Law on rise in social standards a positive phenomenon, but not long-lasting, says expert

Kyiv, November 4 (Interfax-Ukraine) – The adoption of the law on a rise in social standards can be estimated as a positive phenomenon, but not a long-lasting one, according to Valeriy Bebyk, Doctor of Political Science, professor, pro-rector of the Ukraina University, and the chairman of the board of the Ukrainian Association of Political Sciences.

"Of course, it is positive that a rise in social standards can be guaranteed at a certain legislative level… But of course, this positive trend won't last for a long time, because inflation will eat all of this away, as this law is not financially secured, i.e. funds have to be found from somewhere," he said at a press conference at the Interfax-Ukraine news agency on Wednesday.

The expert said that the signing of the law was a legal step, although "abnormal politics" preceded a final decision.

"I think that the fact that the president signed this law is a normal step. However, this was preceded by some abnormal politics and a government response that the ruling coalition first approved of this law, but then Yulia Tymoshenko, as prime minister, officially asked the president to veto a law that was voted for by the Verkhovna Rada," Bebyk said.

Commenting on the possible consequences of the adoption of the law increasing social standards, Bebyk said that "this will be a burden for enterprises and will influence those enterprises that are really working."

Statements by the International Monetary Fund (IMF) that Ukraine might not receive the fourth tranche of the fund's loan due to the adoption of the law, in his opinion, pose no particular threat to the national economy.

"I don't think that we need these loans, because they will have to be repaid by our children and grandchildren," he said.

As reported, on October 30, Ukrainian President Viktor Yuschenko signed the law on a rise in social standards and sent to the Verkhovna Rada his proposals concerning amendments to the law on the state budget for 2009, which he said would allow the law to be implemented.

The law foresees that the per capita monthly living wage should be set at UAH 701 from November 1, 2009, UAH 825 from January 1, 2010, UAH 839 from April 1, UAH 843 from July 1, UAH 861 from October 1, and UAH 875 from December 1.

Moreover, the minimum wage should be set at UAH 744 from November 1, 2009, UAH 869 from January 1, 2010, UAH 884 from April 1, UAH 888 from July 1, UAH 907 from October 1, and UAH 922 from December 1.

Tymoshenko and IMF representatives asked the president to veto the law.