The results of 2014 Ukrainian presidential election and European parliamentary election were characterized by a sharp contrast. While the Ukraine’s citizens proved their willingness to associate with EU, Europe’s voters voiced their disappointment with the methods used by the European Union to carry out its affairs. According to George Soros, this sharp contrast creates an opportunity for both the European people and leaders to internalize the results and figure out how assisting Ukraine can benefit Europe.
Reasons for EU creation
The EU was created to serve as a close associate of sovereign states ready pool their power together with a common goal of benefiting the world. The formation of EU was an audacious experimentation of international governance as well as the rule of law, meant to replace the use of force and nationalism.
Sudden transformation of EU
George Soros believes the euro crisis altered the EU agenda. Currently, an association of creditors and debtors whereby the creditor countries enforce conditions that maintain their dominance characterizes the European Union. The European Parliament election experienced low turnouts signifying that majority of European citizens are against the current operation of the Union.
As the Europe’s brave trial in international governance seems to waiver, Russia is proving to be a daring rival to the EU survival. Apart from having global geopolitical goals, Russia is ready to use force. Putin seems to be using a national ideology revolving around ethnicity to strengthen his government. His determinations to weaken America’s international dominance and to establish a stable alliance with China is receiving massive support from several countries.
Ukraine Deserves Debt Relief
The policy that saved Ukraine
Both the EU and the United States executed several sanctions on Russia for its involvements in Ukraine affairs. The sanctions seem to work fast and are already inflicting damage on the Russian economy. Russian companies and banks were banned from accessing the international capital markets. The sanctions have significantly lowered the oil price. For Russia to balance its economy perfectly, a barrel of oil must cost approximately $100. The oil prices decline, as well as the sanctions is slowly pushing Russia into financial crisis closely resembling one that took place in 1998. George Soros’s ideas on how Ukraine government can stabilize.
The Ukraine’s revenue cannot support a large number of employees and still manage to facilitate economic growth. The high wages are forcing the nation to borrow massively. Soros believes the nation can attain its stability by reducing the civil servants number. The ministries must be reduced to a manageable number and more employment opportunities created in the private sector.
EU to increase its support
European political leaders should capitalize on the EU’s unused borrowing capacity and other sources of funds to provide a bigger financial package to Ukraine. The monetary support will assist Ukrainian government to finance its radical reform.
Shifting of negotiations
Soros believe a permanent solution for the Ukrainian crisis can be found when negotiations are shifted to the political level instead of retaining them at the bureaucratic level. George Soros is a self-established billionaire, accomplished investor, and an active philanthropist. He is the founder and chairperson of successful Soros Fund Management. Additionally, Soros serves as Open Society Foundations chairperson.
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