Klaus: ČR more stable than other EU states

Prague, Jan 1 (CTK) - The Czech Republic is more stable than some EU countries, but people should fundamentally change their attitudes and not raise their demands as long as the economy does now allow this, President Vaclav Klaus said in his New Year's Day speech yesterday.

He said this year will not be among the easiest.

Klaus also said the country needs further quick reforms in the political, economic and welfare systems.

"Unless we want to live and see really painful consequences, we must carry out these changes as quickly as possible. Our state debt confirms this clearly," Klaus said.

He said "ten years ago it stood at 345 billion crowns, now it is more than four times as high. Do we realise this at all?" Klaus asked.

He said not only laws on health care, education, the pension or welfare systems, but all "our attitudes" must change.

"Not only in Europe, but also in this country is it accepted as a matter of course that people's demands rise without any connection with the development of the economy and irrespective of whether we have means for these pay and welfare demands," Klaus said.

"Even though people do not like to hear this, politicians must persuade them of the necessity to abandon this comfortable, but destructive type of thinking as quickly as possible. This is the basis from which all things develop," Klaus said.

He said the country is now fundamentally politically and economically stable, it does not stand before a bankruptcy, banks are not going bankrupt, there are no violent demonstrations, unemployment is below the EU average, the state debt is one of the lowest in Europe.

However, it cannot be ruled out that Europe will fall into recession that would also hit the Czech Republic.

"I would be glad if I were mistaken in this rather pessimistic estimate just as I was mistaken in my optimistic estimate last year. The 12th year of the 21st century will not probably be among the easiest," Klaus said.

Last year economic growth was slowing down, it may have already stopped completely, Klaus said.

"We have not created too many growth impulses at home and the consequences of the outer unrest, particularly the debt crisis and the weak growth in Europe were bigger than we thought. The coping with the huge debts of certain European states continues to be pushed away to the distant future," Klaus said.

($19.940 crowns)