Prime Minister Petr Nečas said on Friday he was not worried that the refusal of some EU states to join the block’s competitiveness pact agreed on in Brussels this week would create a two-track Europe. Mr. Nečas said that the EU was already a two-track alliance with or without a Pact for the Euro. One of the reasons why the Czech government refused to jump on the bandwagon is the possibility of the pact leading to tax-harmonization within the block. However the Czech government has not ruled out that the Czech Republic could join the pact at some point in the future.
The pact, drawn up under pressure from Germany and France, should enhance the eurozone’s competitiveness and ensure the sustainability of public finances in the member states.