When: 14. 9. - 18. 9. 2009

PRESS RELEASE

International Chamber of Commerce in the Czech Republic (ICC Czech Republic) has organized, as a part of the whole week business program “ICC East-West Business Forum 2009”, an economic forum called “East-West Business Forum 2009” on 17^th September 2009 in Prague. This event, which was followed by Gala evening, was amongst others organized on the occasion of this year’s ICC in Paris 90^th Anniversary and ICC in the Czech Republic 10^th Anniversary. This forum was attended by 120 representatives of companies from various sectors, foreign participants, representatives of the embassies and state’s administration. As an outcome of this forum serves the following call, which reacts on recent economic development in the Czech Republic and in the whole world.

“East–West Business Forum 2009” organized by ICC Czech Republic calls:

1.   upon Governments to express their negative approach to the protectionist policy

The government protectionist measures, after going off, always leave deformed economy of certain state, thereby negatively influence fair economic competition and deform competitive environment.

“By concluding the Doha round, governments would clearly demonstrate that they take the fight against protectionist measures and effort to enliven international trade, whose decline will be the highest since the Second World War, seriously”, said Jean Rozwadowski, ICC Secretary General. In accordance with ICC Czech Republic 20 years after the Iron Curtain fall and ending of the Cold War, world economy is experiencing, after period of economic boom and fast growth of GDP, another breakdown represented by global economic crisis. “Individual states and international trade subjects try to hamper crisis by increased implementing of protectionists measures. At the same time, economic power is gradually shifting from West to East. Are we going to witness the trend of further bipolarization or, on the other hand, liberalization?”, says Jaromír Drábek    , Chairman of ICC Czech Republic.

2.   upon Czech legislators to responsibility

Czech legislators should in recent economic and political situation fasten the ratification of low-cost and growth supporting state budget.

“If this period will be assigned a name in the future, it will probably be a term “debt period”. Although our civilization is the richest in history, it is also the most in debted civilization - that is the paradox, which we can also see in case of state budget. It is evident that fiscal policy rules need to be changed in order to reach economic stability, in times of GDP growth the debts need to be paid off and deficits should be made occasionally, only in times of GDP decline. That is the only way to achieve needed stability,” said Tomáš Sedláček, Chief Macroeconomist Strategist, ČSOB. In the block dedicated to world economy 20 years after the bipolar system disintegration his colleague Michal Mejstřík added: “The government’s National Economic Council (NERV) was working hard to prepare expert recommendations for further directing of our state but unfortunately, some of our politicians are taking their work too ideologically to follow up with this work pragmatically.”

3.   To fully support the Czech export

State should gross up insurance capacities for the Export Guarantee and Insurance Corporation (EGAP) for this and next year, so the multiyear investments would not depreciate until acquiring current positions of Czech companies on foreign markets.

ICC Czech Republic reacted on critical lack of financial resources in insurance funds of Export Guarantee and Insurance Corporation (EGAP), which are, in accordance with ICC Czech Republic and Czech exporters, already in this year significantly restricting possibilities of Czech export.