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At the present stage of economic development, Ukrainian public sector is faced with multiple new and complex challenges. In order to implement strategic reforms in the public financial management, the public authorities were given the opportunity to use external sources of finance for the implementation of relevant innovative projects and programs. Accordingly, Ukraine assumes certain international obligations towards the organizational and institutional aspects, as well as transparent and effective targeted use of financial resources. This study examined the main issues of projects and programs at each stage of the project cycle management. The main purpose of this paper is to find possibly the best basic areas for further cooperation between Ukraine and the EU on the implementation of project management in the context of the need to modernize the budget management system. Methodological and theoretical basis of the research consists of the works of foreign and national scholars that allowed realizing conceptual integrity of the study. Methods of generalization and comparison allowed to adduce the existing projects of modernization of public financial management financed by international organizations. The authors have defined the possible forms of financing of government innovative projects and programs in Ukraine. For this purpose, methods of analysis and synthesis were used. As a result, it is recommended to follow the directions of further cooperation between Ukraine and the EU on the development of project management along with performance-based budgeting. Liubov Lysiak (Ukraine), Svitlana Kachula (Ukraine), Veronika Kulichenko (Ukraine) BUSINESS PERSPECTIVES LLC “СPС “Business Perspectives” Hryhorii Skovoroda lane, 10, Sumy, 40022, Ukraine www.businessperspectives.org UKRAINE-EU COOPERATION

Ukraine-EU cooperation for realization of innovative projects and programs aimed at public financial management modernization