Nečas: We support the European Union common market

"There was no way we could avoid the situation in Cyprus, because of its impact on the whole of the Eurozone. We agreed on the fact that responsible fiscal policies are key for governments' behaviour", said Prime Minister Nečas after the meeting.

In his discussion with the European Commission Chairman the Prime Minister stressed that the right way to higher levels of employment is the growth of competitiveness, not increasing the deficit and artificial funnelling of resources into the economy. Of prime importance is completion of work on the common market: "The Czech Republic is one of those countries which are the quickest in implementing the various regulations on the internal market; in this the European Commission has the full support of the Czech government", he added.

Collaboration with the European Commission also involves cohesion policy, in which the Czech Republic wishes to achieve a transparent and efficient system for funding. Other topics at the discussion included financial transaction taxes. According to Prime Minister Nečas, on this issue the Czech Republic is one of the countries taking a sceptical and cautious approach. "We are afraid that this type of taxation might damage the internal market. We also fear the impact on countries which are not involved in this collaboration", the Prime Minister stated.

And not least, the Czech Republic considers as satisfactory the compromise reached on unified banking supervision, where the Czech Republic had had concerns mainly about the relationship between parent banks and their subsidiaries.

Barroso: stability of the Eurozone is in our common interest

European Commission Chairman José Manuel Barroso expressed his appreciation of the discussion and emphasised the need to cooperate with European institutions and member states, which is important in his view in view of the rapid political and economic developments in Europe.

"I welcome constructive discussion, it is in the interest of all of us to secure stability for the Eurozone, a common market and the unity of the European Union. Deepening of economic and monetary union are the main current challenges", José Barroso stated.

He also praised the Czech government for its progress in implementing the common market, which the member states of the European Union are trying to set up as the motor of growth. According to Barroso the Union has now gone through the worst of the recession. The developments in Cyprus now strengthen determination to reform the financial sector. The European Union therefore wishes to create a unified supervision system for the Eurozone, followed by a unified resolution mechanism.

"Once there is a functioning banking union, then the management of recessions such as the present one will be simpler. We will secure greater financial stability within Europe and with it the confidence which is the key to investment and economic growth", said Barroso.

Our task is to maintain a unified European Union

On the fears expressed by the Czech Republic Barroso noted that the European Commission is taking them into account when seeking practical solutions, so that all member states know that their interests are respected.

In his opinion each member state is responsible for implementing its own reforms. In this context he said that he welcomes the Czech Republic's constructive approach to supporting competitiveness. "I congratulate Prime Minister Nečas on the significant progress which has been made in consolidating the public finances over the last two years", the European Commission Chairman remarked.