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I have come here as a President of the free and democratic Czech Republic, of a country which – it is already more than 17 years ago – succeeded in getting rid of Communism, a country which quite rapidly, smoothly and without unnecessary additional costs overcame its past and transformed itself into a normally functioning parliamentary democracy and market economy, a country which is an integral part of the free world, member of NATO and the European Union, a good friend of the United States of America.
According to the theory of global warming, the temperature on earth increases due to the emissions of so-called greenhouse gases - namely carbon dioxide - into the atmosphere. According to this theory, increasingly higher concentration of these gases in the air pushes a greater quantity of the Earth’s heat back, which warms up the planet, the source of emissions of these gases being the burning of fossil fuels (coal, oil, natural gas) done by man, and the increasing temperature of the Earth may entail negative consequences for the nature as well as for the mankind. This is why burning of fossil fuels should allegedly be restricted by regulations. While the general opinion supports the hypothesis about harmful global warming resulting from burning of fossil fuels, hard data do not support beyond all doubt the assertion that global warming is indeed happening and what is more, the theory does not prove that burning fossil fuels causes harm to the nature.
For much of my life, which was spent in the communist era, I was just able to read about him and – what was more important – to read him. Very early, he became one of my heroes. I considered him to be one of the greatest thinkers and economists of the 20th Century. However, I did not dream that I would meet him or talk to him. When I had an opportunity to be at Cornell University in the spring of 1969, I took a Greyhound bus tour across the United States and spent twenty four hours in Chicago. I visited the University, walked around the campus and tried to figure out where Milton Friedman could be. Just to be here, in the vicinity of this great man, was thrilling.
Both in the United States and in Europe, the past 50 years of the European integration process is usually considered to be a success. To express a different view is politically incorrect, but – I am more than convinced – we must be "correct politically". The way of looking at the European integration process must be sharper and more serious than before, especially now, when we are at the crossroad and have to interrupt the creeping unification, socialization and bureaucratization of the European continent.
At that time I spoke mostly about our transition from communism to free society, from oppression, irrationality and inefficiency to freedom. It was still when the radical changes had been going on which is not the case now, in April 2006. We have already reached the stage of a normally functioning political system based on free competition of political parties and of an economic system based on private ownership and market economy.
It is my great pleasure to have the opportunity to speak to this distinguished community of business people on economic performance and perspectives of the Czech Republic within the European Union. The Czech Republic is the western part of what used to be Czechoslovakia until 1992. As it is apparent from its geographical position, the Czech Republic belongs to Europe, and joining the EU in 2004 was partly a symbolic step of returning back to the democratic nations and partly a pragmatic contract of giving up some powers and gaining better access to the EU markets and a share in European decision making.
Citizens of the European Union were recently invited by their leaders to use the so-called "reflection period" for presenting views on the further course of European integration. We should take this invitation seriously. The acceleration of integration during the last two decades has been realised by a gradual but systematic undermining of the former inter-governmental nature of relations between countries.
The people of the European Union, at least in France and The Netherlands, rejected the European constitution, which means the document cannot come into force and the current treaties establishing the EU institutions remain in place.
Tax reform, particularly the flat tax proposal, and advocating tax competition belong to principal issues of our think-tank. I will present you briefly our flat tax proposal, which is to be introduced by the ODS, the main right-wing opposition party, hopefully after the next general elections next year, and I will present you our case for maintaining tax competition in Europe, and in the World.
American liberal thinkers ("liberal" in the American sense of the word), such as Jeremy Rifkin, admire European society for its support of Kyoto agreements, its love of high taxes, its determination to push through the International Criminal Court, and its passion for subsidising "alternative" sources of energy.
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