CZECH REPUBLIC
In the Heart of Europe


V.I.P. INTERVIEWS
H.E. MILAN ŠIMONOVSKY
Interview with
H.E. MILAN ŠIMONOVSKY


Minister of Transport & Communications
Prague, 26/09/2002


An efficient transportation system and a good transport infrastructure are very important for sustaining a country's economic development. What is your assessment of the transportation sector and the transport infrastructure in your country?
The network in our country is very extensive, but the quality remains below the quality in Western European countries. I believe it is positive that the railway system is larger in the Czech Republic than in most of the Western European countries, around 14% more per square kilometer. The municipal transport system is also very good and there is a good chance that it will have a large share of the overall transport system.

Because of the long-term isolation of our country, our infrastructure is not yet well connected with other countries as far as railways and roads are concerned and this remains a major handicap for us. We currently try to build as much as our budget allows us and hope that we will have a better network with good connections within ten years. We try to make the transport system as safe and fast as possible. We also strive to comply with the European corridors.

What will be your main actions to improve this during the next two years?

We are currently building four motorways and within two years motorways D8 and D5, which is on the German border, should be finished. We are also building two railway corridors and we would like these corridors to be functioning fully within the European transport system. We also hope that the new terminal at Prague airport will be built within two years. We have many goals, but as you asked about the next two years, we are trying to be realistic.

The telecommunication sector is undergoing a liberalization process. How are you adapting the regulations to this liberalization? And how do you perceive the introduction of competition on this market?

The Czech Republic has decided to use a method of step by step liberalization. We have a legal framework, which needs to be discussed and adapted to the European law, and since 2001, the fixed line providers have to allow access to their lines by other providers. There are also other regulations concerning the operator with the biggest share in the market to prevent him from being too dominant. This amendment to the telecommunications law should be passed this year and another amendment will be passed next year. We want to totally comply with the EU regulations and have a fully liberated market with the needed laws.

The Czech Republic is now in the final stage of its accession negotiations. How will this affect the telecommunications sector?

This is a fundamental question because the telecommunications market is going through important changes, even in Western European countries, and we expect some turbulences on the Czech market as well. This is why we have opted for a step by step liberalization as we see it as a good environment, which supports competition, and we are working with strong partners from the EU. I believe that competition is strong enough and I do not expect new operators to be able to succeed on the Czech market. When I look at the European telecommunications market, I believe that we may have more surprises.
Liberalization of the market also means to privatize Cesky Telecom. What are your expectations for this? And do you believe that this could bring a new player on the market?
We have decided to privatize the state share in Cesky Telecom, which already has a strategic partner. We expect the new owner to restructure the company and introduce new services, and apart from voice services they will concentrate on other services and hopefully this segment will grow better and larger.

Are these different developments bringing the Czech Republic on the way to becoming an information society? And how will this further help to develop the Czech economy?

I believe that telecommunications is a necessary and fundamental condition for economic development. It is fundamental for the modern economy. I am pleased that we have been able to privatize the state share of Cesky Telecom and that this will enable free competition on the market as this is the only way to modernize and provide new services.

Transportation and telecommunications are two aspects, which are integrated into the global world. Considering this, how is your cooperation with EU member countries in general and France in particular?

Regarding the transportation sector, it is very important for us to cooperate with our neighbours and we need to improve our communication with them. This cooperation has been present for a long time and we are trying to increase it, especially with EU member states. We are sorry that there has been a protective policy to limit access to the transportation market and we are not very happy about this as it installs a transition period, during which the access to the EU market will be limited for Czech transporters. This is not very good for mutual relations between countries, but I believe that it is probably due to a limited knowledge of our country and that these protected measures will be cancelled when the Czech Republic will enter the EU.

Regarding the relationship with France, we cooperate in air transportation, as Czech Airlines is a member of Sky Team with Air France. We also cooperate together on road transportation and we find it very useful. I am very happy with the development and production of buses through the cooperation between Renault V.I., Iveco and Karosa. Since then, 3000 busses made in the Czech Republic are in use in France.

I am also glad that the French investors have discovered the Czech Republic and are now the second biggest investor in the country. I believe that this is a good opportunity to work together and cooperate in third world countries. As the Czech Republic has a lot of experience in countries, which are east from ours, it could be an opportunity for French investors. I would like the Czech Republic to further improve business and political relationships with France as I consider France as an example of a free country and this is an example to follow.

What do you see as your biggest challenge in this position for the near future?

The biggest chance is to take part in becoming a part of a civilized democratic Europe. And we need to modestly accept the fact that not all of our opinions are good and that we need to cooperate with the EU to find the best solution. This is the biggest opportunity of my life and this is why I am in politics.
  Read on