Integration Maturity of Georgia,Moldova,and Ukraine: Has DCFTA Helped Prepare Them for the EU Accession Process?

Abstract

The aim of this article is to research the economic preparedness for EU integration—or “integration maturity”—of Georgia, Moldova, and Ukraine, the three countries that have signed Association Agreements with the European Union. A major part of these is the Deep and Comprehensive Free Trade Agreements, which offer significant access to the EU single market and provide a pathway to deeper economic integration. The article analyzes the three countries’ economic integration maturity through five key components: macroeconomic stability, functioning market economy, competitiveness, access to foreign finance, and, lastly, convergence with the EU. The analysis shows that although all three countries have made significant progress since signing the agreements, they have still not progressed to the point where they will be competitive and capable of maximizing the economic benefits from deeper integration. However, the current framework provides a beneficial platform from which to conduct further reform, and is therefore a good interim solution for the short to medium term. This finding is particularly relevant in the context of Russia’s war on Ukraine, the significant rebuilding efforts that await at the end of the war, and the expressed desire of all three countries for full EU membership.