THE IMPACT OF EUROPEAN INTEGRATION ON THE REPRODUCTION ECONOMIC POTENTIAL OF DOMESTIC ENTERPRISES: CURRENT CHALLENGES AND OPPORTUNITIES

Abstract

The article is concerned with the impact of the European integration process on the reproduction of the economic potential of domestic enterprises. It is substantiated that when analyzing exogenous factors of influence on the reproduction of economic potential, it is necessary to consider the chosen vector of socio-economic development, principles and mechanisms of its implementation, which are European integration factors for the national economy. The European integration process as a whole was characterized through the passage of three main stages (1994 – 2014, 2014 – 2021, 2022 and up to now). Particular attention was paid to the current stage of European integration as strategically important both in the context of a full-scale invasion and post-war reconstruction, the opportunities it creates and the challenges it faces. It is revealed that each stage caused a shift in the processes of socio-economic development of the country, its subsystems and agents. Among the main ones from the perspective of reproduction processes at the macro level are active socio-economic reforms (in particular, in the economic sphere – deregulation, taxation, protection of property rights, foreign economic activity, labor relations, etc.), adaptation of national institutions and institutions to EU requirements, improvement of the model of state regulation of entrepreneurship and infrastructure of economic activity, simplification of administration procedures and formation of a dialogue between the government and business, expansion of the study presents, for example, the dynamics of Ukraine's foreign trade with the EU and foreign direct investment from the EU to Ukraine. It is concluded that the European integration process has actually shown the consolidation of the choice of the path of civilizational development, political and socio-economic certainty, development according to the best principles of a socially oriented market economy and civil society. At the level of enterprises, the European integration process has expanded sources of access to financial, technical and technological resources, new markets and a new segment of consumers, partnerships in the foreign market, studying experience and adapting it to their business models, improving mechanisms for protecting property rights, etc. It is noted that in the context of a full-scale invasion, within the framework of which the «candidate for accession» stage is taking place, domestic enterprises have received additional financial and non-financial opportunities from the EU to restore the capacities lost in whole or in part and to intensify their activities, including through the use of export opportunities in the EU markets, consulting support, training, coaching, etc. Emphasis is placed on the availability of grant programs, in particular for SMEs. These programs are multi-sectoral, which indicates a well-thought-out systemic support from EU donors. It is noted that European integration today, along with positive processes and consequences, also creates conditions for possible complications, delays, barriers, and requirements for compliance with the «new rules of the game in the market». Accordingly, on this basis, it is determined that European integration as a complex non-linear process today requires the readiness of economic entities and the national economic regulation system to adapt to the new market «rules of the game» and systematic implementation of all requirements in terms of the institutional framework for European integration.