Presidency Conference on: 'Europe of Engaged Citizens – Resources and Sustainability'

Dear Ladies and Gentlemen,

Social sciences believe that non-profitable organisations, and civil society fulfil an essential and irreplaceable role in present modern democratic states. They form the 'third sector' which complements the public and private sectors. Societies in which the first two sectors only dominate or even just one of them, are less stable, less productive and less harmonious. Societies with foresight thus invest in the development and cultivation of the third sector as much as in the improvement of public administration and the development of economy.

The state and image of civil society and non-profit sector and their relationship to other sectors is a result of a long-term evolutionary development. Here in central Europe, where the development of society was forcibly interrupted for a long period, is an apparent new development and formation of a civil society and non-profitable sector. In the past twenty years tens of thousands new organisations were transformed and established.

I visited a number of places in the Czech Republic within the last 3 months and noticed with pleasure how strong a position some non-government organisations have developed in their municipalities. In many towns they effectively support services in the public interest. In some places they are legitimate partners of the management of municipality and the realisation of common views on a better lifestyle in the area. Yes dear friends, the third sector has already become an instrumental part of our society.

In order for the third sector to fulfil its role in the Czech Republic it is necessary to prepare sufficient conditions for it. These conditions are given in particular by legislation and financial resources. According to our European experience both elements are to a large extent designated and provided by the state. Unfortunately the reality is that current legislation has frequently evolved in an erratic fashion and without clear conceptual understanding. In the case of financial distribution the 'salami method' has been implemented which does not concern the needs of the non-government sector which is itself often surviving amidst chaotic conditions, and regretfully does not even concern the needs of the public. Yes according to our findings Ministries operate with the same 'cake' and distribution of resources as they did under the totalitarian regime!

The resigning government promised to correct the situation in the third sector in their program declaration. The government also prepared a number of concrete law amendments and one significant new initiative which is a new Civil code. The Government made a significant effort to discuss this in the Chamber of Parliament. This role will now be taken up by the new Chamber of Parliament which will be formed after the early elections in the Autumn.

Another task of the Government was to prioritise the issue of public benefit within a legislative framework. This task was realised by the Government Committee for non-government and non-profitable organisations which I chair. The Committee prepared a proposal for the law on organisations with the status of public benefit and discussed the matter with the public. This law would give to the current organisations that complement services provided for public the stability and long-term perspective for further development.

The law names a number of areas of public benefit. It should be relevant to organisations providing health, social, education and other services which aid democratic development, abolishment of poverty, protection of civil and human rights, abolishment of discrimination based on differences of race, ethnicity, religion or other discrimination prevented by law, support of science, research, protection of the environment and social and economic development. The status of the public benefit should be especially reflected in tax benefits.

The law requires a higher level of transparency from organisations and the return of all the profit back for their further development. The law states that organisations must develop their activities for a longer period of time. Only such organisations can then be a real partner of the state administration, local administration and public institutions. The form of the law is now extensively discussed by Ministries. The law will probably still undertake a long development.

The Government Committee for non-government and non-profitable organisations prepared new provisions of acts on foundations and funds as well as an act on public benefit organisations. These new amendments of laws should lead to their improved and more effective function. They offer better transparency of financing, unify management practice of non-profit organisations and delegate the responsibility of their statutory management. The new laws react to the present situation of foundations and funds of public benefit organisations in particular. The form of these laws was also discussed in the Committee Forum.

Ladies and Gentlemen, the so called First Czechoslovak Republic was built on a communal lifestyle. The combination of Civil activity with the initiative of several enlightened people was the reason for the establishment of the Republic in 1918 and why it made such an important contribution to history of Central Europe. I venture to say that the civil ethos of the First Republic strengthened it also in an economic sense.

We : countries of Central and Eastern Europe have lost our continuity in half a century of totalitarian regimes. We still haven't got laws which would create good conditions for civil commitment. The customs upon which civil communal life was founded in the forgotten years have also been lost.

Our task especially for the newly joined Member States of the European Union is to develop good quality and long lasting sustainable foundations for public benefit activities. Up until now we have often been doing it in a chaotic manner so now is the time to begin caring for further development of civil society in a more conceptual way. Therefore we need to critically reflect on the development so far and exchange experiences across Europe which no longer has borders. We also need to discuss the best form of legislation and fiscal environment in our states. Only then will we be able to better utilise the potential of the commitment of citizens and their organisations for society.

Ladies and Gentlemen, I believe that this conference will help you to find many common aims across Europe. It gave inspiration to many people through the presentation of successful projects especially in the area of partnership and financing of organisations from more resources. I believe that this conference which ends today in Brno, provided a considerable contribution to the debate on the development of organisations of committed citizens in the Czech Republic as well as in other European countries.

Thank you for your attention.