Atlantic Community:Open Think Tank Article "In Defense of the Czech EU Presidency "

February 20, 2009 | 4 comments | Print this Article | E-Mail Your Opinion

In Defense of the Czech EU Presidency

Tobias Wolny: Do not be misled by President Klaus’s speech to the European Parliament. The Czech EU presidency has done a good job so far, managing a number of unexpected international and domestic issues over the last two months. And the Czechs deserve more credit from fellow European leaders in the current debate on protectionism.

No matter how hard he tries, President Vaclav Klaus does not represent the view of the Czech government in EU affairs. We all know this but we are still entertained if not captivated by his unorthodox views on Europe and climate change.

But leaving Klaus's idiosyncratic Euro-scepticism aside, many commentators (and behind closed doors also politicians) from Old Europe are still critical of the Czech EU presidency. Why? They claim that the Czechs are too weak to cope with the enormous foreign policy and financial challenges Europe is facing. They point out that the Czech Republic is not part of the Eurozone and that it has an unstable government.

It is remarkable how French President Nicolas Sarkozy prophetically articulated all these arguments months before the Czechs even had a chance to prove their EU leadership credentials. Granted, a smaller state like the Czech Republic has more limited resources than a large one. Prague can't pull strings internationally the way Paris can. And Prime Minister Topolanek is no Sarkozy, but is that so bad? Not really. The last thing we need during the current financial crisis is Sarkozy's protectionist rhetoric and his calls for policies that are outright economic nationalism.

The French plan to subsidise its car industry with a six billion euro aid package is already problematic in terms of compliance with EU competition rules and needs to be carefully scrutinised by the Commission. But by calling on French car makers to discontinue their production in the Czech Republic and to "come home again," Sarkozy is setting a dangerous precedent. Europe as a whole will not benefit in an environment where national industries seek a comparative advantage over each other with the help of their governments.

The Czech government is absolutely right when it warns that such measures could spark economic retaliation and consequently undermine the single European market. The Czech policy response was both sensible and timely: Topolanek asked EU leaders to convene an anti-protectionism summit on March 1 to coordinate measures to be taken at the national level without violating common EU regulations.

So this is not a conflict between new members in the East and old members in the West, as we often read in the press. It is about the commendable effort of a smaller EU member to confront a particular issue that was regrettably tabled by one particular large member state.

Too bad Germany has been so passive throughout this episode. Shouldn't Chancellor Merkel be more supportive of the Czech presidency's efforts? Doesn't the Czech position correspond in many ways to our own national interests? Like Germany, the Czech Republic is a fiscally responsible export-oriented open economy; as a result of which it has (so far) been spared the financial instability of other Central East European countries. Was the spectre of investment protectionism not a priority in the German G8 agenda in 2007?

The Czech agenda in the first two months of its EU presidency has not been an easy one. As if the financial crisis, Lisbon and the energy and climate package weren't enough, the Czechs had to coordinate the European position in the Gaza war the Russian Ukrainian gas row. Coincidentally, it is during the presidency of a former Soviet bloc country that we are witnessing the first signs of improvement in relations between the EU and Russia after the war in Georgia. This may have more to do with the low oil price and Russia's economic woes than with Czech diplomacy, but at least the Czechs are not hindering this process.

The Topolanek administration is managing political challenges at home with relative ease, too. In a relatively short time it has convinced the rest of Europe that President Klaus' anti-EU rhetoric has nothing to do with the position of the Czech government. It also averted a government collapse following a coalition reshuffle in January. Just imagine what a nightmare it would have been for Germany if the federal president had constantly tried to torpedo Chancellor Merkel's climate protection efforts during the German EU presidency two years ago.

The only blunder for the Czech government - if one even wants to consider it as such - turned out to be harmless, if not funny and culturally enriching. Czech sculptor David Cerny managed to fool the Czech presidency and functionaries in Brussels with the controversial art installation "Entropa" at the European Council building. The work drew crowds of visitors and unleashed a debate about all sorts of subjects ranging from freedom of art to political correctness.

Considering all of the above I consider the first two months of Czech EU presidency to be successful. And entertaining!

Tobias Wolny is an Eastern Europe specialist and worked in the Office of the President of the Czech Republic in the 1990s. He currently works as a Policy Director for BP Alternative Energy and is a founding members of the Atlantic Initiative.

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Comments

February 24, 2009

jfl

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The Czechs should be congratulated FOR being EU-critical, not DESPITE it. Klaus, although a bit cranky at times, is a welcome voice of sanity.

February 24, 2009

Member deleted

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Thank you, Mr. Wolny, for this differentiated view on the Czech Presidency. Even though I do not find Vaclav Klaus's view on environmental issues very entertaining (at the contrary, it is rather shocking that a democraticly elected president demonstrates such a level of simple-mindedness), it is more than crucial to underline once again that he is not the sole representative of Czech policy.
Indeed, the Topolanek administration did a great job so far, reminding Europeans to stay faithful to the rules of an open-market economy even in difficult times. Sarkozy's neomercantilistic policies are a symbol for the still very converging economic traditions in the EU countries and the Presidency, along with the Commission, is assuming its role as the keeper of competitiveness and thus a common moral institution to the EU.
Unfortunately, France is not the only country tempted by protectionism and it would be unfair to brand only Sarkozy. Looking overseas, the current debate in the US about the "buy american" formula is only the tip of the iceberg. Japan has been traditionally known to pursue a strategic trade theory and to push its key industries through subsidies and high public investments in R/D.
Considering the global trend towards protectionism, the Czech's warnings are very honorable, but they need to be addressed on another, more broaden governance platform, be it the G20 meeting or the WTO.

February 24, 2009

Michael Altenburg

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Upon reflection, the Czech presidency of the EU council of ministers is a blessing at this particularly difficult juncture. Unlike France or Germany, the Czech Republic is small enough not to frighten off or intimidate any other small or big EU member country. The voice of reason, articulated by those in charge of administering the current six month phase of EU presidency may therefore carry more weight than if exactly the same arguments came from any of the EU heavy weights. This is especially important in light of the upcoming G 20 meeting which is aiming at no less than agreeing on a truly global framework of future financial stability.

Mr. Barroso comes from Portugal which like the Czech Republic has less than 11 million inhabitants. Not only Mr Klaus should realize that a successor candidate for the presidency of the EU commission coming from the Czech Republic would probably have better chances to get elected than a candidate with roughly comparable credentials from Germany or France.
Therefore the Czechs should really go for it - and mend along the way what is still missing in democratic substance and legitimacy in the further process of European integration.

February 26, 2009

Joe Noory

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Eva,

What I take from your comment is that you're shocked that someone would stray from orthodoxy? Don't be. It's called diversity of opinion. It's *healthy.*

Besides, when you look at what Klaus could ultimately achieve, not that this has anything meaningful to do with NATO or to me as an American, is to introduce federalism, the concept out there if you want to ensure that there is a check against future tyranny.