Prague, July 8 (CTK) – The impact of Greece’s leaving the euro zone would be primarily political, also due to Greece’s unclear position to the crisis in Ukraine, Czech Prime Minister Bohuslav Sobotka (Social Democrats, CSSD) said Wednesday.
Greece’s departure from the euro zone is a realistic alternative, Sobotka said.
Now it will be important what proposals will be submitted by Greek representatives to the euro zone, Sobotka said.
“As I noticed Wednesday, the proud Greeks have asked again for money from the EU,” Sobotka said.
“They should present a plan of reform and of the changes they want to make, how they want to improve tax collection, how to fight corruption, how to stabilise basic functions of the state, in which way they want to manage their economy,” he added.
Turning to the speech delivered by Greek Prime Minister Alexis Tsipras in the European Parliament Wednesday, Sobotka said Greece could hardly criticise the euro zone for any lack of solidarity.
Sobotka said as Greece’s proportion in the EU economy was small, the impact of its departure from the euro zone would be indirect and primarily political.
This primarily means that Greece would be still a member of the EU and NATO and it could influence their decision-making, Sobotka said.
He pointed out Greece’s unclear position to the developments in Ukraine.
“The direct economic impact on our banks would be negligible, the impact on our companies small, but as Greece’s departure would certainly affect the exchange rate of the euro, it would also affect the exchange rate of the crown,” he added.
The latest developments in Greece will not have a negative impact on the Czech economy and the European Union in general, Czech Finance Minister Andrej Babis (ANO) told journalists in the Chamber of Deputies Wednesday.
“The Czech crown is getting stronger and the crisis does not actually concern us. I can see no negative influence on our economy and on the EU in general,” he said.
Babis said the possible exit of Greece from the euro zone would be no tragedy.
“As Greece has never belonged to the euro zone, it should leave it, but this of course means that the debts are irrecoverable because it is impossible to pay a debt of 313 billion euros,” he said.
Babis said the EU representatives only have to admit that they made a mistake in relation to Greece and to include the debts in the budgets of the countries that are the creditors.
The Greek developments did not stir the financial markets because the debts concern states and tax payers, he added.
Opposition Civic Democrat (ODS) leader Petr Fiala said the Greek debt crisis had no good solution, just bad and even worse solutions.
“An even worse solution is a senseless effort to keep Greece in the euro zone at any cost,” he said.
“Only real reforms of the state administration and economy and its own currency can bring growth and prosperity back to Greece,” Fiala said.
Czech Foreign Minister Lubomir Zaoralek (CSSD) is of the opposite view.
If forced to leave the euro zone, Greece would be threatened with chaos and uncontrolled developments. This will benefit neither the Greeks nor Europe, Zaoralek said.
He said Greece’s remaining in the euro zone is preferred by most of the euro zone members.
“Most countries agreed Wednesday that it is necessary to keep Greece in the euro zone. However, this is impossible without Greece coming up with an appropriate idea and plan,” Zaoralek said.
“There is nothing to speculate about. It is Greece’s turn now,” he added.
A majority of Greeks rejected the terms for new financial aid set by the euro zone in a referendum held on Sunday. The country is threatened with the exit from the euro zone. EU representatives will discuss Greece on Sunday.
