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Czech president warns against protectionism in wake of Sarkozy statement

Other News Materials 10 February 2009 03:18 (UTC +04:00)

Czech President Vaclav Klaus on Monday warned against some countries' tendency to embrace protectionism amid the ongoing global financial crisis, saying it is not desirable and must be averted.

"It is a huge present-day task to avert this (the rise of protectionism)," Klaus said after a meeting with his Slovak counterpart Ivan Gasparovic. "I am glad to hear the Czech government saying that it considers protectionism unacceptable."

The president's remarks came on the heels of French President Nicolas Sarkozy's criticism last week on French carmakers for having transferred production to the Czech Republic, Xinhua reported.

"It is justifiable if a factory of Renault is built in India so that Renault cars may be sold to the Indians. But is not justifiable if a factory of a certain producer, without citing anyone, is built in the Czech Republic and its cars are sold in France," Sarkozy said on French television last week. His words immediately provoked an outcry in the Czech Republic, where French carmaker PSA Peugeot Citroen has a factory in Kolin, central Bohemia.

Klaus said he feels sad about some foreign politicians' attempt to restrict domestic firms' expansion abroad to protect their own economies during the current crisis, but refused to comment directly on Sarkozy's statement.

"I've vowed not to comment on any of President Sarkozy's statements as it would unnecessarily provoke reciprocal [reaction], " Klaus said. The Czech Republic took over the European Union's rotating presidency from France this year.

The Slovak president also said that restriction of companies in one country would arouse similar restriction in another country, which is undesirable.

Meanwhile, Czech Prime Minister Mirek Topolanek sharply criticized Sarkozy's statement in an interview with the Hospodarske Noviny newspaper published on Monday, adding that the French leader's comments have threatened the ratification of the Lisbon Treaty in the Czech Republic.

Topolanek also discussed the issue with President Gasparovic during their meeting on Monday, the government press department said.

"We've discussed the fact that the necessary feeling of solidarity (in the EU) has been somewhat diminishing. That is why we want to support projects that will preserve it. The building of the statehood and identity (by each of the EU countries) should not deprive us of the advantages we used to enjoy jointly," the press department quoted Topolanek as saying.

"I personally consider the spirit of protectionism the principle that could extend the whole crisis and that would hamper the EU's internal unity. In this point I and the Slovak president understand each other," Topolanek said.

PSA Peugeot Citroen had said that it has no plan to move its factory out of the Czech Republic. French newspaper Le Monde also reported on Monday that Sarkozy has already given up his effort to make the carmaker shift its production back to France.

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