Ladies and gentlemen, while planning to participate in this forum, I was considering several topics that could be covered. However, the circumstances have made my choice for me. These days, the results of the UK referendum are our No. 1 topic everywhere.
We can scarcely go a day without hearing about the so called Brexit issue and for good reason – the decision of the British people to leave the UK, like it or not, marks the end of one era of European integration and the beginning of another. This schism was not born in a day; it is the result of a very special approach of the UK towards its EU Membership, which was, in recent years, complicated by circumstances such as the financial and migration crises.
Fast forward to June 2016 – after months of negotiations and an aggressive campaigning from both sides of the Brexit spectrum, Europe awoke to a future many of us did not truly expect to happen. June 24th marked a turning point. It is, perhaps, ironic that the very people who voted to leave the Union were the most surprised, or even shocked, at the result.
The result of the referendum shows that it is unwise to decide on empty promises and empty threats. The Brexit is and must be a wake-up call for all of us. The current situation makes it clear that a reform of the EU is needed. It is quite peculiar that this step, for which the UK has been calling for decades, we will take without the UK.
The referendum was a great lesson for us all, from governments, to businesses, and ordinary citizens. The Czech Republic of course wished for the UK to remain a part of the EU. We regret, but respect this decision. The UK had been our strategic partner, be it in historic ties or in promoting our interests at the EU level. Out of all Visegrad Group countries, CZ has always had the closest relations with the UK and therefore it will be missed. However, now we must go on as EU27.
We must view this moment as an opportunity to do better and be more pro-active when communicating the advantages of the European Union. I feel the EU needs a deeper reflection on its future heading. We must remember that we are first and foremost a union of Member States. It has to be the European Council and the Council that play the key role and give direction. The tendencies of the European Commission to be more and more political must be challenged and balanced out by Member States.
The crucial four freedoms
The Czech Republic stands ready to actively participate in the debate. For us, the membership in the EU remains the only viable option for going forward. We should not forget what we created together. The four freedoms of the single market applied across Europe are an extraordinary accomplishment. Historically speaking, being a young, post-communist Member State, we do not take the advantages of the single market for granted and thus appreciate them even more.
We have to continue to remind European citizens of these advantages which have become commonplace. This is not only the feeling of our government, but also of other countries of the Visegrad Group. Even though we differ on some issues, on the topic of Brexit we have been able to hold a common position both throughout the negotiations and following the referendum. We have learned to leverage the unity of the Visegrad Group countries to promote our goals on the European level.
Even though the Czech Republic no longer holds the presidency of the Visegrad Group, I believe Poland will continue the tradition of common approaches to key issues. It is not an easy task, especially with the discussion surrounding Brexit speeding up.
The new British PM, Theresa May, has been named two months ahead of schedule. Cameron left the formal notification up to her. In the past, she has indicated that the notification could happen by the end of the year. However, the Czech Republic and other Member States feel that the notification should come no later than October this year. (EUCO 28) The period of uncertainty should not be prolonged any longer. The formal deadline to reach an agreement on the terms of exit will be 2 years from the day of notification. However, I feel that the deadline is too broad. The basic terms must be agreed upon within 6-9 months. We can discuss less important details later.
It would be too risky for the UK to gamble on prolonging the negotiation period. When it comes to the issue of future relations with the UK as a third country, it must be the UK that comes with the first proposals. We have seen statements regarding a possibility for negotiations before notification and the possibility for the UK to gain access to the internal market without having to respect the free movement of persons.
On both accounts the EU has made it absolutely clear that such an approach would not be possible. All EU Member States agreed on the principle of “no negotiation without notification” and the indivisibility of the Four Freedoms. The Czech Republic and the countries of the Visegrad Group fully support this approach. The free movement of persons is of key interest to us, the nations of Central Europe.
The role of the convergence
We are finally free of walls and part of an inter-connected Europe. Under no circumstance can we allow new barriers to rise. We are faced with the rise of euroscepticism and populism that seek to undermine this vision of a united Europe. Our core challenge is to defend and enhance our co-operation in fields where we can find a common ground. We must learn from this situation and look for ways to bring the EU closer to its people and ensure growth and employment and internal and external security.
We can do so through the convergence of the “new” Member States towards the “old”. Many of the problems we face today are caused by differences in standards of living and wages. We should focus on enhancing liberal trade, investments and innovation, proper functioning of the single market, and finishing the digital market. UK had always been a strong partner in these fields, but we can move forward as EU27. EU also needs a stable and fully functioning eurozone.
Therefore the euro area still needs to search for its optimal mechanisms of coordination and effective framework based on rules which are applied equally across all its Member States. The work on the EMU deepening will continue on the basis of the Five Presidents‘ Report from June 2015. At the same time, even in this agenda, we need to look at possible ways to materialize the benefits for European citizens.
Therefore, the issue of social dimension of the EMU should be carefully elaborated. Soon we will discuss modalities of the so-called European Pillar of Social Rights. Non-eurozone countries, as the CZ, require their full involvement in all relevant discussions on EMU. In this issue, the UK had also been our strong ally and advocate for interests of non-euro countries. Without the UK, we have to ensure the two groups of Member States do not get too far from each other (which is, to certain extent, already happening).
I am sure that, in the future, CZ will be a part of the euro area. We already want to participate in shaping it today. Regardless of Brexit, we have to continue in all the important projects which are currently on the way, namely the Banking Union, which needs to become fully-fledged, and the Capital Markets Union, where the first legislative measures are being negotiated. I am sure we will be successful in shaping the future cooperation in the EU27 format and that the UK will remain our partner even after our “divorce”.
Projev na snídani s Kreab, Brusel 19. července 2016
