Euro to survive only if euro zone becomes federation - Czech PM

"At present, the eurozone has no other choice: either it will disintegrate, which no one is supposed to seriously wish, or it will shift towards a federal economic entity," Necas (Civic Democrats, ODS) writes in his article focusing on the EU´s planned fiscal discipline pact.

The Czech Republic, along with Britain, were the only two states not to join the fiscal pact at the EU summit on Monday.

"By acceding to the budgetary pact we would not only nod to the euro zone´s shift towards a future fiscal federation but we would also say we want to participate in the project even at such cost. These are two quite different things," Necas said.

Although the agreed-on treaty is a crucial step towards federalisation in terms of the procedures it sets, it fails to solve the real core of the present problems, Necas continues.

By joining the treaty, countries give up their right to a free voting on budgets in the EU, thereby giving up a part of their sovereignty, Necas writes.

"They pledge to jointly coordinate their further debt policies. All this means giant steps towards the euro zone´s federalisation," Necas writes.

He says another reason to make him refuse the treaty is the course of the EU summits.

"I must emphasise that I´ve been disappointed by the European Council´s way of negotiating recently, and so have many of my counterparts, prime ministers, who may refrain from saying it so loud," Necas writes, adding that documents are provided to the summit participants´ in the last moment, without the participants having the time to make up their mind, work out an analysis or consult their national governments.

Necas recalls that the fiscal pact treaty will continue to be discussed. He said an extraordinary EU summit may be convoked before the regular one due in March.

At the Brussels summit on Monday, the Czech negotiators pushed through a decision that any EU state can join the fiscal pact anytime without any conditions.

Author: ČTK
www.ctk.cz