Baltic Journal of Economic Studies 140 Vol. 11 No. 4, 2025 This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0 1 State Organization "V. Mamutov Institute of Economic and Legal Research of the National Academy of Sciences of Ukraine", Ukraine (corresponding author) E-mail: petrunenko@yahoo.com ORCID: https://orcid.org/0000-0002-1186-730X 2 State Organization "V. Mamutov Institute of Economic and Legal Research of the National Academy of Sciences of Ukraine", Ukraine E-mail: ustimenko.v.a@nas.gov.ua ORCID: https://orcid.org/0000-0002-1094-422X 3 State Organization "V. Mamutov Institute of Economic and Legal Research of the National Academy of Sciences of Ukraine", Ukraine E-mail: dzhabrailov@nas.gov.ua ORCID: https://orcid.org/0000-0002-4422-2102 DOI: https://doi.org/10.30525/2256-0742/2025-11-4-140-149 METHODOLOGICAL BASIS OF NORM-SETTING IN THE CONTEXT OF ADAPTATION TO EUROPEAN UNION LAW: ECONOMIC AND LEGAL PARADIGMS Iaroslav Petrunenko1, Volodymyr Ustymenko2, Ruslan Dzhabrailov3 Abstract. Ukraine is actively moving towards integration with the European Union, as evidenced by the signing of the Association Agreement (2014) and the granting of EU candidate status (2022). These steps have become significant milestones on the path to European integration, opening up new opportunities for Ukraine's political, economic, and legal convergence with EU member states. The adaptation of national legislation to EU law is one of the key stages on the path to European integration. This process requires not only the formal transposition of EU legal norms into national legislation, but also their practical implementation, taking into account the national characteristics of Ukraine's legal system. Accordingly, harmonisation of legislation must be accompanied by institutional reforms, improvement of law enforcement practices and enhancement of the quality of regulatory drafting. The process of legislative drafting, that is to say, the creation of legal norms, is subject to the requirement of compliance with EU standards and principles. The principles of legislative drafting are aimed at ensuring that laws are not only adopted but also effectively implemented. Adaptation to EU law is not merely a matter of formal transposition of norms; it is also contingent on their practical implementation. The purpose of this study is to summarise the conceptual foundations and methodological principles of norm-setting as a law-making process, to identify effective adaptation mechanisms for integrating Ukrainian legislation into the legal space of the European Union, taking into account the challenges and prospects identified for Ukraine within the economic and legal paradigms of the present day. Methodology. The restructuring of domestic law during the formation of the Ukrainian legal system and Ukraine's subsequent integration into the European legal field is a dynamic process that requires constant methodological reflection. This study was conducted according to the principles of dialectical logic. The multifaceted and multifactorial nature of the law-making process necessitates a systematic, structural- functional and situational approach to its study. The provisions and conclusions were developed using theories of rational choice and a comparative approach. Within the scope of the conclusions, it can be stated that the formation and functioning of the legal system is a law-making process. The dynamics of processes occurring both around and within the system can have two different development patterns: unifying and disunifying. Legal monitoring in the law-making process is designed to identify them, while ensuring the implementation of the predictive function of law. The process of drafting regulations and adapting Ukrainian national legislation to EU law is a complex and multifaceted task that requires consideration of both the fundamental principles of regulatory drafting and new challenges posed by the specific nature of the European legal space and current global trends. Adapting legislation is a complex and multidimensional process which, in addition to implementing reforms and close coordination between state bodies and EU institutions, requires interaction with expert communities and international partners. The analysis presented in the article indicates that despite achievements in harmonising legislative norms and Ukraine's attempts to reform a significant part of the legal sector, there are still problems that require a wide range of opportunities and more decisive action on the part of both Ukraine Baltic Journal of Economic Studies 141 Vol. 11 No. 4, 2025 and the EU. In general, the difficulties lie in the lack of a regulatory framework on the basis of which it is possible to effectively influence legislative changes, difficulties in legal support, corruption at all levels of government, and many other problems of an informational, economic and political nature. Such challenges are an obstacle to the further effectiveness of the integration process and have a negative impact not only on the country's reputation but also on the assistance provided by EU Member States. Successfully addressing these challenges is key to Ukraine's European integration, its development and a stable and competitive future as a powerful, free and