12. 6. 201415:43

What will the accession to the Fiscal Compact bring to the Czech Republic?

On Thursday 5th June the Eurocentre Prague organized a seminar entitled: What will the accession to the Fiscal Compact bring to the Czech Republic? The current government approved the accession of the Czech Republic to the so called Fiscal Compact on 24th March 2014.

The Fiscal Compact, or formally the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, was signed by 25 member states of the European Union at a European Council meeting which took place on 2nd March 2012. Only the United Kingdom and the Czech Republic under the government of Petr Nečas decided not to sign the Fiscal Compact.

The aim of the Compact is to ensure that EU member states will abide by stricter fiscal discipline rules, coordinate their economic policies and also to improve the governance of the Eurozone. The following participants contributed in the discussion on the benefits of the Fiscal Compact for the Czech Republic: Tomáš Pavelka from the University of Economics in Prague, Aleš Chmelař from the Government Office of the Czech Republic, Jan Jedlička, EU office manager of the Česká spořitelna and finally Marek Hudema, editor of Hospodářské noviny.

They agreed that the accession to the Fiscal Compact is a good sign, however, the significance is mainly in the symbolic sphere. The accession to the Chapters III and IV would have bigger impact, as they cover key areas as economic coordination and fiscal discipline.