Speech of the Prime Minister on the Occasion of the Constitution of the National Economic Council of the Government

The Czech Republic as well as the whole world is awaiting an uneasy period. The financial crisis spilled over the economic crisis which caused drop of the economic growth and demand. The main concern of the government in such a situation is to do its utmost to protect citizens from impacts of the crisis; the government did not cause the crisis, however its duty is to solve the situation.

Unlike other countries and thanks to the government's reforms, the Czech Republic has not faced direct impacts of the crisis. Our economic growth in the last year was very high, more than four percent. Nevertheless, the recession, in particular in number of European countries, will have unfavourable impact on our country as well. The drop of demand will cause decrease of the economic growth and it will endanger the Czech exports and job opportunities.

The government, thanks to good economic results in the last year, created sufficient financial cushion, so that it could face impacts of the financial crisis. In case of need we are able to mobilize up to 80 billion crowns to help the Czech economy without excessive growth of the national debt. The reform also strengthened the financial stability of the country and brought tools which restricted wastefulness and supported economic activities. The government will go on reduction unnecessary expenditures and it will give financial means where it is the most effective, mainly in order to support exports, small and medium size enterprises and infrastructure construction. We will continue the reduction of unnecessary restrictions in business as well as our fight against bureaucracy.

The government is also aware of the fact that in such a complicated situation it is necessary to join forces and to fight against the crisis together with independent economists and with the opposition. That is why I decided to constitute the National Economic Council of the Government as my advisory body, which would analyse the situation and give recommendations concerning relevant measures. I offered posts in this council widely regarded experts of various branches of economy and finances. I am pleased they accepted my offer and I believe that this team is a strong and reputable group which will be my support and which will be a guarantee of trust recovery for citizens.

Just the crisis of trust is the greatest danger for us at present. The Czech economy is robust thanks to the government's reforms. If we act together, cautiously and without unnecessary politicking, we have good chance to pass this uneasy period. The important thing is to be cool, to have trust in the future and strong nerves.

Mirek Topolánek