economically developed country. Effective regulatory drafting will be a key factor in Ukraine's integration into the EU, contributing to the strengthening of the legal system and ensuring compliance with European standards in all areas of public life, in order to achieve the development and prosperity of the state. Keywords: normative drafting, lawmaking, legal methodology, EU law, European integration, legal adaptation, economic and legal paradigms, problems of socio-economic transformations, sustainable development. JEL classification: К10, К33, H77, E61, F02, O10 Introduction Ukraine is actively moving towards integration with the European Union, as evidenced by the signing of the Association Agreement (2014) and the granting of EU candidate status (2022). These steps have become significant milestones on the path to European integration, opening up new opportunities for Ukraine's political, economic, and legal rapprochement with EU member states. The adaptation of national legislation to EU law is one of the key stages on the path to European integration. This process requires not only the formal transposition of EU legal norms into national legislation, but also their practical implementation, taking into account the national characteristics of Ukraine's legal system. Accordingly, harmonisation of legislation must be accompanied by institutional reforms, improvement of law enforcement practices and enhancement of the quality of regulatory drafting. Regulatory drafting, i.e, the process of creating legal norms, must comply with EU standards and principles. The principles of law drafting are aimed at ensuring that laws are not only adopted but also effectively implemented. Adaptation to EU law involves not only the formal transposition of norms but also their practical implementation (Nikolenko, 2025). The primary method for implementing a significant portion of the tasks is regulatory drafting, which consists of developing effective legislative and subordinate acts, discussing them, and refining them. The next stage after regulatory drafting is the proper implementation of legal norms, the effectiveness of which directly depends on the quality of the regulatory drafting. Both stages are of great importance today and will be no less important after accession. Today, one of the economic and legal paradigms of development is disintegration tools in the legal system that manifest themselves in the law-making process. For example, the process of transforming one legal system may entail the collapse of the legal system of a foreign legal order; the law-making process of transforming the legal system (the internal structure of law) may be accompanied by the collapse of certain elements of the legal system or the legal system in particular (Ustymenko, Derevyanko, 2025). The purpose of this study is to summarise the conceptual foundations and methodological principles of norm-setting as a law-making process, to identify effective adaptation mechanisms for integrating Ukrainian legislation into the legal space of the European Union, taking into account the challenges and prospects identified for Ukraine within the economic and legal paradigms of the present day. 1. Research Methodology In the context of the examination of issues pertaining to law drafting and the integration of legal systems into EU norms, it is evident that this process is characterised by its complexity, multifaceted nature and multidimensional character. Consequently, the present study proposes an analysis of a number of approaches that will help to highlight the outline of the study in the legal doctrine at the interdisciplinary and intersectoral level. This approach will contribute to a more complete understanding of the legal nature of law-making and the integration of law-making processes in the context of the EU legal field. The issue of regulatory drafting in the context of moving towards standards approved by UN bodies and other international organisations, as well as by the EU governing bodies themselves and their individual member states, is naturally very rich in various areas of research, ranging from historiography to the fundamental questions of recent years (Ustymenko, 2025). This standpoint is one that is not difficult to comprehend. Numerous countries that are active members or candidate countries are engaged in geopolitical, geo-economic and geo-social relations, and the resolution of numerous issues is an extremely complex task. Consequently, this subject necessitates ongoing, multifaceted research and will perpetually retain its relevance. Baltic Journal of Economic Studies 142 Vol. 11 No. 4, 2025 Ukrainian lawyers, economists, managers and representatives of other scientific fields have also have become increasingly active in exploring ways to implement the progressive norms of international conventions, UN Guidelines, the Principles of the Organisation for Economic Co-operation and Development (OECD), EU directives and regulations, and the Ukrainian legislative field, especially after Ukraine acquired the status of a candidate country for EU membership. This issue has been researched by many domestic scholars. For example, Frantsuk and Lazebna (2020) examined the process of aligning legislation with the EU legal system. Scientists