new agreement),
conducting a mid-term review of the current financial perspec-
tive (ENPI Country Strategy Paper 2007-2013 for Ukraine), and
developing annual programmes within the ENPI (in particular,
defining priorities for funding to Ukraine as budgetary support
within the ENPI).

the institutional provisions of

Independent monitoring by civil society should be
6.3.3
encouraged and supported and taken into consideration by the
EU and Ukraine.

Secondly,

6.3.4
the EU and the Ukrainian government
should aim at creating a ‘civil society-friendly’ regulatory envir-
onment in Ukraine. This would provide, inter alia, opportunities
for domestic funding (including State funding via subcontracting
of services, for instance) to Ukrainian civil society organisations
and thus reduce the current dependency of Ukrainian CSOs on
foreign donors.

6.2.2
The visa-free prospect should be made credible and the
visa-free roadmap should be offered to Ukraine. With the
current obstacles to travel, civil society players have limited
possibilities for building effective partnerships with their EU-
based counterparts. Overall, the visa-free regime will enhance
people-to-people contacts and help to introduce European
norms, values and practices in Ukraine.

Thirdly, the EU should help to develop the strategy of
6.3.5
capacity-building for Ukrainian civil society. For the time being,
Ukrainian civil society is rather fragmented with little or no
impact on the policy process. The EU's policy and that of the
Ukrainian government should be aimed at making civil society a
strong partner, with capacity-building an extremely important
component. This would include the following:

Both the EU and Ukraine should do their best

to
6.2.3
ensure that Ukraine benefits to the fullest from the EU Com-
munity Programmes and Agencies available to it (4). At
the
same time new possibilities for strengthening the people-to-
people dimension must be found and expanded.

— better and more accessible funding opportunities on the
part of the EU, especially for grass-roots level CSOs, focusing
not only on projects but also on institutional development
and overall sustainability;

Specific measures aimed at strengthening the role of civil

6.3
society should be based on the following three pillars:

6.3.1
Firstly, civil society players should be given a strong
role in the policy process (policy development, policy imple-

— capacity-building training programs for Ukrainian CSOs,
which would focus on project management, networking,
advocacy skills, etc. and make Ukrainian civil society better
informed of the opportunities already offered to it by the
EU (including funding opportunities);

(4) Communication from the Commission to the Council and to the Euro-
pean Parliament on the general approach to enable ENP partner coun-
tries
and Community
programmes COM(2006) 724 final.

in Community agencies

to participate

— assistance aimed at strengthening individual civil society
and platforms
including building coalitions

initiatives,
among Ukrainian CSOs.

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6.3.6 Moreover, the Association Agreement between the EU
and Ukraine must serve as an instrument of the reform process
and give a stronger role to civil society. Apart from the EU
membership prospect as mentioned above, the Council decision
on the Association Agreement should make the reference to the
Article 310 of the TEC (5). This article gives the mandate to the
EU to conclude association agreements with third countries.

The agreement should explicitly mention the commit-
6.3.7
ment of both sides (the EU and Ukraine) to further strength-
ening civil society in Ukraine and enabling it to participate in
the civil dialogue and policy process.

In this context,

The agreement should include the creation of a civil
6.4
society joint body as part of the EU-Ukraine institutional frame-
work.
the EESC recommends building a
sustained and forward-looking relationship with Ukrainian civil
society, beginning by structuring our relations, for example, via
the organisation of a workshop in October 2008, to discuss
further the establishment of this joint body with Ukrainian civil
society

6.4.1
The joint body would be composed of an equal
number of members from the EESC and from a body repre-
senting organised civil society in Ukraine. The Ukrainian delega-
tion could be composed of members of NTSEC (representatives
of employers, trade unions and the government) with the addi-
tion of representatives of civil society not represented within

Brussels, 18 September 2008.

