Wednesday 31 October 2012

Czech President Klaus on renewable energy, Europe and the welfare state

Klaus on the "profits" from renewable energy: This profit is not an outcome of those energy sources, but an outcome of government subsidies that are paid by taxpayers through high taxes and by consumers through high prices of energy, food and other commodities. The environmental impact is not positive either, even though everything was done supposedly for the sake of the environment. Hundreds of billions of euros, dollars and Czech crowns have been thrown away, not out of the window, but into the pockets of groups and movements that look “idealistic” on the surface, or into the pockets of those who profit from their activities.


Czech President Vaclav Klaus, who is soon to leave office after two terms, has for the last time spoken on the country's National Day to the Czech people and the diplomatic corps in Prague. As always, also these two addresses were out of the ordinary, containing the kind of wisdom that - sadly - is not to be found in the speeches of any of the other European heads of state or government (or for that matter anywhere else, for the time being):

Over the almost ten years that I have been the President of the Czech Republic I have been given to sign dozens if not hundreds of Bills that inevitably led to increasing our indebtedness and the power of institutions of all kinds. I have returned only a small part of those Bills back to the Chamber of Deputies for renegotiation, usually without any effect.
This was true both of the left-wing governments and of the governments with a prevalence of parties that were, or considered themselves to be, centre-right. The already excessive number of Acts, orders and regulations that harness our lives demotivates us and restricts our freedom. Besides, it does not express the true will of voters. The media help to promote the interests of small, yet powerful and often internationally interconnected pressure and lobby groups hiding under the banner of non-government organisations that have different names. An exemplary illustration of their success is what has been going on with the so called renewable sources of energy, when our legislation made it possible for those who had a better grasp of it than others or for those who may have even had the legislation tailor-made to their needs to gain unjustifiable profit.
This profit is not an outcome of those energy sources, but an outcome of government subsidies that are paid by taxpayers through high taxes and by consumers through high prices of energy, food and other commodities. The environmental impact is not positive either, even though everything was done supposedly for the sake of the environment. Hundreds of billions of euros, dollars and Czech crowns have been thrown away, not out of the window, but into the pockets of groups and movements that look “idealistic” on the surface, or into the pockets of those who profit from their activities.
Although austerity measures have recently been debated in our country almost on a daily basis, our debt still continues to increase. We cannot but clean up public finance and reduce the overall cost of the operation of the state at all levels and also curb our complex and expensive public administration. There are examples of best practice to draw on. When I received the President of the Slovenian Parliament here at the Prague Castle at the beginning of October, he told me that their newly formed government had reduced the number of Ministries from 19 to 12. Let’s attempt at something similar.
Even though it is politically extremely difficult, our welfare system needs to get back to realistic dimensions. This means to limit government mandatory expenditures predetermined by law, that is the money that merely passes through the budget without any government decision-making. Contemplating higher corporate and individual tax as a source of financing the mandatory expenditures is ineffective and it only makes the economic and financial problems deeper.
In his speech to the Czech people, Klaus had this to say about the "Nobel laureates" in Brussels - and the IPCC:

We must not be led to believe that somewhere far beyond the borders of our country there are thousands of eager supranational civil servants and politicians who think about nothing else but how to help us to be better-off, more fortunate and more carefree. We will not have anything save for the things we do ourselves, that we take care of, that we negotiate or fight for with a reasonable degree of confidence. We should wait neither for a modern Messiah nor for the European funds.
We must not be led to believe that our domestic policy is so bad that various non-democratic movements, civil “appeals” or “enlightened individuals” have to come to lead and govern our country. It is not possible without democratic politics.
In his speech to the foreign ambassadors, Klaus's message was clear:
I wish to see Europe as a community of democratic states. States which cooperate with each other, without any hegemon among them or above them. That is why I wish the countries to remain basic entities of our lives, retaining their governments with executive power and parliaments with legislative power, elected by their citizens and accountable to them. That is why I wish European integration to develop on intergovernmental basis in the direction which is and will be initiated and agreed upon by the states participating in it. The current European crisis should be seen as an opportunity for a fundamental systemic change of the European integration model on the one hand and of the European overregulated and paternalistic social and economic system on the other.
It will be a great loss to the Czech people, and free people everywhere, when Klaus leaves office. However, it is reassuring to know that he will continue to speak out about the most important issues in other fora.  

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