July 24, 2014
from GlobalResearch Website
Ukraine's Prime Minister Arseniy Yatsenyuk
announced his resignation in the Rada (Parliament)
and that of the entire Cabinet on Thursday, July 24.
This decision was taken following the
withdrawal of two parties from the coalition government
and the non-adoption of two important pieces of legislation,
which had been demanded by
the International Monetary Fund (IMF)
The resignation of the Prime Minister signifies the collapse of the government and the resignation of the entire cabinet.
On July 24th, the Rada failed to support the government's bill pertaining to the 2014 budget sequestration, which had been demanded by the IMF on behalf of Kiev's external creditors.
The disbursement by the IMF of the "Second Tranche" of a 17 billion dollar policy based loan was conditional upon the prior adoption of this legislation.
The entire country is in an impasse.
No money will be forthcoming from the IMF until this legislation is adopted. In the meantime, Ukraine remains on the blacklist of its external creditors. Moreover, a controversial draft law on reforming the country's gas transportation system was rejected (Itar-Tass, July 24, 2014). Both bills were tied into the government's negotiations with both the EU and the IMF.
What Happens Next?
The national economy is in crisis, the political structures of the country are in total disarray, all of which is occurring in the immediate wake of the Malaysian Airlines MH17 crash in Eastern Ukraine.
The two parties which left the coalition are The Neo-Nazi Svoboda party and the Centre Right Ukraine Democratic Alliance for Reform (UDAR) Party led by former champion boxer Vitali Klitschko.
President Petro Poroshenko (above) has intimated that the resignation of the cabinet has paved the way for a process of meaningful political restructuring:
What is implied by Poroshenko's statement is that the parliamentary process is slated to become defunct inasmuch as Rada is obligated to adopt the legislation demanded by the IMF and the European Union.
And if the Rada does not adopt the legislation, the composition of the Parliament will be changed through a process of outright political manipulation.
The 2014 budget project demanded by the IMF includes massive cuts in social spending coupled with increased allocations to the Armed Forces. Its adoption will contribute (virtually overnight) to a further process of the impoverishment of the Ukraine population.
The speaker of the Rada, Mr. Oleksandr Turchynov confirmed that the Ukraine Democratic Alliance for Reform (UDAR) and Svoboda (Freedom) would be invited to propose a candidate to occupy the post of interim Prime Minister.
So much for democracy: the leader of a Neo-Nazi formation Oleh Tyahnybok (below) will play a key role in the appointment of an interim Prime Minister to replace Mr. Yatsenyuk.
Parliamentary elections will only occur if the Rada fails to forge a new coalition government within the next 30 days:
Yuriy Yatsenyuk intimated in his resignation speech that the State was bankrupt and that failure to abide by IMF demands would create social chaos:
The IMF Program and the Interim Government
In the days following the Ukraine coup d'Etat of February 23, which led to the ousting of the duly elected president, Wall Street and the IMF - in liaison with the US Treasury and the European Commission in Brussels - had already set the stage for the imposition of the IMF's "strong economic medicine".
Following the installation of the interim coalition government, Prime Minister Arseny Yatsenyuk dismissed the need to even negotiate with the IMF.
He called for an an unconditional acceptance of IMF shock therapy:
Yatsenyuk intimated that Ukraine will,
In surrendering to the IMF at the outset of the interim government in March 2014, Yatsenyuk was fully aware that the proposed IMF-World Bank macro-economic reforms would brutally impoverish millions of people, including those who protested in Maidan against the Yanukovitch government.
The adoption of the more ruthless components of the IMF's economic package requiring supportive legislation had been delayed until after the May 25 elections.
Cracking Down on the Party of Regions and the Communist Party
Meanwhile, the government is cracking down on the Ukraine Communist Party which is now illegal as well as on the Party of Regions, both of which were firmly opposed to the IMF policy reforms.
Ukraine as An Ally without NATO Status
In turn, the Ministry of Defense has raised the issue of direct US military support in the military campaign in Eastern Ukraine, where the Donbass militia have repealed the forces of the Kiev regime.
Commander David Baldwin was in Kiev for high level consultations with the Ministry of Defense.
In the course of his meetings with Deputy Defense Minister Ihor Kabanenko, Baldwin announced on behalf of the US government that:
The granting of the "status of ally outside NATO" would set the stage for the possible deployment of US and NATO forces inside Ukraine in the context of joint military operations with the Ukraine Armed Forces and National Guard.