CRIMINALISATION OF ECONOMIC OFFENCES AS AN INSTRUMENT OF STATE ECONOMIC POLICY: LIMITS OF EFFECTIVENESS AND RISKS OF EXCESSIVE INTERVENTION

Abstract

The present article examines the criminalisation of economic offences as an instrument of state economic policy in the context of ensuring economic security. The relevance of the study is driven by the need to effectively combat economic crime in Ukraine under conditions of martial law, a high level of the shadow economy, and ongoing European integration transformations, as well as the necessity to prevent excessive criminal law intervention in entrepreneurial activity. The objective of the present study is threefold: firstly, to elucidate the conceptual foundations of the criminalisation of economic offences; secondly, to determine the limits of its effectiveness; and thirdly, to identify the risks associated with the excessive application of criminal law mechanisms in the sphere of economic relations. The findings demonstrate that the criminalisation of economic offences can only be effective if based on the principles of proportionality, subsidiarity, legal certainty and ultima ratio. Its effectiveness has been shown to depend directly on the institutional capacity of the state, the likelihood of enforcement, and the quality of law enforcement practice. Furthermore, the study shows that excessive criminalisation can lead to the devaluation of criminal law, increased pressure on businesses, heightened corruption risks, a deterioration in the investment climate and an expansion of the shadow economy. The study's scientific novelty lies in conceptualising criminalisation as an element of state economic policy from the perspectives of economic and legal analysis. It also involves determining the limits of its effectiveness, taking international experience into account. The practical significance of the results lies in their potential application to improve the regulation of economic relations under criminal law, particularly with regard to revising economic crime provisions, developing compliance-oriented mechanisms and aligning Ukrainian legislation with European Union standards.