Eberhard HEYKEN: “Ukraine needs to do very much to grow to the level of EU membership”

Historically, Ukrainian and German destinies have at times been intertwined. Also historically, the Ukrainian political leadership of all Europe knows its German counterpart the best. And yet history has denied Ukraine an opportunity to consider itself Germany’s equal partner. The road of rapprochement with Europe in, and Germany in particular, appears to be too winding and thorny How does Berlin view Kyiv’s European effort? When should the Ukrainian Ostarbeiters expect the compensation promised by Germany? Is there anything in common between upper-echelon corruption in Ukraine and Germany? This and more in an interview below with The Day’s ranking guest, Herr Eberhard Heyken, Ambassador Extraordinary and Plenipotentiary of Germany to Ukraine.

The Day: Mr. Ambassador, as soon as Leonid Kuchma was reelected Western leaders expressed hope that reforms could after all be carried out in Ukraine during his second term. Simultaneously, the West is placing great hopes in the reform Prime Minister. How does Germany view the new Premier?

E. H.: Mr. Yushchenko’s candidacy passed in Parliament shortly before we celebrated Christmas in the West. At this time of the year Berlin’s political climate is rather moderate. Of course, Federal Chancellor Gerhard Schroeder sent a very cordial telegram, wishing him every success. Our Foreign Minister Joschka Fischer passed a telegram to his newly appointed Ukrainian counterpart Borys Tarasiuk. I am generally convinced that the German leadership regards Viktor Yushchenko’s Cabinet as a green light on the road to progress, and that Ukrainian-German cooperation will continue to expand.

It is true that the West considers Viktor Yushchenko a reformer and I think this is correct. At the same time, I read in The Day that politicians like Yushchenko, Mitiukov, and Tyhypko are ‘favorites’ of the West. The way it sounds, one could assume that they conduct their policy so as to win such popularity. This is not so. They are sufficiently intelligent and experienced to realize that reform must be conducted precisely in the interests of Ukraine. Yushchenko, Mitiukov, and Tyhypko are embarking on reforms directed towards a market economy, the way it was earlier done by the governments of Poland, Hungary, and the Czech Republic. Their reforms are quite effective now. Thus the formulation the Western ‘favorites’ is not well chosen.

The Day: What do you think of the new Cabinet?

E. H.: Mr. Yushchenko publicly declared that professionalism and loyalty are important to him. I think that it was according to these criteria that he formed his new government. And there is a definite coalition touch to it, yet it is too early to speak of the new Cabinet’s prospects. Personally, I believe that the Cabinet membership was chosen well.

The Day: Would it be safe to assume that Ukraine’s political troubles, economic instability, and imperfect legislation have not as yet killed German business people’s interest in this country?

E. H.: There are certainly hopes for better prospects, but it takes some waiting. The past couple of years have not been exactly stimulating in terms of investment climate. Leonid Kuchma’s reelection and Viktor Yushchenko’s premiership are not enough to restore investors’ confidence. Specific steps must be taken and I think that they will take them. After that German interest in the Ukrainian market will be revived.

In his inaugural address President Kuchma spoke of the importance of reforms in Ukraine, of radical measures in reforming the Ukrainian economy. Ukraine is a large market with a population of fifty million. Most of your people are well educated and there is geographical closeness between our countries. Not so long ago, a team of German economic consultants — it has been working for five years here — issued a program called “The Next 1,000 Days: An Economic Reform Agenda For Ukraine.” This project was positively received by Ukraine’s government and economic experts. A thousand days comes to almost three years. In other words, the very title implies that reforms cannot be carried out in a couple of months, but it is very important to get serious about making reforms.

The Day: Yet all the previous years our government was criticized for dragging its feet on economic reform. What do you think are the first signs that the government is determined to move in the right direction?

E. H..: One such sign could be the administrative reform which President Kuchma started in December. The next in line could be the decree privatizing the land. Also, you need a real budget and quick enactment of the Civil Code.

The Day: How do you view the pace at which Kyiv is moving toward the European Union? Also, we are very concerned about the harsher visa procedures. Don’t you think that this could upset the balance in the EU integration possibility?

