Britannia Radio

Most readers know that I regard Vaclav Klaus as one of the real 
heroes of a democratic Europe.  His record in opposing the Communist 
masters of his country is beyond criticism; his patriotism is 
unsurpassed; his opposition to the entrenched Franco-German axis 
which runs the EU is inspiring  and his economic orthodoxy is an 
inspiration in these dark days.

Sarkozy cannot stand him which adds to his stature in my eyes!  
Sarkozy has loved strutting the stage in his puffed out glory as the 
president of the EU ,  He resents the fact that that position is only 
a temporary one and has made several moves designed to keep him in 
the chair, albeit as either part of a triumvirate or as the head of 
the economic sub-committee.  He will meet violent opposition to both 
ideas; to the first from the Czechs and to the second from the Germans!

This assessment of the coming 6-month Czech presidency is very 
valuable therefore right now.  It is perhaps a pity that Bloomberg 
should have drawn so heavily on such a Federalist source, but his 
account gives a good idea of the stormy waters ahead and the world's 
economies totter on the brink.

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BLOOMBERG    26.12.08
Czech Bickering May Hamper EU Anti-Recession Efforts (Update1)

By Andrea Dudikova and James Gomez

Dec. 26 (Bloomberg) -- As the Czech Republic prepares to assume 
European Union leadership for the first time, the nation's two top 
officials are clashing over the EU's merits -- and in the process 
threatening to hamper its efforts to battle the economic crisis.
The bickering between President Vaclav Klaus, who calls himself an 
"EU dissident," and Prime Minister Mirek Topolanek means the Czechs' 
six-month turn in the rotating EU presidency, starting in January, is 
unlikely to match that of the current occupant, French President 
Nicolas Sarkozy.

"It's pretty uncomfortable to hold the EU presidency when you've got 
a euro-skeptic leader," Shada Islam, an analyst at the European 
Policy Centre in Brussels, said in an interview. "The hyperactive, 
proactive French EU presidency under Sarkozy is going to be a very 
tough act to follow."

The French president forged a joint approach to bank bailouts, a 
climate-change package and the bloc's revised governing accord, known 
as the Lisbon Treaty. Klaus, whose Czech office is largely 
ceremonial, refuses to fly the EU flag at his Prague Castle office; 
Sarkozy said this month that "we were hurt" by the slight.
Klaus countered on Czech television Dec. 24 that Sarkozy's leadership 
-- and what he called a refusal to heed criticism -- "certainly hurts 
the European Union and hurts Europe."

A 67-year-old economist who helped build the Czechs' post- communist 
democracy, Klaus has likened bank bailouts to "old socialism," 
slammed the Lisbon Treaty as "contradicting Czech sovereignty" and 
called environmental issues a "luxury."
'Larger Than Life'

"Klaus could really become a problem for the Czech EU presidency," 
said Jan Techau, an EU analyst at the German Council on Foreign 
Relations in Berlin. "He doesn't have much concrete power, but he's a 
larger-than-life figure in the Czech Republic. His words carry 
weight, and he's always willing to break with diplomatic norms."

Klaus hasn't hesitated to criticize the euro, the common currency to 
be introduced in neighboring Slovakia next week. He wrote in a June 
11 Financial Times article that the currency, currently used by 15 of 
the EU's 27 members, has been "far from beneficial."

Meanwhile, Topolanek, 52, is moving the process of euro adoption 
forward while saying he wants to "wait and see" Slovakia's experience.

Havel Successor
Klaus took over as Czech head of state in 2003 from Vaclav Havel, the 
playwright who was jailed in communist Czechoslovakia. Havel turned 
the country from a Soviet satellite into a member of the North 
Atlantic Treaty Organization and paved the way for EU membership in 
2004.

In recent months, Klaus has belittled the EU presidency by calling it 
prestigious only for a small group of politicians. After the Czech 
Constitutional Court ruled last month that the Lisbon Treaty doesn't 
violate the country's constitution, Klaus accused judges of failing 
to read the document.

Klaus last month angered Ireland's leaders when he met with anti-
Lisbon Treaty campaigners; Foreign Minister Micheal Martin termed his 
visit an "inappropriate intervention in the context of a state 
visit." Irish voters rejected the pact in June, and the Irish 
government plans a second referendum next year.
This "really created an embarrassment for the Czech government," 
Techau said.

After EU leaders broke a deadlock over climate-change legislation at 
a Dec. 11-12 summit with concessions that eased costs on energy and 
manufacturing companies, Klaus termed it "comical" to work for such a 
deal amid the financial crisis. Topolanek welcomed the compromise.

Friedman and Thatcher
Klaus, an admirer of Milton Friedman and Margaret Thatcher, says 
"excessive state intervention" and "irresponsible increases of state 
expenditures" are behind the global financial crisis, according to an 
October commentary he wrote for Mlada Fronta Dnes newspaper.
The president's clash with Topolanek escalated when Klaus on Dec. 6 
quit their Civic Democratic Party, which he founded in 1991. Klaus 
said the party under Topolanek's leadership no longer reflects his 
views.

Topolanek insists that the EU is vital for the Czech Republic, given 
its Soviet-era past. "It's by far better" to "kiss the German 
chancellor than to hug the Russian bear," he wrote in a Mlada Fronta 
Dnes commentary on Nov. 20.

Money also plays a role. The Czech Republic is entitled to as much as 
26.7 billion euros ($37.3 billion) in aid from Brussels in the period 
of 2007 to 2013. That's almost a quarter of its annual economic output.

Klaus's split from Topolanek may prompt some lawmakers to abandon the 
party, making it harder for the premier to push his agenda in 
parliament. The government coalition controls just 96 out of 200 
parliament seats; the prime minister has managed to stay in power by 
putting together ad hoc majorities with the votes of independents.

"The Czechs have an even bigger problem than Klaus: Their government 
is so weak that the real question is whether it will last through the 
six-month EU presidency," Techau said.
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To contact the reporters on this story: Andrea Dudikova in Prague at 
adudikova@bloomberg.net; James M. Gomez at jagomez@bloomberg.net