INTERVIEW Before taking over the post of Secretary of State for EU Affairs, Tomáš Prouza was active both in private and public sector. He was Deputy Minister of Finance between 2004 and 2007, where he gained his nickname “Mr. Euro”, founded a well-known financial portal www.penize.cz, was one of the founders of financial consulting company Partners for Life Planning and before returning back to public sector in February 2014, he worked for the World Bank both in Prague and Washington.
On the occasion of 10 years anniversary of accession of the Czech Republic to the EU, the Office of the Government of the Czech Republic presented a study showing a clear positive impact of EU membership on Czech economy. Why do you think that the EU is still perceived in a negative way by so many Czechs?
I don’t think the Czechs perceive the EU in a negative way. Unlike some of the politicians, most of Czechs are not Eurosceptic, they are first of all pragmatic. The Czechs are aware of what the benefits of our membership are – especially the right of free movement that provides them the opportunity to work, live and travel freely across the EU. They also see the physical benefits of our membership – new jobs, new roads, better environment, etc. From my point of view, the main problem is the lack of awareness about the role the European institutions are playing in the integration process. Many Czechs find it difficult to understand the role of the European parliament; they don’t even know our MPs. Despite the tangible benefits they appreciate every day, the EU itself remains a distant and incomprehensible structure.
What do you think needs to be done to change this situation? Does the EU succeed in communicating the benefits of the membership to EU citizens?
We need to speak about the EU, present the outcomes of the integration project, emphasize the benefits of our membership. The Czech government has taken this way and is working hard to improve communication with the public. I heard about the idea to introduce the European tabloid newspapers supposed to attract the attention of European citizens and bring the EU affairs closer on a daily basis. Though it is only a joke, I really believe that the best way to make the EU “popular” is to show how the EU influences our everyday life. In this respect, a lot still remains to be done and there is a great deal of work ahead of us.
Majority of the states that joined the EU in the same year as the Czech Republic have already introduced or are introducing euro. Don’t you think that the Czech Republic should at least set a binding time framework for euro adoption?
The Czech government is aware of our commitment to euro adoption and we will take all the steps we can to complete this issue. Our ambition is to make sure there are no fiscal or technical obstacles for the Czech Republic to decide about the euro adoption before January 2018. As the next parliamentary elections will take place in November 2017, it will be up to the next government to take the decision. Therefore, we would like to prepare the Czech Republic for entrance to the ERM2 mechanism – the waiting room for euro. The second important step is to guarantee that the Czech Republic will keep the Maastricht Criteria. But the final decision about the euro adoption will depend on the next government.
When we look at annual competitiveness benchmarks, the Czech Republic is losing its position every year and the same goes for the EU at the global level. What should the EU do to reverse this negative trend?
The EU is now reviewing the results of the Europe 2020 strategy, the key ten-year European strategy for growth and jobs, and discussing possible revision of its targets, action programmes and governance for a post-crisis period. I believe the EU should focus on four key areas: investment in innovation, education and infrastructure; labour market reforms; improving business environment and dealing with the administrative burden; internal market deepening including digital market. We also need to make sure that no European policies worsen our competitiveness against the US or Asia.
The Italian Presidency of the Council of the EU suggests more flexibility in the EU fiscal rules for the sake of increased investment. Do you think it’s the right way to stimulate growth in the EU?
The EU is gradually moving from the „crisis mode“and discussing common efforts how to boost economic growth and jobs which belongs also to the top priorities of the Italian Presidency. Promoting investment which has been hit during the crisis, also in the Czech Republic, and boosting structural reforms should play the key role in this process. Existing Stability and Growth Pact rules already include sufficient flexibility which should be fully used. In my opinion, Member States have enough space for investment respecting the current fiscal rules. Loosening of the rules could harm our credibility and the progress made so far. Our priority should be looking at options strengthening the ability and willingness for structural reforms and effectively using the existing European resources, not changing fiscal rules.
What do you think should be the absolute top three priorities for the EU for the next 5 years?
Number one: stabilization of the European economy and its sustainable development. Number two: decrease of unemployment rate, especially among the young. We must prove to the young generation that the EU is still the best place for their career and life. Number three: more effective internal market and reindustrialization of Europe as both are critical for the Czech Republic as the most industrial and highly export-oriented country. I know you asked for three priorities but forget also must mention the issue of energy security which – if overlooked – might prevent us from dealing with all three priorities I just mentioned.
Published in Prague Leaders Magazine