Ryndyuk V. I., Kuchynska O. Yu. (2024), Moroz O. B. (2020) focus their research on adapting national legislation to EU law. Another researcher, Fokin Ya. F. (2014), studied the problems and prospects of adapting Ukrainian legislation to EU standards during armed aggression. In their 2024 study, Demchuk and Shipilova investigated the challenges and opportunities inherent in adapting Ukrainian legislation to EU standards. In particular, Khaustova M. G. (2018), in her study, concluded that "…legal integration is a process characterised by its long duration and gradual stages of development. The scholar distinguished the following stages of development: emergence, formation, a period of maturity and stability, and transformation. In addition, attention was devoted to differentiating such concepts as ‘globalisation’, ‘legal integration’, ‘unification’, ‘systematisation’, ‘reception’, and ‘implementation’…". At a more systematic level of research, the issue of integration in law was also examined by Yakovyuk I. V. (2013), who points out that this scholarly work provides a comprehensive and thorough account of "…the history and current state of the integration process in Europe, analyses the conceptual approaches to explaining the legal nature of the European Union, considers the problems of forming the EU’s institutional mechanism, and examines the specific features of interaction between its institutions themselves as well as with national governments." From the perspective of international relations, the problems of integration were explored by Nikolenko L. M. (2025) and Gumeniuk T. I. (2025). In the context of economic and legal paradigms, Petrunenko I. V. (2025) conducted a comparative and analytical study of models of regulatory activity in EU countries, based on which he developed practical recommendations for Ukraine. The EU legal mechanism is not just a set of rules, but an entire system known as the acquis communautaire. This complex system includes the following: – Directives that set targets but leave the means of achieving them to the national governments. – regulations that have direct effect; – institutional principles of sustainable development (environmental balance, social justice, economic efficiency). Accordingly, regulatory drafting in Ukraine must take into account: – Regulatory Impact Assessment (RIA); – legal and socio-economic expertise; – alignment with the UN Sustainable Development Goals and the EU Green Deal. From an economic perspective, the issue of Ukraine's integration into the EU has been the subject of a substantial body of scientific and applied research. It is not feasible to analyse such a large amount of information within the framework of a single article. However, the research by Revenko A. D. (2019) allows for the identification of the direction that most intertextually emphasises the hypothesis formed in the research. In particular, in his conclusions, the researcher argues that today there is "...a dilemma for the survival of the European project: either a political union with a functioning institutional configuration of federal states will be created, or a multitude of necessary political competences (e.g., financial control and restrictions, monetary sovereignty, trade policy, etc.) will have to be renationalised...". It is evident that this approach is incomplete, indicating certain trends in both the integration process and the law-making process. However, despite the large number of studies on aspects of Ukraine's European integration, lawyers still have a lot of work to do to make EU accession possible. 2. Theoretical Research 2.1. Methodological Foundations of Normative Drafting as a Law-Making Process When considering the problems of adaptation and integration in the legal system as a law-making process, it is first of all advisable to pay attention to the structure and elements of the legal system, since understanding their content will determine which elements are ‘integrated’. Thus, in a textbook on comparative law, the legal system is considered in the most general terms as a set of all legal phenomena that have been formed under the influence of the laws of development of a particular society and are in stable relations with each other and with other social phenomena (Comparative jurisprudence, 2012). According to Kharytonova O. I. and Kharytonov E. O. (2002), in the narrowest sense, the term "legal system" refers to the law of a particular state and is terminologically referred to as the "national legal system". At the same time, the elements of a society's legal system traditionally include the following components: "... (a) subjects of law – natural persons, legal entities, Baltic Journal of Economic Studies 143 Vol. 11 No. 4, 2025 the state, and other social entities; (b) legal norms and principles; (c) legal relations, legal behavior, legal practice, the functioning of the legal system; legal ideology, legal consciousness, legal views, legal culture; (d) the connections between these elements that determine the result of their interaction – legality, law and order. ..." (Melnyk, 2025). However, the legal encyclopedia on general legal theory contains a slightly different, systematic approach. In particular, it notes that certain subsystems are distinguished within