Press Advisories

24. 3. 2014 22:36

Czech Cabinet Approves the Fiscal Compact as part of Adjusting Its EU Policy

: Before the Cabinet meeting on 24 March 2014.

At a meeting held on Monday 24 March 2014, the Cabinet of Premier Bohuslav Sobotka approved a proposal of the ministers of finance and foreign affairs to accede to the Treaty on Stability, Coordination, and Governance in the Economic and Monetary Union in a move to fulfill one of the Cabinet's commitments undertaken in its policy statement.

Earlier today, the Cabinet followed up on a debate about the Fiscal Compact commenced on 19 February 2014, which was interrupted to allow the accession to the treaty to be discussed on a tripartite basis. The Cabinet also asked the Government Legislative Council to prepare an analysis clarifying the legal aspects of the ratification process.

Acceding to the Fiscal Compact would have considerable and immediate benefits for the Czech Republic by allowing it to take part in selected Eurozone summits. The move sends a clear signal that the Czech government has shifted its EU policy. Not being a Eurozone member, the Czech Republic will only become subject to the treaty when it adopts the euro.

The Czech Republic's internal ratification process requires that accession to the Fiscal Compact be ratified by a constitutional majority of both chambers of the Czech Parliament. Subsequently, the ratification must be endorsed by the president.

The Treaty on Stability, Coordination, and Governance in the Economic and Monetary Union was signed by 25 EU Member States on 2 March 2012 and took effect on 1 January 2013. Apart from the Czech Republic, the treaty has not been ratified by Croatia and the United Kingdom.

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