Europe, plagued by the debt crisis, is no longer a role model for the world and refuses to accept this as a fact, Czech President Vaclav Klaus said at a business conference on Friday. "The situation in the world is changing, with Europe relatively lagging behind formerly non-existent economic centres, with economic dynamics moving outside Europe, and with the self-confidence of these fast-growing countries," he said, pointing to China, India and Brazil.
"Europe is reluctant to accept this, and it refuses to admit this in public, pretending it is a role model for the rest of the world, which is no longer true," added Klaus, a former liberal economist and an ardent eurosceptic. He complained the continent was running short of breath and performance, lacking a longer-term concept, consuming rather than investing, running into debt rather than saving, resting rather than working.
"The eurozone debt crisis is a logical outcome of Europe's development in recent years, and it is only the proverbial tips of the iceberg ... but we all know the Titanic usually crashes into the part that's hidden," Klaus added. He noted that not only the euro but also the European integration concept and hence the whole EU model were in a crisis. "The eurozone is the weakest link, so no wonder this is where the biggest visible problem has occurred," he said, calling the euro "a problem."
Klaus also rejected the notion of a global crisis under way. "Wherever I go, they tell me this is no global crisis: 'You have a crisis in Europe and the United States, we don't know about any crisis.' The finance minister of Senegal was the last one to tell me that," Klaus said.
"But I'm still optimistic in that this won't result in a run on banks. After all, consumers have almost nowhere to run, the dollar is no better off," he added. The Czech Republic, clinging to its koruna currency, is obliged to join the euro under its 2004 EU entry terms. But there is no deadline for the move and Prague has repeatedly said it is not planning to join in the near future, given the eurozone's ongoing debt crisis.
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