PM: Gov't to seek compromise on fiscal union

Prague, Feb 6 (CTK) - Czech Prime Minister Petr Necas expects the government parties' representatives to hold a number of meetings in the period to come to seek a coalition compromise on the Czech position on the EU's fiscal responsibility pact, Necas told journalists yesterday.

Necas (Civic Democrats, ODS) said he will meet Foreign Minister Karel Schwarzenberg (TOP 09) on Tuesday on the sidelines of the Chamber of Deputies session.

"No special dramatic meeting will take place. I ask [the media] not to mythicise this, not to present it as a milestone," Necas said.

At the EU summit a week ago, Necas refused to join the planned EU pact on behalf of Prague. This met with sharp criticism of Schwarzenberg, who said on departure for a visit to Israel last Tuesday Necas has harmed the Czech Republic's interests.

Necas reacted saying that Schwarzenberg has worked poorly and little as a minister and spends too much time abroad.

Beyond the Necas-Schwarzenberg emotive clash, which Necas said he would not like to comment on any more, there is a deeper controversy between the ODS and TOP 09 over Czech accession to the EU fiscal pact and the way of its ratification in the Czech Republic.

The ODS, along with its other junior government partner, Public Affairs (VV), says the fiscal pact changes the basic EU law, transfers some Czech powers to Brussels and therefore people should decide on its adoption in a referendum.

Furthermore, Necas says the relevant treaty is binding on the euro zone states only, not on the Czech Republic, which is why Prague need not sign it now.

Schwarzenberg's TOP 09, however, says the Czech Republic should sign the treaty along with other EU states, except for Britain that has refused to join it, in March.

Prague's rejection of the pact makes the Czech position in the EU incomprehensible and may oust the Czechs from the main European stream, says Schwarzenberg.

"There are tens of hours of negotiations, search for a coalition consensus on the issue ahead of us," Necas said yesterday.

His spokesman Jan Osuch said Necas and Schwarzenberg will meet on Tuesday for the first time after the latter's return from abroad. "I expect them only to make an appointment for later this week," Osuch said.