By rejecting the treaty on fiscal responsibility, Prime Minister Nečas is leading the country to ruin

Prime Minister Nečas’s rejection of the treaty on fiscal responsibility will lead the country to ruin, isolation, and out of the European Union.

 Prime Minister Nečas took an absolutely incomprehensible step yesterday in Brussels when he decided that the Czech Republic would not sign on to the treaty on fiscal responsibility.  This is even more puzzling coming from a Prime Minister whose party refuses any fiscal economic stimulation, even during the most serious of economic crises, advocates a fiscal constitution, and zero deficits for public finances.  Prime Minister Nečas clearly does not understand that he leads a country which does not generate revenue on financial markets like the United Kingdom, but a country which profits from the real economy and is absolutely dependent on exports to the euro zone.  To a certain degree, the United Kingdom can afford an irresponsible policy towards the EU, since it still has its Commonwealth and its former colonies, with which it can strengthen its commercial ties.  Someone in the Government’s Office should whisper in the Prime Minister’s ear that the CR doesn’t have any Commonwealth or the city of London…

 Equally absurd is the argument that the disapproval of Václav Klaus made it impossible for the Prime Minister to sign the treaty.  At this juncture one must keep in mind that the presidential term of Václav Klaus will be ending within a year, so all Nečas would need to do would be to make sure the final ratification of the treaty takes place after February 2013.  This would not be a problem for this treaty, since it only goes into effect following ratification by 12 countries.  The ability of the President to do damage on this front is considerably limited.

 For ČSSD, entering into similar treaties would not be entirely straightforward because the EU devotes too little attention to economic growth, employment, and social cohesion.  We would therefore demand changes in EU policy in these areas.  Nevertheless, the most important thing for the Czech Republic at this moment in time is to remain in the European mainstream, and not opt for isolation.  I therefore call upon the Czech government to remedy its mistake yesterday and immediately sign on to the treaty on fiscal responsibility and the Euro-Plus Pact.

 Jan Mládek, ČSSD Shadow Minister of Finance