INTERNATIONAL EXPERIENCE IN THE LEGAL FRAMEWORK FOR FINANCIAL SECURITY

Abstract

The current stage of development of the financial and economic system is characterised by intensifying globalisation processes, the integration of national economies, and the growing influence of external factors on the financial stability of states. In such circumstances, financial security takes on crucial importance as a component of national security and a prerequisite for sustainable economic development. At the same time, Ukraine faces a number of systemic problems in the area of legal safeguards for financial security, including rising public debt, ineffective budgetary policy, imbalances in the public finance system, insufficient institutional capacity and the incomplete nature of structural economic reforms. Despite the intensification of European integration processes and the partial implementation of European approaches, the domestic financial security system remains insufficiently adapted to contemporary challenges and threats. At the same time, the experience of European Union member states demonstrates the effectiveness of a comprehensive approach to ensuring financial security, based on a combination of economic, legal and institutional mechanisms. Under these circumstances, it is particularly relevant to study international experience in ensuring financial security and to identify opportunities for its adaptation in Ukraine.

Purpose. The aim of this article is to analyse the experience of European countries in ensuring state financial security, as well as to identify key areas and mechanisms for improving Ukraine’s financial security system, taking into account contemporary challenges and European integration processes.

Methods. To achieve this aim, a comprehensive approach was adopted, involving the use of both general and specialised scientific methods. In particular, the comparative legal method was used to analyse the experience of European Union countries in the field of ensuring financial security and to identify opportunities for its adaptation in Ukraine. The formal legal method was applied to examine the provisions of regulatory legal acts governing the financial sector. The systemic-structural method enabled the identification of the main elements and components of a state’s financial security. The functional method was used to determine the roles and powers of the entities responsible for ensuring financial security. To summarise the research findings and formulate conclusions and recommendations, methods of analysis, synthesis, induction, deduction and analogy were employed.

Results. This article provides a comprehensive analysis of international, and in particular European, approaches to ensuring a state’s financial security and identifies their key institutional and legal features. It has been established that effective models of financial security are based on a combination of budgetary, debt, tax, banking and monetary policies, coupled with an appropriate level of state control and cooperation with the private sector. The experience of individual European Union countries in establishing mechanisms for financial stability, risk management and ensuring economic growth is analysed. It is argued that key factors for effectiveness include a clear definition of national interests, institutional coherence, and adaptability to global challenges. Priority areas for improving Ukraine’s financial security system have been identified, in particular through the modernisation of legislation, enhancing the effectiveness of public administration, reducing the debt burden, and implementing best European practices.

Conclusion. It is proposed to improve the legal framework for Ukraine’s financial security through a comprehensive and systematic approach, which should be implemented in the following key areas: 1) the adoption of a coherent and updated concept for ensuring the state’s financial security, taking into account contemporary challenges and adapting best international practices; 2) improving the efficiency of public finance management, in particular through the improvement of budgetary policy, the reduction of budget deficits and the alleviation of the debt burden; 3) the implementation of structural financial and legal reforms in the industrial, currency and investment sectors, which will contribute to stable economic growth; 4) institutionally strengthening the financial security system by improving coordination between state bodies and introducing effective mechanisms for financial and legal control, taking into account European practices of interaction between the state, business and society; 5) deepening the European integration vector of development, which will ensure an increase in the competitiveness of the national economy and the strengthening of Ukraine’s financial security in the context of globalisation processes and in accordance with European standards.