The Embassy of the Czech Republic in Spain plays a crucial role in promoting and developing relations between our two countries. The Czech ambassador to Spain gave us insight into the current situation in the Czech Republic.
– How has the structuring of the Czech Republic turned out after the separation from Czechoslovakia in 1993?
We cannot analyze the Czech Republic solely through the lens of its eight years of existence. The true history of the present-day Czech Republic begins in late 89 with the profound political and socioeconomic changes sweeping across Central Europe and continues with the Czech Republic's separation from Czechoslovakia. The dissolution of the Czechoslovak Federation was a very difficult and painful event for many Czechs, but at that time, political coherence and pragmatism prevailed over the will of public opinion. In Slovakia, the situation was the opposite; there, the majority of public opinion favored Slovakia's independence as a sovereign, national, and independent state.
The dissolution of Czechoslovakia, of course, had its consequences. Fortunately, it was a politically negotiated dissolution agreed upon by both entities, so the political repercussions never spiraled out of control.
The economic consequences in the Czech Republic did not pose any serious problems. From a macroeconomic perspective, the Czechs could continue with economic transformation and privatizations, managing the national economy without significant structural economic problems.
Since the dissolution of the Czechoslovak Federation, the most notable feature of the Czech Republic has been its political, economic, and social continuity. From 1993 onward, the country has experienced various periods of economic development. There was a period of economic slowdown between 97 and 99, but the country managed to overcome this setback. Currently, the Czech Republic is growing at a rate of almost 4% annually, well above the average for European Union countries.
This fact is very important because the country is engaged in a significant process of integration into European structures and the implementation of this multidimensional project, which has its legal, economic, social and security characteristics, implying that it is much easier, more manageable, than if we were to carry it out in a period of economic slowdown.
– What is your opinion of the future "New Europe"?
Regarding the country's integration into the European Union, it is an irreversible process; it is the only viable and open option at this time. There are no alternatives in Europe, and we are a European country, so what is happening in Europe has an immediate impact, directly or indirectly, on what is happening in my country. Integration into the European Union is a reality. Europe is returning to its natural and inherent political dimensions and borders, and it is strange to maintain an artificial separation that would draw a dividing line within the European continent. The European Union can only succeed if it is an open project, open to new members, open to new ideas. I believe that the debates about European identity are, in part, a consequence of what Europeans—both in the member states and in the countries of Central Europe, including the other candidate countries—are seeking, overcoming the aftereffects of a Europe divided for more than forty years, since the Second World War. I see it as an objective process, which can be carried out more or less quickly, but it is an inevitable process and I am happy to say that in Europe there is a consensus, both political and human.
– What do you think the relations between the Czech Republic and Spain are like from a political and economic point of view?
We are a small country in the heart of Central Europe, and therefore the strengthening of ties with our immediate surroundings is logical, inevitable, and desirable. Desirable from both a political and an economic perspective.
The relationship between the Czech Republic and Spain has undergone a spectacular development over the last ten years. If we think back to 91-92-93, we perceived ourselves as (albeit two European) peripheral countries. Today, the situation is entirely different. The two countries are increasingly closer, and this is evident in political, economic, and trade relations.
What message would you send to Spanish businesspeople who have their sights set on this part of Europe?
Over the past two, perhaps three years, Spanish businesspeople have begun to recognize the economic potential, the geographic location, and the opportunities that this presents. The Czech Republic is surrounded by the most demanding and competitive market in the European Union, and businesspeople are realizing that the Czech Republic can serve as a base for expansion into these highly competitive markets. We are already seeing the first examples of investments from Spanish small and medium-sized enterprises (SMEs) that are establishing themselves in our country with precisely this perspective: it is easier to set up in the Czech market and from there expand into Germany, Austria, and other markets.
It is realistic to expect the Czech Republic to join the European Union in 2004, and therefore, those who seize this opportunity now will return to the European single market upon the country's accession. Furthermore, the conditions currently offered by the Czech Republic are excellent, and there are already examples of Spanish companies successfully leveraging these incentives.
The investment incentive system in the Czech Republic is a highly sophisticated yet simple system. Sophisticated in its operation and simple in its application, it also ensures compliance with European standards.
– How would you rate the privatization process carried out in the country?
The privatization process has been underway for 10 years. In the early 90s, we launched an unprecedented privatization, since 99,9% of companies were state-owned. Therefore, it is extremely difficult to compare the privatization process in our country with the privatization of the mining sector in Great Britain during Margaret Thatcher's government, or even with the Chilean privatization process.
It is also fair to say that this complexity and the scale of the task led us to certain errors or methods that, from an economic standpoint, can be questioned. The method of privatization through bonds, which was developed in Czechoslovakia and later in the Czech Republic, still has its supporters and fierce opponents. From an economic perspective, I believe that this method, applied generically, created some problems in certain sectors. But we have learned from our mistakes and doubts and have managed to correct, if not all, then many of them.
At this moment the privatization process is in its final phase; we have now completed the privatization of the financial sector, where all banks are in private hands.
We are now engaged in three major projects: the privatization of the energy sector, including both electricity generation and distribution networks, which will be privatized as a complete package; the privatization of the fixed-line telephone sector; and the privatization of the landline telephone sector. I would venture to say that before the general elections to be held in June 2002, a good part, if not all, of these privatizations will have been completed.
-To what extent will the War in the East affect the Czech Republic?
We are an allied country (like Spain) in the Atlantic Alliance, so in terms of European and global security, we share all the problems that you know about, and that are discussed daily in Brussels.
On the economic front, although the Czech Republic is not a member state of the European Union, it is a country that is economically integrated into the European economy; more than 70% of our trade is with the European Union, so this gives an idea of how the interdependence of European economies works.
I could repeat, although I believe it is not necessary, the words of horror, of revulsion and the determination of the country to take a firm part in the International Alliance to confront terrorism and end it as a phenomenon that today is the greatest threat to democracy, prosperity and peace in the world.
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