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The Social Democratic Party has distanced itself from a statement made by party member and MEP Richard Falbr who publicly thanked the Czech prime minister for not signing the EU’s fiscal treaty. Mr. Falbr was the only Social Democrat to openly disagree with his party’s position on the issue, noting that the fiscal treaty had been rejected by the European Trade Union Confederation and that as a former chairman of the Bohemian and Moravian Trade Union Confederation he understood the reasons for that and felt the need to state his position.

The Czech Republic on Friday joined Great Britain in refusing to sign the EU’s fiscal treaty aimed at enforcing budget discipline within the block. The Czech prime minister who met with his British counterpart David Cameron ahead of the EU summit, made it clear that in its present form the treaty was disadvantageous for the Czech Republic in enforcing conditions and fines without allowing the country, which in not a eurozone member, to actively participate in all euro zone summits. He moreover stressed that he considered it far more important to deepen the common market and increase the competitiveness of the 27-member block. The prime minister’s decision to stay out of the treaty has divided the Czech political scene with the coalition TOP 09 and the opposition Social Democrats strongly opposing the move. Foreign Minister Karel Schwarzenberg, who is the head of TOP 09, made it clear at the summit he was deeply dissatisfied with the Czech stand.

Slovak Prime Minister Iveta Radičová has voiced harsh criticism of the Czech Republic’s decision to stay out of the fiscal compact. Mrs. Radičová said she had urged the Czech delegation to reconsider its decision ahead of the signing noting that in view of how the sister states had vied to get EU membership it seemed dishonourable to back out at the first sign of trouble. The Slovak prime minister said that the Czech stance was purely political and lacked any rational background.

Twenty-five of 27 EU member states signed the European Union’s new fiscal compact in Brussels on Friday - but the Czechs were not among them. Prime Minister Petr Nečas together with British Prime Minister David Cameron have opted not to support the treaty, which is aimed at enforcing budget discipline in the union and prevent meltdowns within the eurozone as was seen with Greece.

In related news, Mr. Nečas said ahead of the start of the summit that the fiscal compact is less important than a stronger European effort to create a single market, which would increase the EU’s ability to compete. He added that he would discuss these two points at the summit. The Czech Republic has joined an initiative of over ten countries aimed at supporting a single market, which the Czech prime minister has said is “the only way to boost the European economy.”

Czech Prime Minister Petr Nečas met with his British counterpart on Thursday in London to discuss a joint stance ahead of the EU summit that started in Brussels on Thursday evening. The two prime ministers travelled to Brussels together by train. Both countries will be pushing for an effort to further deepen the common market at the summit, where 25 out of 27 EU countries will sign a new fiscal compact on Friday. The United Kingdom and the Czech Republic are the only two member states to not sign the compact, which is designed to stabilize the euro and bind governments towards fiscal responsibility. However, Mr. Nečas noted that the door remained open for future Czech agreement and has denied that not signing the compact at this point would isolate his country.

In Business News: Fuel prices reach new highs at Czech gas pumps; the Czech crown weakens mid-week; zero-percent growth is projected for the Czech Republic in 2012; food giant Hamé says it will mend its ways.

Foreign Minister Karel Schwarzenberg has announced that his party, coalition member TOP 09, would be pushing for a Czech signature of the EU’s fiscal compact. Mr. Schwarzenberg said that he would try to convince Prime Minister Petr Nečas to change his stand on the issue even after the upcoming EU summit, where the compact is expected to be signed by 25 of the union’s 27 members. According to the Czech news agency ČTK, sources close to the Czech prime minister are expecting that Mr. Nečas will stick to his previous refusal to join the fiscal compact, aimed at establishing tighter fiscal discipline across the EU, at the March 1 summit in Brussels. Ahead of the summit, the Czech government will be discussing the issue. The Czech Republic and the EU were the only two members of the EU to not sign the compact.

UK Prime Minister David Cameron will be joined by his Czech counterpart Petr Nečas on March 1st for a Eurotunnel train trip from London to Brussels. The destination will be an upcoming EU summit; Nečas is set to visit London for a memorial event connected to the late president Václav Havel on February 29th. The UK and Czech Republic were recently the only holdouts in a proposed pan-EU fiscal discipline pact, primarily designed to aid eurozone nations.

The Czech Republic and Britain, who both decided to stay out of the EU’s fiscal discipline pact, are preparing to launch an initiative of their own: one aimed at deepening the common market. Prague says that this is the real key to economic growth at a time when the alliance needs to boost its flagging economy.