the legal system of society, including: (1) Individual component (subjects of law, both individual and collective, that form the legal system); (2) normative component (legal norms and principles of law that regulate relations between subjects of law; a system of recognised sources of law in society); (3) ideological component (people's understanding of law, their groups or society as a whole; their legal awareness and legal culture; legal science; and the legal tradition of a particular society. This group also includes the system of preserving scientific knowledge and training lawyers); (4) functional component (lawmaking; law enforcement; law application; legal relations; and judicial and other legal practice) (Melnyk, 2025). It is believed that it is through them that the legal system functions, and the rights and obligations of legal entities, as provided for by the principles and norms of law, are formed, changed and implemented; (5) regulatory component – reflects the result of the action of law, the degree of its social demand and compliance with the interests of society, the state of law and order in society Great Ukrainian Encyclopedia (2017). Paragraph 2 of the preamble to the Law of Ukraine ‘On Law-Making Activities’ (hereinafter referred to as the Law of August 24, 2023, No. 3354-IX) stipulates that Law No. 3354-IX of August 24, 2023 "... defines the legal and organizational basis for law-making activities, the principles and procedure for their implementation, participants in law-making activities, rules of regulatory drafting, the procedure for recording regulatory legal acts, as well as the rules for the operation of regulatory legal acts, the elimination of gaps, the resolution of conflicts in regulatory legal acts and the control over the implementation of regulatory legal acts ..." (The Law of Ukraine "On Law-Making Activities"). In essence, "activity" in the rule-making process is characterised as a legal process with a specific legal form and content suitable for working with systemic elements of law, their transformation, etc. On the other hand, some researchers note that lawmaking, as the process of creating law, goes beyond purely state legal regulation (Yuskiv, 2014). This approach raises the crucial context of the institution of lawmaking, elevating it to the hierarchical vertical of procedural instruments and procedural form. However, Yuskiv N. V. (2014) notes that the problems of statehood in Ukraine are caused by the historical realities of the transition from a command system to a legitimate democratic state with the rule of law as the dominant legal guarantee. Social anomie, as the most typical result of the destruction of old values without the timely introduction of new ones, becomes an obstacle to the spiritual and value-based rooting of a person. Thus, in modern Ukrainian society, there is a conglomerate of problems and deviations that create the basis for the transition of the value characteristics of state-building standards into anti-value intentions (Yavir, 2018). Thus, the formation of regulatory processes in the process of integration and adaptation to EU law highlights a number of economic and legal paradigms, and as a result of the weakness of certain systems and their instability, may encounter "systems of higher forms of order", undergoing a process of bifurcation (splitting) or even polyfiguration (Melnyk, 2025). Here, it is worth noting the Association Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand (hereinafter referred to as the Agreement) (Association (16.09.2014)). In particular, Part 1 of Article 10 of the Agreement stipulates that "...the Parties shall strengthen practical cooperation in conflict prevention and crisis management..." (Association (16.09.2014)). This interpretation of the provision implies that the Agreement, as a document of the EU legal system, should contribute to the elimination of disintegration through law-making processes and instruments. It should be borne in mind that the "work" of the EU legal system has to deal, so to speak, with the legal systems of other parties to the Agreement, as well as with those of applicants for membership. Melnyk Ya. Ya. (2025) notes that the advent of the postmodern era is associated with the establishment of a pluralistic paradigm, the rejection of Eurocentrism and ethnocentrism, the proclamation of the principle of the multiplicity of civilisations and legal cultures, and a heightened focus on the individual their inner world, including the legal components of that world. Therefore, according to the scholar, the law should contribute to the formation of a postmodern model of the state system, characterised by efficiency, vitality, innovation, and maximum transfer of powers to lower levels of government and self-government. Obviously, it should be noted that the pluralistic paradigm embodies the issue of bifurcation of the legal system as a consequence of the manifestation of, so to speak, "law-creating attractors" (determinants) (Melnyk, 2025). Baltic Journal of Economic Studies 144 Vol. 11 No. 4, 2025 2.2. Problems and Challenges in Developing Adaptation Mechanisms for Integrating Ukrainian Legislation into the EU Legal Framework Integration into the EU is a complex procedure and a realistic goal that