Harmonisation of Ukraine's Currency Regulation and Fiscal Policy With EU Requirements: Challenges and Prospects

Abstract

The subject of the research is a set of institutional, regulatory and practical aspects of aligning Ukraine's currency regulation and fiscal policy with the requirements and standards of the European Union. The purpose of the article is a systematic analysis of the current state of harmonisation processes in the currency-fiscal sphere, identification of key challenges and substantiation of prospective directions for adaptation to EU norms in the context of the ongoing armed conflict and implementation of the European integration course. The research methodology is based on the application of systemic, comparative-analytical and statistical methods, methods of generalisation and synthesis, as well as fiscal analysis tools and comparative legal studies. The study findings demonstrate that Ukraine has achieved partial progress in harmonising currency legislation and fiscal instruments with acquis communautaire; however, significant gaps remain - primarily in capital movement liberalisation, indirect taxation standards, and the institutional capacity of financial regulators. It is established that the interaction between the currency regulation regime and fiscal mechanisms under martial law acquired a specific character: restrictions on cross-border transactions partially perform the function of a protective fiscal instrument, while simultaneously constraining investment activity and the volume of foreign economic settlements. A positive correlation between fiscal consolidation and the NBU's gradual easing of currency restrictions in 2023-2025 has been identified. The scope of application of the results covers public financial management bodies, the NBU, the Ministry of Finance, as well as the scientific community in the field of public finance and European integration. The practical value of the study lies in the possibility of applying the developed recommendations when formulating a state strategy for European integration reforms in the financial and fiscal sphere. The conclusions confirm the need to develop a coordinated strategy for synchronous liberalisation of currency regulation and fiscal consolidation in the context of fulfilling obligations under the Association Agreement and the requirements of EU negotiating chapters.