CONSTITUTIONAL FOUNDATIONS OF THE ECONOMIC SYSTEM: TRANSFORMATION OF LEGAL REGULATION

Abstract

The article under scrutiny is an in-depth analysis of the constitutional underpinnings of the nation's economic structure, with a particular focus on the interplay between constitutional democracy and the market economy. The subject of the present study is the constituent function of the constitution in relation to the economic system, the mechanisms of constitutional regulation of economic relations, the mutual influence of economic doctrines and constitutional norms, as well as the processes of transformation of the constitution without formal changes to its text. This text focuses on the constitutional and legal mechanisms for ensuring the stability of the economic system under martial law. It also explores the prospects for constitutional reform in the context of post-war reconstruction in Ukraine. The work is founded upon a doctrinal analysis, synthesising a theoretical and legal approach with the study of constitutional practice. The method of system analysis is utilised to unveil the dialectical relationship between constitutional and democratic mechanisms and economic indicators (GDP, inflation, unemployment, economic growth rates). The historical and legal method was applied to study the evolution of the constitutional regulation of economic relations, from the liberal "night-watchman state" model to the concept of the state actively participating in economic processes. The comparative legal method facilitated the analysis of the experience of other countries in constitutionally regulating the economy within different legal systems. The influence of dominant economic doctrines (ranging from conservative to neoliberal) on the content of constitutional regulation, as well as the practice of applying mobilisation economic strategies in emergency conditions, was studied separately. The purpose of the article is threefold: firstly, to clarify the nature and mechanisms of constitutional regulation of economic relations; secondly, to identify the patterns of transformation of constitutional norms in the sphere of economics; and thirdly, to determine strategic directions for improving the constitutional and legal foundations of the economic system of Ukraine in the context of military challenges and future post-war recovery. The objective of the present study is to develop a conceptual framework for creating an effective legal mechanism for the economic revival of the state. This will be achieved by finding the optimal balance between state regulation of the economy and constitutional guarantees of economic freedoms. The study concluded that the transformation of the constitution is a complex, multidimensional process that is implemented in two main ways: firstly, through official changes to the normative text of the Basic Law and secondly, through informal "transformation" of the constitution. The latter can be defined as evolutionary changes in the interpretation and practical application of constitutional norms without textual modifications. It has been demonstrated that the constitutional provision of the stability of the economic system is a vitally critical factor for preserving the constitutional order and national security, especially in extreme conditions of armed aggression and post-war reconstruction. The objective factors that have led to the transformation of constitutions in post-socialist countries have been identified. These factors include the systemic reconstruction of social relations, the establishment of an effective mechanism of public power, the search for a balance between the interests of the individual, society and the state, and the reforming of the economic system. The central task of transforming constitutional norms in the sphere of economic relations is to create a comprehensive legal mechanism for the economic revival of the state, which provides for: establishing an optimal balance between state regulation of the economy and freedom of entrepreneurial activity; constitutional guarantees of the country's investment attractiveness and economic security; the formation of constitutional and legal foundations for the development of critical infrastructure and economic modernisation; the creation of legal guarantees for the social protection of vulnerable groups, especially those affected by the war. The study offers politicians, scientists and European institutions practical recommendations on how to harmonise economic management with constitutional principles.