Ukraine is striving to achieve by adapting its legislation to the EU legal system. Researchers Frantsuk A. Y. and Lazebna K. Yu. (2020) note that EU legislation is undergoing constant dynamic changes. However, Ukraine lacks a mechanism for the rapid implementation of the latest versions of EU legal acts, as well as a mechanism for engaging in discussions on topical issues in certain areas. Under these conditions, Ukraine is forced to constantly catch up with changes in the EU legal system, which is complicated by the effective implementation of European standards. Taking into account the experience of EU Member States, European Commission reports, analysis of implementation difficulties, new circumstances and decisions of the Court of Justice of the European Union, EU legislation is constantly being improved. As part of this process, updated regulations are being introduced, directives are being revised, some of them are being consolidated into framework acts, and outdated provisions are gradually being repealed (Gumeniuk, 2025). Domestic researchers Ryndyuk V. I., Kuchynska O. Yu. (2024) note that the legal and institutional mechanisms for adapting Ukrainian legislation to EU law need to be systematised and clearly enshrined in law. It is important to take into account both the successful experience and the difficulties faced by EU Member States on their path to European integration. The adaptation of Ukrainian legislation to EU law is an independent area of law-making, which must be properly regulated at the legislative level. This principle requires clarification of the powers of all actors involved in the law-making process, clear coordination of their rights and obligations in the implementation of EU norms, and improvement of the adaptation mechanism. In addition, it is also necessary to develop uniform, detailed methodological recommendations that would facilitate the adaptation of Ukrainian legislation in line with EU standards, promoting the unification of legal approaches and improving the effectiveness of the implementation of European standards in the national legal system (Gumeniuk, 2025). The main aspect of Ukraine's high-quality European integration is to achieve a certain level of compliance of national legislation with European law. The process of bringing Ukraine's legislative framework closer to the modern European legal system will contribute to the implementation of tasks for the development of political, entrepreneurial, social and cultural activity among citizens, stimulate the country's economic growth in the context of integration into the European Union, and guide the country towards achieving the level of prosperity that exists in EU Member States. In addition, this process will create the conditions for Ukraine to acquire the status of an associate member of the EU, which is the country's main foreign policy priority in the near future (Moroz, 2020). A considerable amount of time passed between Ukraine's declaration of independence in 1991 and the adoption of the National Programme for the Adaptation of Legislation to EU Legislation in 2004. During this period, with the support of the European Union, the Ukrainian authorities developed an adaptation mechanism, which became the basis for the adoption of the Strategy for Ukraine's Integration into the EU in 1998. The strategy set out priority areas for the executive branch until 2007 with the aim of creating favourable conditions for Ukraine's accession to the EU, with the main focus on adapting national legislation to the norms of the European legal system. Looking ahead, it should be noted that this strategy has expired and is no longer relevant. The Strategy aimed to bring Ukrainian legislation closer to EU standards, promoting political, economic and social development, as well as improving the welfare of the population (Fokin, 2014). One of the first regulatory acts in the field of adaptation of domestic legislation to EU legislation was the Law of Ukraine ‘On the State Programme for Adaptation of Ukrainian Legislation to the Legislation of the European Union’, adopted on March 18, 2004 (The Law of Ukraine "On the State Programme for Adaptation of Ukrainian Legislation to the Legislation of the European Union"). The provisions of the Law formed the basis for the process of harmonising domestic legislation with EU legislation. Its aim is to achieve compatibility between the Ukrainian legal system and European legal standards, taking into account the requirements applicable to EU candidate countries. The harmonisation of national legislation with EU norms has been a key factor in Ukraine's integration into the European Union, remaining one of the priorities of the country's foreign policy. In accordance with Resolution of the Cabinet of Ministers of Ukraine "On Implementation of the Association Agreement between Ukraine, On the One Hand, and the European Union, the European Atomic Energy Community and their Member States, On the Other Hand" No. 1106 of October 25, 2017, the government approved a plan of measures aimed at implementing this Agreement (The Resolution of the Cabinet of Ministers of Ukraine "On Implementation of the Association Agreement between Ukraine, On the One Hand, and the European Union, the European Atomic Energy