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Czech Republic prism Petter Povel says he believes his country will adot the Euro, but it will take some time. He spoke exclusively to Bloomberg's critique dub a subject that has been a point of contention here in the Czech Republic, which is, of course, the Euro and the potential adoption of the Euro. You've talked about this and reopened the debate, and I'm curious where you think that debate is going.
This debate has become truly emotional and irrational. My simple argument to our population is that we are dependent on your zone, if you like it or not, most of our trade is with the euro Zone, and in that sense, it doesn't make too much sense. When Eurozone discusses future
steps and rules, we are behind the door. The sentiments are mostly negative because people were told by a number of politicians that by adopting Euro they will become poorer and everything will be more expensive and we will have no freedom and autonomy to adjust the courses. In reality, the room for adjusting courses with our own currency is so narrow that it really doesn't make too much benefit.
So sooner or later. I believe that rational reasons will bring us to the adoption of Europe, but it will take some time.
How can you sway public opinion from your perch.
I would say by pointing to examples of countries which are often visited by our citizens, like Slovakia. Now Bulgaria will also become a country of herosone. And of course we look at these countries as some that followed the same destiny as we did in the past, and I believe if they are successful in adopting euro then why shouldn't do we.
A lot of the strength of the euro at the moment, unprecedented strength through the momentum in the last couple of months, has come as a reaction function to two key factors, and that is perhaps policy decisions coming out of the United States and also a massive fiscal impulse from from Germany and other countries. As across Europe, where do you feel like perhaps the risk is largest from the west or from the east.
They are different these pressures. On the one hand, from the East we face a tremendous security pressure, while from the West special especially from the United States, it's more political financial. Both of these pressures should lead us to an understanding that we shouldn't behave as a spoiled child, that we have to take care about ourselves economically, politically, diplomatically,
and even military wise. And in that sense, I feel a growing understanding that Europe has to take its own destiny to our own hands and to develop our own capacities for defense, to develop a further common market, make it more efficient and flexible so that we can face pressures from any side, and at the same time that Europeans should become our own zone of influence.
The Czech Republic has been crucial in some of that aid that you're referencing in terms of Ukraine, specifically in the field of ammunition and coordinating some of that. Can you talk us about the goals there and what that procurement plan basically looks like into going into this year but also into twenty twenty six.
The primary reason for initiating this activity to provide Ukraine with ammunition was a feeling of frustration that we cannot give them more from our own resources. But we knew where this ammunition was to be found, and we found the ways and procedures how to deliver it, and we got in tounship with partners who were willing to provide financial resources and have an oversight of the overall activity.
And in the meantime we have developed a procedure with the involvement of number of allies who are providing significant resources, we can ensure a study flow of so much needed ammunition to Ukraine. This year, we will't be able to guarante the one point eight million rounds of large caliber ammunition in average at about eighty thousand rounds one fifty five caliber every month, which gives Ukraine a sense of stability and guarantee, and of course it gives them clear
parameters for planning. And we will continue continue that not only through this year, but we are also ready to continue next year if necessary.
So it suffice to say that there is a possibility this war extends into into twenty twenty six, despite efforts from around the world to find a peaceful solution. Talk to us about what a peaceful solution looks like.
I think many of us wish Ukraine in the best that means full restoration of their territory, integrity and sovereignty. But we are also realistic and we see that it will not be possible in full. And that's why we understand that part of the territory will be for some time temporarily occupied by Russia and that there will be
necessary concession to be made by Ukraine. But at the same time, now I mean all the countries supporting Ukraine, we should all collectively strive for the best possible result for Ukraine that will be as just for Ukraine as possible, recognizing that Russia is an aggressor and Ukraine is a victim,
and aggressor shouldn't be rewarded for his aggression. And that's why we shouldn't allow the situation where Russia would clearly declare the victory by imposing all other conditions and Ukraine losing almost everything.
Is a peaceful solution something that can be found without the support of the United States. Is this something that you're leaders can achieve.
I don't think so. Russia is a country that respects power in all senses of definition, and they see the power in the United States, not in Europe. And President put In clearly shows that he is only ready to talk to his counterpart in the United States, regardless what
European leaders think. I believe that in that sense, we have to coordinate very closely with the United States because it is also in their interest not to let Russia prevail in this conflict, because otherwise they would see it as a confirmation of their approach to foreign policy, to their security requirements, and sooner or later it will turn against the interests of the United States. That's why we are trying to coordinate as much as possible with the
United States. Our views make our American alliance understanding the context in which this war isn't going and what different outcomes would mean for United States as well as for Europe and the world. Right now, I believe there are two major avenues how to push Russia to the table. One is obviously on the battlefield, supporting Ukraine militarily and financially to hold the territory and hold the defense strong to create conditions for peace negotiations that will be favorable
for Ukraine. And on the other hand, and it's even stronger in my view, it's economic and financial pressure on Russia to sit to the table because right now they are not showing any willingness to negotiate the piece because they still see that they can prevailer.
In the interim. There has been a big conversation, of course, about defense spending and ramping it up across the European continent, perhaps creating or filling some of the gap that the United States has pulled out of ours astempting to pull out it. When it comes to NATO spending, I am curious though, how long that process will take. A defense ramp up, as you know from your former percheon NATO can take years. What can the EU and NATO do within the next couple of months to affect the outcome.
Well, first, we will have to preserve unity a NATO summit in the Haguen couple of weeks to keep American allies engaged in Europe both politically and militarily. And we all understand that European allies will have to take a much greater responsibility for our own defense. But this transition, the handover of responsibility from the United States and more
to Europeans, will require some time. And even if we adopt the decision to increase significantly defense pending, even if we apply all the measures of flexibility and efficiency, it will really take years to replace some of US strategic enablers such as strategic intelligence, communications, logistics, and some others, and of course, if we don't want any security gap to be created in Europe, we will have to seriously negotiate with our American allies about our good transition plan.
What is realistic to achieve? I understand that United States will not try to exert pressure on Europeans to do it faster, but even if we do our best, we will not be able to do it in just a couple of months or or just units of years. Uh. Some like strategic intelligence and targeting will may easily try to take a decade to achieve that capability. But I truly believe that we can achieve good results if we have a good and coordinated plan.
A final question to you, as you say that you will be attending that NATO summit, there are reports that Donald Trump will be attending as well. What do you expect to hear from President of the United States.
I expect continuation of his approach from his first term, which I witnessed in person, uh, and it's even stronger now during his second term. He will be pushing on European allies and also on Canada to do more and faster. So we can expect the push for commitment to defense spending at five percent, we can expect some short timelines for taking over this responsibility. We can also expect more commitments from European allies in terms of support to Ukraine.
But I personally don't expect any negative surprise because I believe that the agenda of the summit is deliberately kept to a minimum extent so that we have an agreement. And that's that's why I believe that the summit will nar iterate unity of NATO, commitment of the United States to Article five and a commitment of all of US to increase defense spending and overall capability for defense.
We look forward to seeing what that NATO Summit brings present. Thank you so much for your time, a pleasure to have this conversation.
Thank you