Confrontation between the head of government and the head of state, triggered by the latter, has shifted to the budgetary sphere. In his unscheduled televised address to the nation Viktor Yushchenko lashed out at Yulia Tymoshenko in an unusually sharp manner. He said that the gas contracts signed by Tymoshenko do not reflect the Ukrainian national interests, and that the 2009 budget program is a castle in the air. In a word, the president believes that every problem currently faced by Ukraine is the prime minister’s doing. Simply put, the head of state — who is an inalienable component of the government machine — has laid all blame on the cabinet and its head. Is he right? Hardly likely, first of all because the 2009 budget law was signed by the president; second, because the president, not the prime minister, nominates the head of the National Bank of Ukraine, and so on. Of course, Tymoshenko is not totally without a fault. It is possible the January part of the budget program has been overfulfilled, but if so, most Ukrainians have not experienced the consequences. In Kyiv, for example, some categories of employees on budget payroll have not been paid for December, let alone January. Pension payments are delayed (past the 20th day of the month), which means that the utilities bills are not paid on time. Talking of utilities, the creative mayor of Kyiv recently announced that the rent will be up five times. Why?
On top of all this, a number of big-time banks have blocked individual and corporate deposit accounts, and are having a hard time performing elementary transactions, such as payments of pensions and wages. Conclusion? The prime minister appears to be living in her own world of optimistic facts and figures that does not reflect the realities in the Ukrainian state.
If one considers the latest president vs. prime minister bout at the political angle, it becomes apparent that the confrontation between Ukraine’s political leaders has turned into a fight to the last man. The situation is understandable in terms of career. The president is hinting at being prepared to support the Party of Regions’ initiative of no-confidence vote on the cabinet, although simple arithmetic shows that there will never be enough factions’ yeas for the cabinet’s retirement. Even if you add some 20 votes from propresidential NU-NS MPs to Yanukovych’s 175 ones, you won’t get the desired 226. In this sense the impeachment scenario, which is being discussed even by the Verkhovna Rada’s cleaning women, looks a more likely possibility.
All it takes is for Tymoshenko and Yanukovych to get back to the arrangements made in September 2008, whereby Tymoshenko remains prime minister and Yanukovych is elected president in parliament. There is no place for Yushchenko on this tandem. There is, however, a problem with this scenario as the leader of the Party of Regions has been criticizing exclusively the prime minister. This is proof of the thesis that a war of one against all now has a different formula: a war of all against one. Yet there is no guarantee that today’s blue-white offensive on the government positions will not turn into an offensive on Bankova St. tomorrow. Everything depends on what Tymoshenko and Yushchenko can offer Yanukovych to convince him to take sides.
Prime Minister Tymoshenko believes that the current administration needs political consolidation, a sensible view of things, strong nerve, willpower, determination, and a profound sense of responsibility. A good recipe, you will agree, yet such consolidation is an unlikely option now that the presidential race has begun because, regrettably, confrontation is the invariable trump card in every Ukrainian election game. Will the key players of the coming game find it in themselves to change the rules in time of crisis? According to Speaker Lytvyn, the president and the prime minister currently communicate by appearances on television. Therefore, the least they could do would be establishing regular direct contact on the highest political level, which is a matter of course in any European country. The cabinet will not be retired this week. “They won’t have enough votes,” says the political analyst Volodymyr Fesenko with conviction. Let us hope that people representing various political parties will have enough determination and wisdom to realize that the worse-the-better formula works not against their opponents but against the whole country. Playing with notions like default, economic — and consequently social — collapse, fighting in parliament, means playing with fire. The ongoing crisis may well destroy everyone, Yushchenko, Tymoshenko, and Yanukovych included.
SHARP STATEMENT, SHARP RESPONSE
President Viktor YUSHCHENKO:
I appeal to you, esteemed fellow Ukrainians, so as to enhance the requirements to the Ukrainian government and the parliamentary majority, to stop the flow of falsehood, slander, and to immediately — I stress immediately — start acting to save the national economy. This state has a totally unbalanced financial system. State institutions are being consciously destroyed by lack of funds.
I am not talking about personal accusations. I cast this dirt aside. A real sabbat took place in parliament in regard to the National Bank of Ukraine. Undoubtedly its sole purpose was to get access to the money printing presses to cover the shortages of the state budget. This may result in an unheard-of inflation rate. All this may end in a social catastrophe.
I must say these words to bring the politicians to their senses. Every minute counts now. I demand immediate changes to the state budget for 2009. This is the only way to correct the situation.
I have warned the government and the majority in parliament as the main authors of the this year’s state budget that their document is a castle in the air.
To date the government has not collected even one half of taxes and duties planned for January. The reason is the same: the unrealistic nature of this budget.
My conclusions are based on the findings of Finance Minister Viktor Pynzenyk. This minister’s opinion is decisive in preparing budget estimates in any country. No one hears him today, primarily no one in government.
Let me stress that, under the Constitution, Prime Minister Yulia Tymoshenko bears personal responsibility for the economic situation, for the wrecking of the budgetary process and destruction of the banking system. After reaching the critical limit she will not be able to hide in opposition.
Time to stop telling lies.
Prime Minister Yulia TYMOSHENKO:
Yushchenko’s so-called address to the nation is a mixture of falsehood, panic, and hysteria. Everyone could see that their president is not the leader they need at a time when Ukraine is being tested for strength under blows from a formidable world economic crisis. I have a bad news for the president but a good one for this country: despite the crisis, the state budget for January has been overfulfilled. Wages due budget-sustained employees and pensions have been paid and will continued being paid on time and in full. Gas prices for the population and municipal distribution companies will not be increased and will remain on last year’s level.
Naftohaz is regularly supplying gas to the Ukrainian consumers and to Europe; for the first time in many years this company is operating effectively, without a single intermediary and without corruption schemes.
The government and the majority in parliament are working in a tensioned mode. On their behalf I ask the president: Please, if you cannot help us, do not interfere with our work.
The world and Ukraine are gripped by crisis. I do not intend to brighten up the situation, but nor will I allow anyone to spread panic among us. To combat this crisis, we need political consolidation, a sensible view of things, strong nerve, willpower, determination, and a profound sense of responsibility, precisely what Viktor Yushchenko has lacked and will continue to lack.
