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The impetus for change
Czech government resigns following low showing in EP elections

Czech Ambassador to Hungary, HANA HUBACKOVA, attributes the recent resignation of the Czech Government head to the ruling party’s poor showing in recent European Parliament elections. Yet, she is convinced a change in government will not have a dramatic effect on her country’s economic outlook. Hubackova, who has been posted in Hungary since 2002, tells DT – Diplomacy and Trade, the recently-accepted EU Constitution is evidence the bloc can function with 25 members. While the process of its ratification among member states may not be smooth sailing, she says the EU is indeed ready to be governed by a new set of rules.

BY NÓRA LAKOS
PHOTOS Vanda Katona / DT

 
 

EU leaders finally agreed to a new constitution. What were the Czech aims, and which Czech proposals were included in the final version?

HANA HUBACKOVA I would like to point out that we participated quite actively in both phases of the preparation of the Constitutional Treaty, that is in its preceding conventional phase as well as in the consequent inter-governmental phase. We consider the text as recently finalized as a good one. What we wanted to achieve was a well balanced text providing for an effective functioning of the EU and safeguarding at the same time the principle of equality of all member states. This has happened, and thus, we do feel satisfaction with it. The text was a compromise between various interests and priorities. Yet the main objectives of the whole process of negotiations have been achieved. The Constitutional Treaty guarantees those things that should be guaranteed for each and every member of the EU – now and in the future – and prepares for an effective decision making process.

Will member states have trouble ratifying the document?

HANA HUBACKOVA Given the complexity of the text of the Constitutional Treaty the ratification process may not be completely easy. We will have to be able to explain to our citizens its importance, what it means for the functioning of the EU and through it how it gets reflected in their everyday lives.

Czech President Vaclav Klaus, following the European Parliamentary elections, called it a “huge mistake” to join the EU. Does this statement reflect strong euro-skepticism in your country?

HANA HUBACKOVA I don’t think that what is called euroskepticism is any stronger in my country than it is the case for other countries. There are people who realize that taking into account the global context there are challenges in European development, and we have to face them. The EU does not function in isolation, but in the context of a global world. President Klaus belongs to those who voice their concerns over the challenges recognizing at the same time the opportunities the EU brings to our citizens.

Do you think the resignation by Vladimír Spidla, the former head of the Czech government, could bring a crisis in confidence domestically or among international investors?

HANA HUBACKOVA I do not really think this is going to turn into a crisis at all. Neither do I do think that the current political situation will influence the performance of the Czech economy. It will be handled in an organized and constitutional manner that will assure there be no insecurity in the business community. The economic stability of the country has been quite strong over the past number of years with a steady GDP growth, very low inflation and low interest rates. There are no indications this development should change.

What were the main reasons for Spidla’s resignation?

HANA HUBACKOVA This is a quite complex question. But one can perhaps see the main reason for the Prime Minister’s decision re resign was the poor result of the governing coaltition, including the Prime Minister’s Social Democratic Party, in the elections to the EP. This probably provided the impetus for the prime minister to take this decision.

There is competition between the Czech Republic and Hungary in the economic field. Both countries are strong in informatics, as well as carpart producing sectors. Do you think this competition can turn into a kind of partnership?

HANA HUBACKOVA A certain level of competition is very healthy, and should be healthy both for the Czech and the Hungarian business communities. Maintaining competitiveness is one of the primary goals shared by both the Czech and the Hungarian governments. The informatics and automotive industry belong to the areas where companies can and do cooperate extensively- motors produced by Audi Hungary in Gyôr are used in Skoda cars can serve as a good example.