Jaroslav Bžoch from ANO: The biggest risk for European competitiveness is the emissions allowance system
Jaroslav Bžoch is running in the European elections for the ANO party. He is a business executive and has been a member of the Czech Parliament since 2017.
The ANO party is campaigning in the European elections under the motto “Everything for Czechia”. Can you elaborate on that? What are you offering voters and what interests are you promising to defend?
“It is actually quite simple. When we say “Everything for Czechia” we mean that we will be fighting for our values and goals in the European Union. It is all about what we see in the European Commission and the way the European Union is treating some member states and the direction that has been set by the European Commission. We need a better Europe. If Europe is better, it will also be the best way for the Czech Republic.”
What are the hot priorities at this point that you feel have to be addressed?
“There are many issues with the Migration Pact, but for me it is mainly about what is not included.”
“The main priority for us is definitely the internal security of the EU, be it the conflicts around Europe or the Middle East. These conflicts are also connected to the problem of migration and then there is the Green Deal. Not the Green deal itself, but just parts of that legislation, like the package Fit for 55, and, last but not least, we want to be heard in the EU, which is connected to the right of veto.”
Let us look at some of those issues individually. You mentioned the right of veto. ANO has been very vocal about the need to maintain the right of veto in the areas where it still applies. Why do you feel that it is so important that it be maintained?
“I think that if all the member states can sit around the table, discuss many topics and finally find some conclusion and agree on compromises, it is a better message to the rest of the world that we are still connected, strongly together, and speak with one voice.”
Migration is a very divisive issue and it is one of the big topics in these elections. The Czech government abstained in the vote on the Migration Pact and the opposition parties have criticized it saying it contains “masked” quotas and many other problems. What is you take on the Migration Pact?
“I always say that what worries me the most is not what is included now, but what is not included. And that is better security on the borders, readmissions, because we don’t have the best cooperation with the countries where the migrants are coming from, not just the countries of origin, but also the transition countries, and none of that is addressed in the pact. We also need to focus on fighting the smugglers and organized crime and that is also not in the package. After more than 10 years – because the migrant crisis started in 2011 – we don’t have any tools how to stop this organized crime which is responsible for the biggest part of the problem with illegal migration. So there are many issues with the Migration Pact, but for me it is mainly about what is not included.”
Pundits talking about these elections say that the new make-up of the European Parliament will be decisive for the future of the Green Deal, which is another hotly debated issue. In this country people are concerned about the looming ban on combustion engines, since the Czech economy is driven by the automotive industry, the ban on gas boilers and farmers are protesting against restrictions linked to the Green Deal. How would you want to revise the Greed Deal. What do you feel is not viable?
“The first point I want to make is that the Green Deal as such – if we look at it from a broader view- is a good idea, because everyone wants to have a better environment. We know what’s happening to the planet, there is just one planet and we can’t move anywhere. And the goal to reduce emissions is something that almost everyone can agree on. The issues we have with it are not about keeping the water in the land, biodiversity, reforestation and stuff like that.
“The main issue concerns de-carbonization. In the last few years, the European Commission sent the member states a big amount of legislation linked to de-carbonization. But it is not just about the legislation itself, such as that on combustion engines, but it is also about a lot of regulations for companies, and a lot of paperwork and reporting that they are required to do. What I see as the biggest risk for European competitiveness is the emissions allowance system, because it is not working well. If you compare the US with 30 euros per emission and the EU with 80 to 100 euros per emission, it is obviously not working well for the productivity of companies and the EU industry.
“Also, when it comes to combustion engines there are still many things that don’t add up. If you look at the weight of electric cars, how much money European companies like Volkswagen, Skoda or BMW spent on building up that combustion engine, the productive one, and it’s not that bad on emissions etc. So if we are putting that much pressure on our companies then obviously we are losing competitiveness and that’s what worries me the most.
“If we choke our economy and our companies they will not have enough money to invest in new technologies.”
“If you look to the other side of the world, to the US or even China, they have the same goal for zero emissions, they have pushed it forward to 2060, but what they did is they put many investments into coal power plants. They built so many coal power plants they produce energy comparable to 20 Temelin power plants –but my point is – they are using that profit to invest in new technologies. And if we choke our economy and our companies they will not have enough money to invest in new technologies. And that is what we are seeing now that even China is far ahead of us with new technologies and renewables and the other stuff. But if the price of electricity is what it is, our companies are not competitive enough and some of them are already moving to the United States. That’s what worries me the most.”
Obviously Europe needs to increase its competitiveness against countries like the US and China. Apart from these aspects linked to the Green Deal, what would help Europe increase its competitiveness? Do you feel that it is overregulated?
“Yes, we are overregulated. When we talk to private companies, they usually say they don’t even know all the things that they are supposed to report on each month because there are so many duties and regulations now. What would help is for the business environment to be predictable, and now it is not. And not just because of the price of emissions allowances, but because it is a trading system that involves speculations. If the companies have no idea what will be the price of energy next month and what new regulations will emerge from the Green Deal then they can’t invest, because they don’t know where to invest, they don’t know if they have enough power to make their production work and that is what we feel is wrong.