Community and their Member States, On the Other Hand"). Baltic Journal of Economic Studies 145 Vol. 11 No. 4, 2025 The document ensures Ukraine's continuous fulfilment of its obligations throughout the entire term of the Agreement, guarantees the availability of information on its implementation, and establishes clear mechanisms for responding and taking the necessary measures to comply with its provisions. The agreement has an indefinite term, allowing its provisions to be reviewed, amended or terminated if necessary. The EU sees this document as a historic opportunity for Ukraine on its path to democracy and the implementation of European values. Adapting national legislation to EU law requires high qualifications in lawmaking, knowledge of EU law, English language skills and an understanding of domestic legislation. The Law of Ukraine "On Law- Making Activities" of August 24, 2023 (The Law of Ukraine "On Law-Making Activities"), sets two basic requirements for regulatory acts concerning the adaptation of legislation to EU standards: 1. The preamble to such acts must contain a reference to the relevant EU legal acts (Article 38(1)). 2. The draft regulatory act must contain information on compliance with the itemised table of compliance (Article 43(4)). At the 9th meeting of the Ukraine-EU Association Council, held on March 20, 2024, in Brussels, a report was presented on Ukraine's implementation of its obligations under the 2023 Association Agreement. The report emphasises that the country continues to actively implement measures aimed at joining the EU, and that the implementation of the Agreement is the main tool for achieving economic and legal compatibility with European standards. The report was prepared by the Government Office for Coordination of European and Euro-Atlantic Integration under the Secretariat of the Cabinet of Ministers of Ukraine. According to the results of 2023, the level of fulfilment of commitments increased to 88%, which is 5% more than in the previous year. The highest scores were achieved in intellectual property, statistics and information exchange, humanitarian policy, justice, security, human rights, education and youth, political dialogue, and national security and defence, where the implementation rate exceeded 90% (Report on the Implementation (20.03.2024)). One of the serious challenges in adapting domestic legislation to EU legislation is the fight against corruption. A group of researchers (Gumeniuk, 2025; Ryndyuk, Kuchynska, 2024; Demchuk, Shipilova, 2024) notes that rejecting corruption and introducing transparency in all areas of public administration are critical factors that contribute to the effective implementation of European standards. A systematic approach to combating corruption will create stable conditions for harmonising legislation and increasing trust in the legal system, which, in turn, will strengthen democratic institutions and influence Ukraine's economic development. In general, the adaptation of legislation is a catalyst for internal reforms, as it contributes to the improvement of human rights, gender equality and the protection of minorities. This process opens up new opportunities for transforming Ukraine into a modern, competitive and progressive state (Gumeniuk, 2025). 3. Research Results The regulatory drafting methodology in Ukraine necessitates a systematic review, with consideration given to European standards and economic and legal efficiency. In order to achieve this objective, it is imperative to establish impact assessment mechanisms, to set up competent analytical centres, to integrate the principles of sustainable development at all stages of legislative drafting, and to ensure an interdisciplinary approach encompassing the legal, economic, social and environmental dimensions. Ukraine is already applying certain elements of European models of statehood and self-government: – Development and implementation of strategies for adaptation to EU legislation. – Introduction of RIA standards into state regulatory policy. – Formulation and ratification of National Sustainable Development Strategies. However, the extremely complex problems currently facing Ukraine are significantly hindering its path to European development. These significant obstacles include: fragmented legal norms; a lack of expert capacity and human resources in state bodies; hypercorruption, political instability and the destructive actions of Russia's full-scale military invasion of Ukraine. It is important to emphasise that adaptation mechanisms are currently based on a number of components, including (Gumeniuk, 2025): – Harmonisation of domestic laws and regulations with EU laws and regulations. This process is based on the adoption of new laws, amendments to existing laws, and the implementation of EU directives and regulations. – Institutional coordination and monitoring. As part of this process, specialised bodies are formed to monitor, coordinate and evaluate the implementation of regulatory changes, as well as to ensure a timely response to certain changes taking place in society and related to the adaptation of legislation. – Provision of technical and financial support from the EU. The essence of this process is to use financial grants and other international assistance