GEORGIA, UKRAINE AND MOLDOVA, THE EU EASTERN PARTNERSHIP MEMBER STATES: MODERN CHALLENGES

Abstract

The study of various initiatives of the European Union is highly pressing in terms of current globalization and regional integration processes. The Eastern Partnership is an EU initiative aimed at deepening and strengthening relations between the EU, its member states and the six countries of its Eastern neighborhood. The study of the issues concerning the economic development of the three associated countries (Georgia, Ukraine and Moldova) of Eastern Partnership is very important. Therefore, if these countries carry out significant reforms and the EU supports the development of the initiative, the integration of all three countries with the EU will possibly deepen. The paper discusses the indicators and peculiarities of socio-economic development of the EU Eastern Partnership Associated Countries. These countries are actively seeking for further integration into the global economy. Trade relations between Georgia, Moldova and Ukraine and the European Union have significant prospects. The share of Georgian exports to the EU in total exports amounted to 22%. EU plays an important role in Moldova’s exports; in 2019 the share of the EU in Moldova’s exports was 64%, which is the highest among the associated countries. Ukraine's trade with the EU is also high among these countries. In 2019, Georgia's foreign trade turnover (%) accounted for 75% of GDP, which is quite high. Negative trade balance is a very important problem for the country; trade deficit (%) accounted for 32% of GDP. In 2019, the share of trade turnover (%) of Moldova and Ukraine reached 72-72% of GDP. It should be noted that territorial integrity of all these countries within internationally recognized borders is violated which significantly hinders the economic development of the country; in addition, it also poses a serious threat to maintaining security and stability; and hinders their striving towards the EU. The Eastern Partnership allows its member countries, including Georgia, to accelerate the process of trade and economic integration with the European Union through bilateral and multilateral cooperation. The EU Eastern Partnership initiative promotes further integration of the member states into the EU, as well as the socioeconomic development of its member states. The Eastern partner countries have a common communist past. Georgia has the highest negative trade balance in foreign trade in goods among Eastern Partner countries. In addition, Georgia has the highest negative trade balance and negative import-export ratio. In case successful economic reforms are carried out Georgia might be the first Eastern Partner country to be awarded the status of an EU candidate country. None of the Eastern Partner countries is a member of NATO. There is no direct link between the EU and NATO; however, the recent enlargements have shown that before joining the EU the country first becomes a member of NATO. Georgia should continue further integration with the European Union and increase trade and economic cooperation with the EU and its member states. Increasing Georgia's exports to the EU remains a major challenge for the country. The Eastern Partner countries have to continue their effort to develop their economies and further integrate with the EU and the international community. Thus, Georgia has a good opportunity to get closer to the EU, develop the national economy, make it competitive and increase trade and economic cooperation with the EU. The Eastern Partnership allows its member countries, including Georgia, to accelerate the process of trade and economic integration with the European Union through bilateral and multilateral cooperation.