Czech PM says he did not rule out signature of EU fiscal treaty

Necas was defending his procedure in Brussels in the Chamber of Deputies.

Lubomir Zaoralek, deputy chairman of the Chamber of Deputies and the opposition Social Democrats (CSSD), dismissed Necas´s argumentation as "drivel."

"I did not rule out the signature, I only did not pledge to add it," Necas said.

The mandate the government gave him says "the Czech Republic will make a decision on a possible signature under the treaty only after it thoroughly studies its final text," Necas said.

Agreement on the treaty was reached at the January summit at which representatives of the EU member states were to politically pledge they will sign it.

The draft treaty is to introduce a debt brake and support the euro zone countries' budget responsibility.

The document has only been refused by the Czech Republic and Britain.

Necas said many provisions of the treaty are open, which means that their real character will only show in practice.

"What we know is that further important powers are being transferred to EU institutions and that the character of European cooperation is changing towards fiscal federalism," Necas said.

He said the treaty will allow the two largest EU countries, (Germany and France) together with the European Commission to order countries to reduce their possible excessive budget deficits.

Zaoralek said the treaty will not lead to any transfers of powers and that it is only an agreement of EU member states introducing duties for states using the euro.

The Czech Republic does not have the EU single currency.

Zaoralek recalled that Necas´s stand has caused a rift with Foreign Minister Karel Schwarzenberg, TOP 09 chairman, who said Necas´s refusal of signature has harmed Czech interests.

Zaroalek also dismissed as "nonsense" Necas´s apprehensions that the treaty is the first step on the path towards a real fiscal and economic union.

Necas reacted saying German Chancellor Angela Merkel and French President Nicolas Sarkozy speak about it this way.

Author: ČTK
www.ctk.cz