E. H.: Ukraine is a part of Europe. Trite as it may sound, the fact remains. Ukraine wants to be Europe-oriented. Leonid Kuchma said so recently. But you can’t regard everything only in economic terms. Among other important aspects are the creation of a state ruled by the law and adoption of CE standards. The Constitutional Court’s recent ruling making capital punishment unconstitutional lifted some of the strain in the relationship between Ukraine and the Council of Europe. However, the main question is on what conditions Kyiv can become an EU member and when the Union will be able to accept the membership of a large country such as Ukraine. At present, the historical process of EU expansion is underway and the European Union will conduct negotiations with twelve countries. Today’s fifteen EU members are more or less homogenous. By admitting new members EU is crossing the line of the former Iron Curtain. This is a great challenge to both the Union and its prospective members. Ukraine must accomplish a great deal in order to grow into EU membership. If one considers the requirements made on Poland, the Czech Republic, and Hungary, one will understand that each country must do much work to meet the European standard. I have been in Ukraine for almost four years and I must say that the transformation process underway here should not be understated. A lot has been done by Ukraine in its movement toward the European Union. The picture looks better now than three or four years ago. This is the result of a wise and consistent foreign policy.

Suppose we recall the Joint Strategy for Ukraine adopted by the Helsinki summit on December 11. This document must not be underestimated simply because it does not provide for a clear perspective for Ukraine’s admission to the EU. This strategy should be regarded as proof of the Union’s policy and intention to keep up cooperation with Ukraine. There is a key line in this document, reading that EU acknowledges Ukraine’s efforts directed toward Europe and welcomes Ukraine’s European choice.

The Day: Is the German-Ukrainian Forum any help in Ukraine’s movement toward Europe?

E. H.: Its first public session took place on December 15 in Berlin, attended by quite a few noted Ukrainian figures, including the current Premier, Viktor Yushchenko. In Berlin this event attracted general attention. The forum serves the common interests of Ukraine and Germany. I think its importance will increase. The forum will make a positive contribution — first, the elite of both countries will be able to know each other better, and, second, Ukraine’s rapprochement with Europe will receive an impetus.

The Day: Ukraine is generally regarded in the West as a corrupt country; how does this affect the interest of German companies in the Ukrainian market?

E. H.: Recently I read a poll carried out in the German business circles. The general view is that the corruption factor is very important when deciding on foreign investment. Without doubt, corruption could be an obstacle to such investment.

The Day: Germany’s Greens are the most active in Europe campaigning for the closure of Chornobyl. How will the situation develop if the money promised by G-7 to finance the construction of compensating energy facilities is not received with the West pressing for closure?

E. H.: As you know, the 1995 Memorandum of Mutual Understanding reads that Ukraine undertakes to close the Chornobyl station in 2000. The world’s seven leading countries also undertook to help Ukraine by supplying compensatory facilities. Germany is among these countries. Of late, the opinion has formed that to provide such facilities, power units must be added to the nuclear plants at Khmelnytsky and Rivne. The previous German federal government agreed, but the new one holds a different view. It is true that the Greens are against it. They want nuclear energy discarded and the new government goes along with it. The Greens say, “If we want to close down nuclear power stations in Germany, we must not do anything to help open such stations in other countries.”

However, both the federal government and the Greens strive to uphold Germany’s commitments in supplying compensatory generating capacities. The matter was brought up during the intergovernmental consultations when Chancellor Schroeder visited Kyiv last July, accompanied, among others, by Minister for Protection of the Environment Trittin and Minister of the Economy Miller. The issue will be further discussed. Germany may provide support in non- nuclear generation in Ukraine, using coal, gas, and also in terms of power line repair. In other words, the German government does not refuse to honor its commitments in principle, in helping Ukraine seek new compensatory generating capacities.

The Day: German periodicals refer to Ukraine only in certain cases: Chornobyl, attainments of Ukrainian athletes, and big scandals. Also, mostly small-time newspapers may carry features about Ukraine sent by their special correspondents in Kyiv. Do you think this media interest will broaden after Ukraine becomes a true democracy with a developed economy?

E. H.: I am positive that Ukraine will receive far broader coverage in Germany. Of course, I am not satisfied by the degree of interest Ukraine attracts in the German and all the other Western media. You see, the general public takes its time getting used to developments and changes elsewhere in the world. Ukrainian independence is nine years old and this is perhaps the main reason. But the Ukrainian theme will be brought forth in the Western media.