I Don’t Dwell on the Past, We Must Fix the Present
14 ǀ POSITIV TECHNOLOGY
TECHNOLOGY | INTERVIEW
have the ability to shape European policy, and we have
done so in the past – sometimes poorly, but at other
times quite well.
One example: in the debate on electromobility,
the Czech Republic was a leader in pushing for
the relaxation of strict quotas on the production
of electric cars. Even though we once supported their
introduction, we have now managed to negotiate their
softening. So we do have influence – and we should
acknowledge that.
It’s not fair just to criticise Brussels. Ursula von der Leyen
herself admitted that the Commission needs to change
course in some areas. But she expects pressure from
the member states – and that is difficult, because there
is no unified view. Some countries would even tighten
green policies, despite the fact that it damages their
own industries. Spain is an example, where aggressive
green policies are weakening its carmakers and other
sectors.
Is the diversity of opinions among the member states
more of an obstacle or an advantage?
It cuts both ways. Diversity is valuable, but when you
need to set a common goal, it becomes a problem.
As the Confederation of Industry, we criticise EU
decisions such as the target to cut emissions by 90%
by 2040, because every country starts from a different
position.
Denmark has decided to practically give up on industry
and is betting on the pharmaceutical sector and wind
energy. The Czech Republic, however, is in a different
situation – in the middle of Europe, with limited
renewable resources but a strong industrial base that
supports not only us, but also the EU. A one-size-fits-all
goal is therefore extremely difficult to implement.
Let’s recall Mario Draghi’s report on Europe’s
competitiveness. It clearly stated that Europe has
a problem and must address it. Ursula von der Leyen
used it as the basis of her inaugural speech. Yet
the reality is that there are still countries which do not
see the situation as serious enough and have no will
to carry out essential, though necessary, changes.
One of the key factors of competitiveness is energy.
Does the Czech Republic have enough energy today,
and is it affordable?
Energy is currently one of the EU’s biggest problems.
Entrepreneurs and manufacturers pay two to three times more
for energy than in the US or Asia. And it doesn’t just apply
to traditional industries. For example, when producing a single
tile, energy accounts for up to 40% of costs – the same goes
for glassmaking, steelmaking or chemicals. But it also affects
modern sectors – data centres already consume enormous
amounts of energy, and will need even more in the future.
The problem has two dimensions:
1. Commodity price. Europe doesn’t have enough of its own
resources. We extract almost no gas, coal is being phased
out, and renewables have limits and require costly backup
systems.
2. Price structure. More than half of the bill consists of fees
and taxes – support for old solar installations, development
of the transmission grid or emission allowances. All of this
drives prices up.
The current model is unsustainable. Companies with high
energy consumption don’t use it because they waste it,
but because their production requires it. If we don’t change
the model, we will complete a process that is already
underway – the expulsion of manufacturing from Europe.
A typical example is pharmaceuticals – antibiotics or basic
chemical substances are no longer produced in Europe
because it isn’t profitable. We import them from Asia. But do
we really want to be that dependent? We need to completely
rethink the way energy prices are formed in Europe.
What should the future energy mix of the Czech Republic
look like in your view?
Already in 2015, the updated State Energy Policy made
it clear that we must rely on nuclear energy. That is the
foundation for the Czech Republic. Gas can serve
as a transitional source, and renewables only as a
supplement.
Coal will end very soon. That’s why it is crucial
that the government has decided to proceed with
the expansion of Dukovany. Temelín will inevitably have
to follow – and that is precisely why I welcome the fact
that serious debate is now starting about small modular
reactors. We are not a country with solar or wind
conditions like Spain or Denmark. The future of our
energy will rest on nuclear and gas – and I am convinced
The Confederaon of Industry is the largest business
associaon in the Czech Republic. It defend the interests
of a decisive part of Czech industry for a long term
and plays a key role in supporng domesc companies.
It is part of the social dialogue and acts as a consultaon
body for many legislave proposals.
In industry, the use of arcial
intelligence is incredible. In business,
I compare it to a new Klondike.