IMF Managing Director Kristalina Georgieva has arrived in Ukraine. As a Bulgarian with experience of countries emerging from the socialist bloc, she understands the challenges these nations face on the path to reform.
The main topic of her visit is the need to complete economic reforms. Georgieva emphasized that Ukraine's ongoing subsidies for electricity and heating must be phased out. According to her, such subsidies hinder private sector development and discourage investment. She also highlighted the need for a fairer distribution of tax burdens.
Commentators noted that previous attempts to move toward targeted assistance met considerable public resistance. General subsidies result in a distorted system where both the poor and the wealthy receive equal support, putting a significant strain on the budget—resources which could otherwise be directed to the military, education, or business support.
Experts point out that returning to targeted assistance is difficult but necessary. Energy efficiency and responsible resource use are emphasized as key directions for future change. A fair social policy should support only those truly in need, rather than subsidizing all consumers indiscriminately.
In summary, experts support the IMF's position: reforms in Ukraine must be comprehensive, incorporate market mechanisms, ensure effective resource use, and promote social justice to achieve genuine economic growth.
