Speech by Prime Minister Petr Fiala on the current international situation

Prime Minister Petr Fiala delivered a speech on the current international situation at the Kramář Villa, 24 February 2025.

Fellow citizens,

I have decided to speak to you today not only because it has been exactly three years since war broke out not far from our borders, with far-reaching consequences for the whole of Europe. I am also addressing you now because I know that in recent weeks, many of you have been feeling deeply uncertain about developments on the international stage. You are concerned about what these changes might mean for us and for the future of our children.

I will speak openly, as I have always sought to do throughout my public service. I want to tell you about the challenges we face, how I see the current situation, and how I intend to proceed in the coming months. The situation is by no means simple, but there is no reason for despair.

The international order – the unwritten rules that govern relations between states – is undergoing its most significant transformation since the fall of communism in the late 1980s and early 1990s.

The foundations of this international order, however, were laid even earlier, in the aftermath of the Second World War. Among other things, they were built on the strong role of the United States of America. As a global leader, the USA felt a great responsibility for international developments, actively supporting democracy and freedom in various parts of the world while guaranteeing and ensuring the security of European democracies.

Since then, a great many fundamental changes have taken place – not only political, but also economic and technological. New challenges have emerged, as have new global players with significant ambitions to influence international relations, such as China.

President Trump has decided to completely reshape American foreign policy. The speed, force, and rhetoric of this shift may be surprising, but the USA pivot away from a focus on Europe should not come as a shock. It has been happening for at least a decade, and I have repeatedly drawn attention to it. However, for a long time, European countries refused to acknowledge this shift in American public debate and did not take sufficient responsibility for their own security. We did. This is one of the reasons why my government had already committed to increasing defence spending to two percent of GDP before Russia’s aggression against Ukraine began – and we delivered on that commitment. But even that will not be enough in the long run.

This new international reality – its dangers, its risks, and the shifts in American foreign policy – must be acknowledged. This does not mean that the United States is no longer our ally. But we must recognise that it is now an ally that is making it clear that the time has come for European nations to take responsibility for their own affairs. And this is not only about defence and security, but also about economic cooperation and international relations.

What must be done?

As a mid-sized European country, the Czech Republic faces a critical choice. We can either treat these changes as an opportunity and seek to make the most of them, or we can allow ourselves to be paralysed by them – at great economic and security cost.

Other European countries, as well as the European Union as a whole, face the same decision. It will not be easy, nor will it be comfortable. But from my discussions and negotiations with other European leaders, I know that most of them understand the urgency of the situation.

We, the Czech Republic and its citizens, have several key advantages that we can rely on in the months and years ahead.

First and foremost, our painful historical experience has taught us that an undemocratic Russia with imperial ambitions is a grave threat. The best way to avoid this danger is to be strong and decisive. Our NATO membership, our EU membership, European defence cooperation, and our collective defence spending are all highly effective tools to ensure the long-term security of the Czech Republic. Our primary goal must now be a strong Europe – a Europe capable of deterring Russia from further military aggression against sovereign European states. And today, as we mark the third anniversary of Russia’s invasion of Ukraine, is an appropriate moment to reaffirm this.

To achieve this, we must take concrete steps immediately.

First: We must significantly increase our defence spending to at least three percent of GDP within the next few years. We must secure these funds and ensure that they are spent wisely and effectively.

Second: At the European level, we must swiftly adopt new fiscal rules that will enable us to make these substantial investments in defence and security. For example, the European Union should allocate the unused 93 billion euros from the Recovery Fund to strengthening our defence capabilities, supporting joint military procurement, and reinforcing critical infrastructure.

Third: We must use the frozen Russian assets across Europe to provide further military support to Ukraine.

Yes, these measures will require additional spending. But they also represent a tremendous opportunity – particularly for us, the Czech Republic. We are a country with a strong tradition in engineering and a historically significant defence industry. Our arms manufacturers are world-class and economically strong, expanding into new markets, including the United States, in recent years.

Let us make full use of this advantage. In the coming years, our European allies will be strengthening their defences, and we can play a key role in supporting them. This could provide a major boost to our national economy, enhance our global competitiveness, drive innovation, and secure long-term employment. According to various analyses, every koruna invested wisely in defence generates three korunas in the Czech economy. We cannot afford to waste this unique opportunity.

I have spoken several times about Europe and European nations. It would be a mistake to think that the Czech Republic can prosper while the European Union does not. In today’s shifting international landscape, our European alliance is more crucial than it has been in the last twenty years.

However, we must also acknowledge a major problem and address it swiftly. In recent years, the European Union has become excessively focused on regulating everything imaginable – at the expense of its core mission: economic growth, prosperity, and global success. There is no other way to secure long-term high living standards and security for Europeans.

We must, therefore, urgently work towards systematic deregulation across the EU. This is not just about cutting bureaucracy. It requires a fundamental review of the Green Deal and the entire decarbonisation agenda. If we fail to do this, we risk turning Europe into an economically uncompetitive museum in the new global order. That would be an unforgivable mistake.

My fellow citizens, we are living in a time of profound change. We must do everything in our power to navigate it successfully, setting aside everyday political disputes where possible. For our country to succeed, it is vital that we, as elected representatives, present a united front and work together to defend the fundamental interests of the Czech Republic on the international stage.

We have a strong foundation to build upon. In recent years, we have made significant investments – not only in defence but also in infrastructure, education, and innovation. At the same time, we are positioning the Czech Republic as a key global player in nuclear energy and semiconductor manufacturing.

We have also led important initiatives within Europe. Beyond our munitions initiative and our efforts to combat illegal migration, we successfully pushed for a revision of the Euro 7 regulation, which threatened to further undermine our automotive industry. We are now working to secure the cancellation of punitive fines that could unnecessarily drain funds from car manufacturers – money that is crucial for technological advancement and survival in the current challenging environment.

Fortunately, we have allies across Europe who see the threats and opportunities as we do. We share a vision of a strong, secure, and prosperous Europe. Only such a Europe will command respect in an increasingly competitive world – where, to earn international recognition, one must bring not only ideals to the negotiating table but also military strength and economic power.

There is no need for pessimism today. We must view reality clearly, act responsibly, and make the right decisions in time. That is exactly what we are striving to do. And I firmly believe that we will emerge from these challenges a stronger nation.

Have a nice evening.

Petr Fiala, Prime Minister