provided by the European Union to promote reforms and improve the effectiveness of the implementation of European standards: Baltic Journal of Economic Studies 146 Vol. 11 No. 4, 2025 – Co-operation with international partners and exchange of experience. This mechanism involves organisational work that ensures the exchange of best practices between the country and the EU, including in the context of legislative adaptation and other law- making issues; – establishment and development of legal support is a mechanism that includes the development of specialised courses, training sessions and seminars that will enable lawyers and lawmakers to work effectively with European regulations and standards, successfully implementing them into the domestic legal space. Changes in educational programmes will promote the exchange of experience between educational institutions and practitioners, which is necessary for the rapid implementation of European standards into domestic legislation. Overall, the established approach will ensure the formation of highly qualified personnel capable of adapting national legislation to EU requirements, as well as contribute to the implementation of reforms in the legal sphere. As a result, legal support will become an important tool for harmonising Ukrainian legislation with European standards in the near future, facilitating the country's Table 1 Basic models of socio-economic development of the state Model concept Authors and their publications Structure and essence of the development model Sustainable Development Theory World Commission on Environment and Development. (1987). Our Common Future. Oxford University Press. Daly, H. E. (1996). Beyond Growth: The Economics of Sustainable Development. Beacon Press It aims to achieve a balance between economic, social and environmental aspects. The key component of this model is the "sustainability triangle" (economy, society, environment), where synergistic interaction between the economy, society and the environment forms the basis for sustainable development both for the country as a whole and for local areas and hromadas. Regional Growth Theory Isard, W. (1956). Location and Space- Economy: A General Theory Relating to Industrial Location, Market Areas, Land Use, Trade, and Urban Structure. MIT Press. Friedmann, J. (1966). Regional Development Policy: A Case Study of Venezuela. MIT Press It focuses on the spatial distribution of economic activity and uneven development of territories due to the impact of existing social infrastructure on socio-economic development. It provides for equal consideration, alongside traditional factors such as physical and human capital, labour, land, and natural resources, of the influence of social, institutional, and political factors, as well as geographical location. Human Capital Theory Becker, G. S. (1964). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. University of Chicago Press. It focuses on developing the knowledge, skills and health of the population as key factors for economic growth and drivers of productivity improvement. Consequently, the concentration of skilled professionals in certain regions stimulates innovation. According to this model, national programmes are envisaged to stimulate the development of education and healthcare, while local hromadas ensure the creation of conditions for the realisation of the population's potential (e.g., the opening of vocational training centres). Cumulative Growth Model (Economies of Scale Model) Myrdal, G. (1957). Economic Theory and Under-Developed Regions. Gerald Duckworth & Co. Kaldor, N. (1970). The case for regional policies. Scottish Journal of Political Economy, 17(3), 337-348. It focuses on the fact that economic growth is uneven and that the levels of economic development of different territories are not converging. Therefore, specialisation and scaling of production are encouraged, as they can increase the initial minor advantages of a particular territory. As a result, the advantages of specialised hromadas lead to their accelerated development. Growth Pole Model (Central Place Model) Perroux, F. (1955). Note sur la notion de pôle de croissance. Économie Appliquée, 8, 307. Christaller, W. (1933). Die zentralen Orte in Süddeutschland. Jena: Gustav Fischer. Economic development is concentrated around "poles" (cities, innovation centres) that stimulate the development of the periphery. Since the location of settlements affects their economic activity and interaction, it is used at the national level to identify strategic growth regions and at the local level to plan hromada development through integration into regional economies. Innovative Development Model Schumpeter, J. A. (1934). