Yanukovych declares start of first stage of economic reform in Ukraine

Ukrainian President Viktor Yanukovych has declared the start of the first stage of economic reform in the country, while presenting a program of economic reform on Wednesday.

"I declare the start of the first stage of reform, which should lead us to success," he said at a meeting of the Committee for Economic Reform.

Yanukovych said that the first goal of the program was to put Ukraine on the list of the world's 20 most developed countries within a decade.

He said that as a result of reform, living standards in Ukraine must meet European standards. He also stressed the need to stabilize the national economy.

"We will reduce the budget deficit and stabilize the public debt, weakening the tax burden and extending the tax base. We will reduce inflation, provide credits to the economy and develop the financial market. We will improve the financial and expenditure autonomy of the regions," Yanukovych said.

He said that reform would reduce the administrative burden on businesses.

He also said that among other plans were the completion of privatization and the effective management of state property. He promised to promote free trade with the EU, which he said would contribute to a speedy early establishment of a visa-free regime with European countries.

Yanukovych assured that reform would help restructure the fuel and energy complex and housing and utilities economy. He said that these reforms would not be conducted at the expense of vulnerable categories of citizens.

The president noted that reform also foresaw a reduction in the structure of government agencies and the strengthening of the professionalism of civil servants.

"Increasing life expectancy is among the indicators of the success of our reforms," he added.

"An important element of the success of reforms will be the achievement of GDP growth of at least 5% per year. In 2014 we will reduce inflation from 13% to 6%", he said.