Czech fiscal pact entry should be decided in euro referendum - PM

Another possibility is to stage a referendum on Czech accession to the EU pact as such, Necas (Civic Democrats, ODS) said, adding that the pact transfers national powers to Brussels.

"The international treaty undoubtedly means a radical transfer of powers to the EU," Necas told the deputies.

He said the agreement introduces measures that are necessary for the euro zone´s stabilisation and trustworthiness, but at the same time it strengthens the position of the European Commission and the European Court of Justice.

For example, the agreement´s latest wording, which is not definitive, enables to create a voting cartel. If two big countries agreed on something with the EC, all remaining states would have to vote together with them, Necas said.

He said it is necessary to wait for the final text of the document that is to be binding on the euro zone members while other EU states, including the Czech Republic, could accede to it voluntarily.

The agreement is a step towards a fiscal and economic federation, Necas said.

Although the agreement could be ratified by a constitutional majority (three-fifths) of votes in the two houses of parliament, the Czech government has opted for a referendum to be held, either separately or jointly with a referendum on the Czech adoption of the euro.

"I consider the latter alternative a reasonable position," Necas said.

Further changes may occur in the euro zone by then, he added.

The Czech Republic reckons with its euro zone entry in the future but is not planning to seek it for now.

Necas said the Czech signing or not-signing the fiscal agreement would be of a symbolic character only, without any practical impact on the Czech Republic´s position.

At the cabinet meeting on Wednesday, a referendum on the fiscal pact was supported by ministers for the ODS and the junior ruling Public Affairs (VV), but it was rejected by the other junior government partner, TOP 09, which said it would not vote for it in parliament.

The server iDnes.cz today writes that opposition Social Democrats´ (CSSD) chairman Bohuslav Sobotka has offered a deal to Necas on helping the referendum plan succeed in parliament.

The CSSD reportedly wants the Chamber of Deputies to vote on the CSSD-proposed constitutional bill on general referendum, which, if passed, would also enable a referendum to be held on the Czech accession to the EU´s agreement on budgetary discipline.

Necas also confirmed today that the government is ready to negotiate about a Czech loan to the IMF, designed for the euro zone salvation, that would be lower than the required 90 billion crowns.

The cabinet is to decide on it at its meeting next Wednesday so that Necas can present Prague´s position at the EU summit on January 30.

The final decision, however, will be up to the board of the Czech National Bank (CNB) from the reserves of which the money would be loaned.

Necas ruled out the possibility of the government nodding to the loan and the CNB board being against.

If the Czech Republic loaned 90 billion crowns to the IMF, the sum would be 2.2 times higher per capita than what Poland is supposed to loan, Necas said.

Author: ČTK
www.ctk.cz