Fiscally Sustainable Social System: Ongoing Consultations Between Ukraine and the European Commission

Minister of Social Policy, Family and Unity of Ukraine Denys Uliutin held a working meeting with Stephanie Pamies, Head of the Neighbouring Countries and Macro-Financial Assistance Unit of the European Commission’s Directorate-General for Economic and Financial Affairs (DG ECFIN).

The discussion focused on key aspects of social policy that are critical for economic development and fiscal sustainability, including pension reform, the structure of social expenditures, and the budgetary implications of social programs. The Minister emphasized that pension reform remains one of the Government of Ukraine’s top priorities.

“The pension system must be transparent and fair for all citizens. We plan to finalize the draft law on pension reform by the end of December 2025. Basic state payments will be determined according to the fiscal capacity of the state budget. At the same time, the contributory part of pensions will depend directly on citizens’ contributions, ensuring transparency and financial sustainability,” said Denys Uliutin.

The meeting also discussed the key elements of the future pension system, including a basic payment for older people to ensure a decent standard of living and protection against poverty. The discussion highlighted the restoration of solidarity principles, under which the pension amount depends on individual contributions.

The parties agreed to continue their dialogue within regular consultations between Ukraine and the European Commission to enhance the alignment of social and economic policies.

Background: The Directorate-General for Economic and Financial Affairs (DG ECFIN) is the European Commission department responsible for EU policies aimed at promoting economic growth and recovery, increasing employment, and ensuring stable public finances and financial stability.

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