Ukraine’s Integration into the EU Digital Single Market
Lola Y. Y., Mykhailenko D. H., Bolotna O. V., Diachek V. V.

Lola, Yuliya Yu. et al. (2024) “Ukraine’s Integration into the EU Digital Single Market.” The Problems of Economy 4:64–70.
https://doi.org/10.32983/2222-0712-2024-4-64-70

Section: Economics and national economy management

UDC 339.92:004(477:4-672)

Abstract:
The article is aimed at studying the model of Ukraine’s integration into the Digital Single Market, analyzing the achievements and challenges of digitalization of Business-State-Community. The article examines the process of Ukraine’s integration into the Digital Single Market of the European Union, which is a strategically important stage for strengthening the position of the national economy in the context of global digital transformation. This process opens up new prospects for Ukraine, in particular, access to modern technologies, the development of electronic services and increased competitiveness in the global market. At the same time, integration into the EU digital space requires solving complex tasks, including infrastructure renewal, introduction of innovations, and adaptation of national legislation to European standards. The main benefits of this process are analyzed, such as improving access to digital markets, facilitating bilateral trade and stimulating the development of the IT sector. Particular attention is paid to the role of e-commerce as a key driver of economic growth. The article considers the opportunities provided by e-commerce to Ukrainian enterprises to enter the EU markets, as well as the positive impact of this segment on consumers due to the increase in the range of services and goods. Among the important aspects of integration, the issues of cybersecurity, which are becoming more and more relevant in the face of modern challenges, are considered. Ukraine, which is already facing persistent cyberattacks, needs to increase the level of protection of critical infrastructure, State databases and personal information of citizens. Furthermore, integration into the EU digital market includes the introduction of digital identity, which is a prerequisite for ensuring secure access to digital services. The authors underline the importance of harmonization of legislation for compliance with European standards in such key areas as personal data protection, e-commerce, digital taxation and regulation of the telecommunications market. The relevant changes are aimed at creating a favorable environment for businesses and citizens, stimulating investment and improving interaction with partners in the EU. Despite the noticeable progress in digitalization, Ukraine faces a number of challenges that hinder full integration into the Digital Single Market. In particular, these are cyber threats related to the ongoing military aggression, as well as digital ethics issues that require the development of clear rules and standards for the responsible use of technology. The problem of the digital divide between different regions of the country, which affects the availability of digital services for citizens and businesses, is considered separately. An important aspect is the support from the European Union, which includes financial, technical and expert assistance in implementing reforms and rebuilding infrastructure destroyed by the war. Without this support, it will be difficult for Ukraine to achieve rapid integration into the EU’s Digital Single Space. The article also emphasizes that success in this process depends on the coordination of actions of the government, business and international partners. Ukraine’s integration into the EU Digital Single Market is not only a strategic task, but also an important step towards ensuring economic stability, technological development and integration into the European community on the principles of transparency, innovation and security.

Keywords: European integration of Ukraine, Digital Single Market, digitalization of the economy, EU legislation, digitalization of the public sector.

Fig.: 2. Bibl.: 15.

Lola Yuliya Yu. – Candidate of Sciences (Economics), Associate Professor, Department of State Regulation, Public Administration and Economic Policy, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkіv, 61166, Ukraine)
Email: yuliia.lola@hneu.net
Mykhailenko Daria H. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Marketing, Management and Entrepreneurship, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: d.g.mykhailenko@karazin.ua
Bolotna Oksana V. – Candidate of Sciences (Economics), Associate Professor, Head of the Department, Department of Marketing, Management and Entrepreneurship, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: o.v.bolotnaya@karazin.ua
Diachek Vitalii V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Management and Administration, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: v.v.diachek@karazin.ua

List of references in article

[Legal Act of Ukraine] (2022). https://zakon.rada.gov.ua/laws/show/2155-19#Text
“World e-government leaders based on E-Government Development Index (EGDI) in 2024“. https://www.statista.com/statistics/421580/egdi-e-government-development-index-ranking/
“Digital Quality of Life Index 2023“. https://surfshark.com/dql2023
“Ukraina vkhodyt do triiky top-krain svitu za dostupnistiu internetu“ [Ukraine Is Among the Top Three Countries in the World in Terms of Internet Availability]. https://pryluky.org/2023/11/23/ukrayina-vhodyt-do-trijky-top-krayin-svitu-za-dostupnistiu-internetu/
“Intehratsiia Ukrainy do Yedynoho tsyfrovoho rynku Yevropeiskoho Soiuzu: vyklyky, mozhlyvosti ta bariery. Dopovid Ukrainskoi storony Platformy hromadianskoho suspilstva Ukraina-YeS“ [Integration of Ukraine into the Single Digital Market of the European Union: Challenges, Opportunities and Barriers. Report of the Ukrainian Side of the Ukraine-EU Civil Society Platform]. Briussel, December 03, 2019. https://eu-ua-csp.org.ua/media/uploads/Integration%20to%20EU%20DSM_Ukr%20side_UA.pdf
“Zanepad chy tymchasova kryza: shcho vidbuvaietsia v ukrainskii IT“ [Decline or Temporary Crisis: What Is Happening in Ukrainian IT]. BBC News Ukraina. https://www.bbc.com/ukrainian/articles/cndn8z34lkpo
[Legal Act of Ukraine] (2021). https://zakon.rada.gov.ua/laws/show/1089-20#Text
[Legal Act of Ukraine] (2018). https://zakon.rada.gov.ua/laws/show/2163-19#Text
[Legal Act of Ukraine] (2022). https://zakon.rada.gov.ua/laws/show/1667-20#Text
[Legal Act of Ukraine] (2017). https://zakon.rada.gov.ua/laws/show/675-19#Text
[Legal Act of Ukraine] (2018). https://zakon.rada.gov.ua/laws/show/357-2018-%D0%BF#Text
“Eksport IT-posluh z Ukrainy“ [Export of IT Services from Ukraine]. https://forbes.ua/news/eksport-it-poslug-z-ukraini-za-misyats-skorotivsya-na-35-nbu-31052024-21497
“YeS rozsliduie mozhlyve porushennia Apple, Google ta Meta novoho tsyfrovoho zakonu“ [The EU Is Investigating Possible Violations by Apple, Google and Meta of the New Digital Law]. https://www.eurointegration.com.ua/news/2024/03/25/7182349/
“Ekonomichni perevahy vid intehratsii v Yedynyi tsyfrovyi rynok YeS“ [Economic Benefits from Integration into the EU's Single Digital Market]. https://thedigital.gov.ua/news/ekonomichni-perevagi-vid-integratsii-v-ediniy-tsifroviy-rinok-es-nazvani-realni-tsifri
Yefremova, K. V. “Yedynyi tsyfrovyi rynok Yevropy ta Ukrainy“ [The Only Digital Market of Europe and Ukraine]. https://ndipzir.org.ua/wp-content/uploads/2018/04/Yefremova.pdf