UKRAINE: Commission President Calls Zelenskyy Amid Anti-Corruption Agency Row
A European Commission spox has confirmed that Commission President Ursula von der Leyen has called Ukrainian President Volodymyr Zelenskyy regarding the controversial changes to the country's anti-corruption agencies that have sparked protests in Ukraine and led to criticism from Kyiv's European allies (see 'UKRAINE: Zelensky's Move To Neutralise Anti-Graft Agencies Triggers Backlash', 09:05BST).
- Spox: "President von der Leyen conveyed her strong concerns about the consequences of the amendments, and she requested the Ukrainian government [deliver] explanations...The respect for the rule of law and the fight against corruption are core elements of the European Union. As a candidate country, Ukraine is expected to uphold these standards fully. There cannot be a compromise."
- France's European Affairs Minister Delegate Benjamin Haddad said earlier, “It is not too late to go back on this...We will be extremely vigilant on the subject.”
- German Foreign Minister Johann Wadephul said that Berlin expects "Ukraine to continue with determination its efforts in combating corruption," and confirmed he had spoken with his Ukrainian counterpart Andrii Sybiha on the issue.
- While Brussels and Ukraine's closest partners in the EU have advocated for the acceleration of Kyiv's accession process, lingering concerns about widespread corruption remain a major obstacle to Ukraine joining the EU.
- Transparency International's Corruption Perceptions Index 2024 gave Ukraine a score of 35 out of 100 (100 being the best, zero the worst). This puts the country 105th out of 180 countries included, alongside another non-EU European state, Serbia. No EU member states score lower, with Hungary the worst-ranked in 82nd place with a score of 41.
Chart 1. Ukraine's Corruption Perceptions Index Score (out of 100)
Source: Transparency International
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- The S&P Global flash PMIs for manufacturing and services in June are released today at 0945ET, after some recent upward momentum.
- Recall that last month’s final May reading for services saw a surprisingly strong upward revision from 52.3 in the flash to 53.7, extending its bounce from 50.8 in April back towards the strong 54.4 in March.
- Manufacturing on the other hand was revised slightly lower to 52.0 (flash 52.3) but still marked an increase from two months at 50.2 for back to its highest since February.
- Alternative indicators ahead of today’s June flash releases are, as usual, limited. The two regional Fed manufacturing indicators have both missed: Empire at -16.0 (vs cons -6.0 after -9.2) and Philly at -4.0 (vs cons -1.5 after -4.0). There’s less go off for services, with the NY Fed index ticking up from -16.2 to -13.2.
- Price components will continue to be watched. May’s services press release noted that input cost inflation accelerated steeply to its highest since June 2023 on “tariffs and suppliers generally raising their prices” whilst these increased costs “were passed on to clients via the steepest increase in output charges since August 2022.”
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- There has however been some renewed divergence on the activity side, highlighted by overall ISM Services falling 1.7pts to 49.9 in May for its lowest since Jun 2024 vs that 53.7 in the Services PMI.
- For what it’s worth from a cross-market angle, the Eurozone composite PMI disappointed slightly as it held steady at 50.2 in the June preliminary report (cons 50.4) earlier today.