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Harvard University Press. Freeman, C., & Soete, L. (1997). The Economics of Industrial Innovation (3rd ed.). MIT Press. The model emphasises the introduction of advanced innovative technologies to ensure sustainable economic growth. At the national level, this model includes investment in research and development programmes. Local hromadas adapt the results of research to solve their specific problems (e.g., the use of renewable energy). Economic Cluster Model Porter, M. E. (1990). The Competitive Advantage of Nations. Free Press.Marshall, A. (1890). Principles of Economics. Macmillan. The model involves the creation of regional clusters that bring together businesses, research institutions and government agencies to stimulate innovation and economic growth. At the national level, this model is implemented through government cluster support programmes, while at the local level, hromadas create conditions to attract small businesses and startups to clusters. Baltic Journal of Economic Studies 147 Vol. 11 No. 4, 2025 integration into the EU legal space. Clear and effective action in the direction chosen by Ukraine will ensure the adaptation of national legislation, strengthen the confidence of international partners and promote investment, which is an important factor in the country's economic growth. In contemporary scientific discourse, there are many theories, models and approaches to shaping socio-economic development directions within the framework of the sustainable development strategy developed at various levels of territorial organisation of state power, which have been described and analysed in numerous publications by representatives of economic science, public management and administration, legal, social and political sciences. In order to avoid the repetition of well-known facts, the present text will offer a concise overview of the primary concepts and theories of socio-economic development at the state, regional, and hromada (territorial communities) levels (Deliatynchuk, 2024). The above theories and models of socio-economic development provide a scientifically sound basis for the formulation of development strategies at both national and local levels. Their interconnection with many elements of the state system, which take into account both the strategic interests of the state and the needs of local hromadas, is important for achieving the goals of sustainable and balanced development. The effective implementation of such models requires a comprehensive approach and close co-operation between levels of government, adaptability to local conditions, and support for innovation in the formation and implementation of effective national, regional, and local socio-economic development policies. Conclusions The following conclusions can be drawn on the basis of the research that has been conducted. Within the scope of the conclusions, it can be stated that the formation and functioning of the legal system is a law-making process. The dynamics of the processes taking place both around and within the system can have two different development patterns: unifying and disunifying. This is explained by the fact that a legal system, which reflects a certain subordination of some elements to others, can be characterised by tendencies both towards unification (essentially the creation of a new system) and towards disintegration (the collapse of the system). This is facilitated by stabilising and destabilising factors (elements). Legal monitoring in the law-making process is designed to identify them, while ensuring the fulfilment of the predictive function of law. The process of drafting regulations and adapting Ukrainian national legislation to EU law is a complex and multifaceted task that requires consideration of both the fundamental principles of regulatory drafting and new challenges posed by the specific nature of the European legal space and current global trends. Adapting legislation is a complex and multidimensional process, which, in addition to implementing reforms and close coordination between state bodies and EU institutions, requires interaction with expert communities and international partners. The analysis in this article indicates that despite achievements in harmonising legislative norms and Ukraine's attempts to reform a significant part of the legal sector, there are problems that require a wide range of opportunities and more decisive action on the part of both Ukraine and the EU. In general, the difficulties lie in the lack of a regulatory framework on the basis of which it is possible to effectively influence legislative changes, difficulties in legal support, corruption at all levels of government, and many other problems of an informational, economic and political nature. Such challenges are an obstacle to the further effectiveness of the integration process and have a negative impact not only on the country's reputation but also on the assistance provided by EU Member States. Successfully addressing these challenges is key to Ukraine's European integration, its development and a stable and competitive future as a powerful, free and economically developed country. The scientific and theoretical significance of the policy of shaping the socio-economic development of Ukraine lies in the creation of a comprehensive system of measures aimed at ensuring sustainable economic growth, improving the quality of life of the population and preserving natural resources. This policy should be based on the integration of a set of models and the use of economic instruments from various models, such as the innovation development model, the economic cluster model, the cumulative growth model, the regional growth model, and the general concept of sustainable development. 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