Speech of the Prime Minister of the CR, Mirek Topolánek on the Occasion of Opening of the Colloquium of Entrepreneurs in Budapest on 29th March 2007

Dear ladies, dear gentlemen,

I could talk about bilateral trade of the Czech Republic and Hungary. I could talk about figures, prospects, on the individual spheres of economy. But you certainly know all that better than I. I do not want to pretend that I know more about these concrete matters than I learnt from materials, which had been prepared for this visit.
I will be speaking more on political preconditions of trade and entrepreneurship development, than on the trade and entrepreneurship themselves. Everybody should stick to his last. And in spite of the fact that I belong among you because of my roots, nowadays I am rather engaged in politics.
It is true that a government cannot help entrepreneurship, but it can harm it. If we take into consideration that the Czech Republic has been the 10th greatest trading partner of Hungary since 2004, (and I stated one figure as you can notice), it is undoubtedly because of elimination of trade barriers; first, within the Visegrad 4, and then following our accession to the EU.
You certainly know well what results from it. It is an interest of Hungary, of the Czech Republic, citizens of these countries and entrepreneurs on both sides of frontiers, to continue in the liberalization of the internal market of the EU.
Both the Czech Republic and Hungary belong among those countries, which are promoting accomplishment of the single market and elimination of all discriminations, whether they concern free movement of workers or services or unequal allocation of subsidies. I am convinced that full liberalization of the EU will contribute to all – also to those old countries, which rather afraid of it and, which try to postpone it.
Even nowadays it is evident that accession of new countries to the EU did not threaten entrepreneurship atmosphere within the original 15; on the contrary. All countries have profited from enlargement of the market, from new opportunities, from higher demand, from better allocation of resources.
The accession to the Schengen area will be another impulse of the development. Removal of frontier bars has not only great symbolical significance but also practical significance. It concerns removal of further barrier, after all, in spite of the fact that the barrier is rather small. Therefore we have been fighting for observance of the original deadline; we were fighting jointly and successfully.
We need to complete removal of barriers in the framework of the EU. And it is also the motto of the Czech Presidency of the EU, which will fall on the first half of 2009. When speaking about relationships with third countries – and Hungary and the Czech Republic want to cooperate on third markets – the European Union must be much stronger and must defend interests of European entrepreneurs better. In the WTO and also in relation to the individual economic powers, the Union must be a strong player. We need full internal freedom and unity showed outward.
Nowadays an opinion prevails in the European Council that we should set an example to the rest of the world. That we ourselves should reduce industry and only then request the United States and China to do the same. I am not quite sure if an opposite would be better. Anyway, climatological religion is on the rise and we cannot do anything else than to pay the price and to try to gain as much as possible of this new market for ourselves; and I emphasize that it is artificial market.
While I have serious doubt regarding policy of renewable resources, I really support an effort of the EU to strengthen research, development and innovation. And I would be very pleased if entrepreneurs take this challenge seriously; if they would be more engaged in activities of research centres and universities and also in the framework of cross-border cooperation. For the government that I lead, support of science and research is an absolute priority and this fact will be reflected in the proposal of the state budget for the next year.
It is the right chance for business, which will be supported by the government not only through money but also through legislation, which will improve conditions for private investments in science. We are preparing them. Beside of cutting taxes, regulations and bureaucracy, development of innovation is the second key to global competitiveness. And I agree with the effort of the European Commission to restrict governments regarding allocation of public supports and incentives. Thanks to them the Czech Republic and Hungary have acquired a lot of foreign investments, it is true. But it is also breeding ground for corruption. Thus, we are forced to seek for other transparent ways of business, which would be in compliance with the market principles. We are aiming at creation of good conditions for all, for foreign and domestic ones, for big and for small ones.
The last issue, I will mention, is using structural funds of the EU. I do not think that subsidies are the best way how to stimulate economic growth. But if those funds are here, it is our duty to use them totally. We are simplifying chances for using these funds. The rest is up to you, entrepreneurs. I will conclude my speech tersely by a quotation of Bill Gates: "It is better to anticipate the future than to create it." I do not think it is necessary to add anything to it.
Thank you for your attention.