NTSEC. The joint body would be jointly chaired by two co-
chairs appointed from each side. The joint body will meet twice
a year (once in Brussels and once in Ukraine) and could be
consulted by the Joint Council or by own initiative to discuss
different topics of mutual interest and relevance for civil society.
The main purposes of the EU-Ukraine civil society joint body
could be:

— to ensure the involvement of organised civil society in

EU-Ukraine relations;

— to foster public debate and awareness in Ukraine about rela-

tions with the EU and Ukraine's European integration;

— to promote the involvement of Ukrainian civil society in the
implementation of the National Action Plan and the new
Association Agreement once it enters
into force, and
enhance civil society participation in the national decision-
making process;

— to facilitate the process of

institution-building and the
consolidation of civil society organisations in Ukraine in
various ways,
including informal networking, visits, work-
shops and other activities;

— to enable Ukrainian representatives to become acquainted
with the process of consultation taking place within the EU
and, more generally, with the dialogue between social and
civil partners in the EU.

The President of the

European Economic and Social Committee

Dimitris DIMITRIADIS

(5) See Sushko, O., Khorolsky, R., Shumylo O., Shevliakov, I. (2007), The
New Enhanced Agreement between Ukraine and the EU: Proposals of
Ukrainian Experts. KAS Policy Paper 8 for further details. See also
the New Contractual Relations
Hillion, C.
between the European Union and Its Neighbours: Learning from the
EU-Ukraine “Enhanced Agreement”’,
in European Foreign Affairs
Review 12, pp. 169-182.

‘Mapping-Out

(2007),

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APPENDICES

APPENDIX I

COMPOSITION OF THE CIVIL SOCIETY IN UKRAINE AND LEVEL OF ACTIVITY BY REGION

52 693

20 186

18 960

15 867

10 705

6 003

5 480

982

473

NGOs and their centres

religious organisations

trade unions

political parties and their offices

charity organisations

unions of co-owners of multi-storey buildings

consumer societies

credit unions

consumer society unions

Data as of 1 July 2007. All registered civil society organisations are included. However, experts claim that out of this multitude of registered organisations
no more that 2 500 are socially active.

The most active regions include:

L'viv and Kyiv City

Zaporizhzhia oblast (region)

Dnipropetrovsk oblast

Odesa oblast

Luhansk oblast

more than 4 000 CSOs

about 1 500 CSOs

almost 1 000 CSOs

approximately 1 000 CSOs

more than 750 CSOs

Source: Latsyba, M. (2008), Development of Civil Society in Ukraine. Ukrainian Independent Centre for Policy Studies.

APPENDIX II

PRIORITY AREAS OF ACTIVITY FOR UKRAINIAN CSOS

Work with children and young people

Solution of social issues

Protection of human rights

Public education

Development of the CSO sector

45 %

35 %

31 %

28 %

19 %

As of 1 January 2007, the Ministry of Justice registered 1 791 All-Ukrainian CSOs:

412

332

168

153

153

137

114

professional organisations

physical training and sport organisations

education and culture associations

science, technology, and art associations

youth organisations

organisations for national and friendly relations

trade unions and their associations

77

56

45

36

13

9

3

associations of veterans and disabled individuals

environmental organisations

women organisations

Chernobyl disaster protection organisations

children organisations

employer organisations

historical and cultural monument protection orga-
nisations

Sources: Latsyba, M. (2008), Development of Civil Society in Ukraine. Ukrainian Independent Centre for Policy Studies and Creative Centre Counter-
part (2006), NGO Status and Development Dynamics, 2002-2005. Cited in Latsyba op.cit.

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APPENDIX III

COMPARATIVE STRUCTURE OF CSOS REVENUES

Studied Counties

Public Subsidies

Payment for CSO
Services

Private Subsidies, Cost of
Volunteers' Working
Time Excluded

CSO Funding Sources, %

UK

Germany

France

Poland

Romania

Hungary

Slovakia

Czech Republic

Russia

UKRAINE

45 %

64 %

58 %

24 %

45 %

27 %

21 %

39 %

1 %

2 %

43 %

32 %

35 %

60 %

29 %

55 %

54 %

47 %

36 %

25 %

11 %

3 %

8 %

15 %

26 %

18 %

25 %

14 %

63 %

72 %

Source: Latsyba, M. (2008), Development of Civil Society in Ukraine. Ukrainian Independent Centre for Policy Studies based on the following
sources:
Lester M. Salomon et al. (2003), Global Civil Society. An Overview. The Johns Hopkins University, USA;
Civil Society Institute (2005), NGO Funding in Ukraine. Analytical Study. Kyiv;
Municipal Economy Institute Foundation (2003), The Role of Non-Commercial Sector in the Economic Development of Russia. Moscow.