Rada passes bill on social benefits on second reading

Yesterday deputies in the Verkhovna Rada passed the law raising social standards in the second reading. The bill was approved by 254 MPs, having found support with the Party of Regions, Our Ukraine, Communist Party and the Lytvyn Bloc. The approved laws increase the living wage from UAH 626 per month to UAH 701 and minimum wage from UAH 669 to UAH 744 as of November 1 and provide for hikes every quarter beginning January 1, 2010.  The bill was opposed by the Tymoshenko government, which maintains that it is impractical to raise social benefits during the crisis. The law requests the Cabinet of Ministers and Rada budget committee to adjust the state budgets for 2009 and 2010, accordingly. Brad Wells: The passage of this bill is widely seen as a populist move to curry favor with voters ahead of the January 2010 presidential elections. President Viktor Yushchenko’s move will be the next to watch – he can choose to sign the bill into law and hand Tymoshenko a defeat, or veto the bill, in which case it would be difficult for parliament to muster the required two-thirds majority on this issue for an override.