“The first goal should be to put a price ceiling on emissions allowances, so we can say to the businesses, OK, that’s predictable, that’s what you need to know and that’s how it will be for a few years. So that we can help Europe’s competitiveness grow and not fall behind states like China or the United States. In our opinion, with the Green Deal we need to take a step back, look at the impact that it is having on competitiveness and then derate it. There are some clauses in the Fit for 55 package that enable this. And after two years we will see the results –if the combustion engine ban was a great idea or not – I don’t think it was the best idea – but if we review it after one, two or three years, then it could be too late.
“For example the German economy is not doing too well these days and if the ban has a bad impact on the German economy, then that’s crucial for us, because we depend mostly on the German economy. So I don’t think we have the time to review this in two or three years, because in the meantime countries such as China will forge ahead.”
What about subsidies? Because we have heard from Czech farmers that the distribution of subsidies is so unfair around Europe, that it would be better if there were no subsidies at all across the board. How do you feel about that?
“That’s obviously an issue. And agriculture is a part of the Green Deal that has not been concluded yet. That’s why we see all those protests, because they know it could have a very bad impact. And that’s also the point, because we can’t say to those people that from 2027 we are going to put emissions also on houses, on private cars and if you can’t afford it, we will find some funds and give you some money for that. But where? Money is asked of the member states and they need to contribute also if they want to get some finances from the EU. So I don’t think this is the way to go. The free trade must be more free, not overregulated. The system is wrong. If we look at agriculture, almost one quarter of the EU budget goes to agriculture. It used to be 70 percent, so it is now better, but it is still a huge amount of money going to agriculture. And if you talk to the farmers, they don’t even want that money, they just want to work on their farm with fewer regulations.”
What about your concept of self-sufficiency? Is that viable for Europe in the present day and age?
“We are still a big economy, but we can’t depend on someone bringing us batteries, someone else pharmaceuticals or even agricultural products. We need to work on self-sufficiency. This was also an issue when we were trying to de-carbonize the EU really fast. We exported all the technologies for example to China. They learnt well, but now we are in a stage where we can’t cut off from China –even in pharmacy. So we need to focus on what we can build, what we can grow, and even the brains that we have in the EU. And, of course, we need focus on better cooperation within the bloc.”
Looking at a future European Union – are you in favour of expansion? Would you prefer a closer-knit union or a looser alliance of states?
“The Balkan states are also important for us because of migration and the internal security of the EU. So the doors should be open, but on the other hand, there is no shortcut into the EU.”
“I always say that the doors to the European Union should be open. We have quite strict rules and procedures and if the states around us, Albania or North Macedonia, fulfill all those rules and close the chapters required, we should bring them into the EU. And, why do we need them? It is better for our economy, but also if we look at it from the security point of view. The Balkan states are also important for us because of migration and the internal security of the EU. So the doors should be open, but on the other hand, there is no shortcut into the EU.”
Looking at security –there is a war raging just 300 km from our eastern border. Czechia has been actively helping Ukraine since the start of the war, but now some parties, including ANO, say military support is not working and are pushing for peace talks. Can you explain why you think the EU should stop providing Ukraine with further military support?
“I must disagree with your question, because no one from ANO has ever said that we should stop supporting Ukraine –even militarily. No one has ever said that.”
So let me rephrase the question – what do you think is vital now for European security?
“Well, we are going to see what comes out of the peace conference in Switzerland, but we also have many good diplomats all around Europe and not just Europe, also the United States and other countries. And we should put all our efforts into talking about an armistice. Because every additional day when people are dying and the country’s infrastructure is being hit with rockets will make it harder for Ukraine to recover and rebuild when the conflict is over.
“No one from ANO has ever said that we should stop supporting Ukraine –even militarily. No one has ever said that.”
“So it is not about – stop supporting Ukraine – it is about having other plans of action, like putting all the other states around one negotiating table and saying we need to stop the fighting, we need at least an armistice. It is not easy to get peace, but at least to stop the fighting. Stop the fighting and people will stop dying. We are part of the UN and in the UN, if you look at the voting on resolutions against Russia, there are still many states who abstained or voted against, and those are the states at which we should aim all our diplomatic power- to bring them on our side. We should use diplomacy, and economic leverage if needed, to try to isolate Russia –to tell them - sit with us and deal with this, if not we will do everything we can to stop you.”
Why is it important that people go to the polls and vote in the European elections- and why should they vote for your party?
“This is an important question. I am an MP in the Czech Republic and I can see that about 70 percent of the legislation we are dealing with in our national parliament is coming from the European Union. So people should know that; that it is not like “Brussels is far from the Czech Republic”. We are Brussels. And we need to have people with common sense in the European Parliament who can do what is best not just for the Czech Republic but also for a better Europe.”
Jaroslav Bžoch is a Czech MP who serves as Vice-Chairman of the Foreign Affairs Committee and is also a member of the Committee on European Affairs in the Chamber of Deputies of the Parliament of the Czech Republic. Within the EU, he focuses mainly on migration and security. He has been actively involved in politics since 2011, when he became a member of the ANO party.
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