Financially illiterate Fiala. Šichtařová did not make the view of the program together

Petr Fiala and together promise voters a vision when the Czech Republic will host the European Football Championship. But the organizing for the years 2028 and 2032 is already intended and all other championships are already in the next government horizon. In addition, we do not have sufficiently large stadiums for such a big football event, we would have to build them. How do you perceive this election promise?

As an economist, I am very skeptical about the usual claims that organizing such sporting events is economically worthwhile. Certainly, spectators will come, but at the same time it is necessary to accommodate athletes, modernize sports infrastructure – and this is billions of investments. I think that organizing these events is usually promoted by lobbyists who represent investors. And these investors suspect that they could have profits from state contracts for the construction of sports grounds and the like. So I do not support these megalomaniacal events from a financial perspective. When we remember the state of our public finances, I am sure that we have priorities elsewhere than in the organization of the Football World Championship. It would rather invest in healthcare…

“We will accept the euro when it is economically and politically advantageous,” promises the coalition together in the program called Freedom and Prosperity for future generations. How do you rate it?

So if we were to accept the euro when it was economically advantageous, I would be absolutely calm, because in my life it would not be. Economists and academics from state institutions as well as commercial institutions state the following consequences of potential euro acceptance:

• A short -term increase in inflation (through price adjustments immediately after receiving)

• Long -term increase in inflation in the decade horizon (through the cancellation of the exchange rate convergence channel and a reduction in interest rates)

• Slowing down GDP growth (through the breakdown of autonomous monetary policy)

• Loss of Earth’s Competitiveness (through pressure to change the structure of the economy)

• Reducing the potential of GDP (through a reduction in competitiveness)

• Increase in debt (through an artificially forced reduction in financing costs)

• Liability for the problems of the believing finance of other euro area members

And I say that the adoption of the euro naively pretends to enter the VIP club. When deciding on its acceptance, many euro supporters take into account mere emotions. However, the adoption of the euro is not a matter of emotion – this is a highly professional problem. Just as a neurosurgeon in the brain surgery must not follow mere impressions and neglect scientific facts, so even the adoption of the euro should not be decided by populism and naive emotions, but economic facts. And the adoption of the euro clearly disqualifies from rational considerations as a step permanently damaging the economic structure and competitiveness of the Czech Republic.

He wants to give at least 3 % of GDP to defense by 2030. Here, too, I will ask you for a comment.

This testifies to financial illiteracy. The difference between a financially illiterate and a literate person is as follows: the first one will plan how much money he will spend, regardless of his income. The other one calculates how much he earns and how much he has for spending. He then sets his priorities. And then he determines how much he can afford to spend on the top of the ranking. So on purpose, which of the two approaches fulfills the approach together?

Together he wants to ensure that after 2035 she was on sale of car with internal combustion engines. Recently, however, they have enforced FIT FOR 55 and reduce the same engines. How do you understand it?

I understand that they are working together with the style of “where the wind, the cloak”. Now he’s before the elections, so they say they want to keep the burners. As soon as it is after the elections, they will again bow to Brussels as in the past. Definition of foolishness is not to get out of the past. I am not crazy, so I know that a sudden seizure of sympathy for internal combustion engines can not believe.

The introduction of allowances for heating buildings or transport will increase the price of gasoline, diesel or gas price so much that the total inflation will increase by almost a percentage point. Will the main election theme becomes of permits?

I hope it happens! Because for example, this is an essential topic that has driven me into politics – along with other similar speeches of Green Deal, including a ban on internal combustion engines and others. The problem is much greater than most people suspect. And the price increase, which would result from permits, will also be much more pronounced than most people imagine today. So it really deserves to be the main election topic – for the future, allowances would become the main engine of price increases in food, energy and housing!

The Czech Banking Association improved this year’s GDP growth to 2.1 percent of 1.7 percent of May. This is due to a stronger export and a weaker impact of Trump’s cells. Is there a reason for optimism?

Not much. I will explain it to you this way: according to statistical numbers in recent months, it is possible to observe not only in our country, but also in Germany a slight acceleration of growth. This is true, but it is necessary to add: Growth would be much stronger if entrepreneurs were not tied up by the hands of increasingly harder regulation, compulsory “green” investments and nonsensical bureaucracy. If the energy market was not shot by political interventions, we would not have to rejoice in every tenth of the extra point.

Current figures are therefore not a victory of politicians, but proof of the toughness of companies that, even in the environment of constant obstacles, can generate demand, look for new markets and fulfill orders. While the state apparatus is growing, it swells and redistributes, real growth is created by entrepreneurs, tradesmen and industrial companies.

Looking at the euro area as a whole, it is clear that the economy rises, but the export remains weak. This is logical – hard to compete with the dynamic regions of the world if Europe places obstacles to itself. In Asia or America, companies do not have to face a new EU directive every day, which dictates them, how to produce, how many emissions they can release and what form to fill in to be able to do business at all.

In Germany and the entire euro area, there is a chance for turnover not thanks to economic policy, but economic policy despite. That is why we can only celebrate cosmetic improvements in statistics, while competition in global markets will continue to pass at lightning speed.