After the European elections in Czech Republic: Fragmented polarisation and demise of the Left – VoxEurop (English)

It was surprising just how much of a trouncing the Czech Left took in the European elections. The Social Democrats were the country’s major governing party from 1998 to 2006 and from 2014 to 2017, thereafter a minor partner in the government. In May they lost all of their seats in the European Parliament, got just 3.95 percent of the vote.


This is a companion discussion topic for the original entry at https://voxeurop.eu/en/2019/after-ep-election-czech-republic-5123690

The article is quite correct. The Social democratic party has been declining recently because it is seen as rather outdated party focused on finding ways to secure roles for party members in the state administration rather than coming with fresh ideas. Moreover, in the case of the EP election, there was also fear of the potential voters of this party (lower classes of the society) that their MEPs would become part of the pro-immigration socialistic faction in EP. That’s why votes of these lower classes went to populistic parties (prime minister’s ANO - whose MEPs are, however, part of Macron’s Renew Europe faction, - and Okamura’s SPD) and votes of leftist progressivist went to the Pirate party (that also received votes of most young people as a representative of the views of the Generation Y as well as more and more active Generation Z).

The article is correct that flame-war on digital platforms between older generation raised in communism that is currently at its pension age and is rather bored and therefore spends its time following various fake-news media (many of them supported directly from Russia) and young forward-looking generation that absolutely doesn’t understand and accept their views, is indeed strong.

The article is also correct that much accented topic in the public discourse is how the Czech Republic and their citizens is treated by the West. There are indeed reasons for this because the Czech Republic basically brings highest profits to Western companies that however don’t follow Western standards (not only in renumeration) and all the profits transfer outside the country and provide their own services at prices as high or even higher than in western EU members (for example, telecommunication companies, banks, etc.). Moreover, unlike other new EU members, the Czech Republic was not able to use the cohesion funds EU subsidies for increasing quality of living in the country (e.g. another Voxeurop article shows that it has lowest investment to transportation infrastructure) therefore citizens indeed don’t see any benefit of EU membership that would directly affect their lives - this is of course fault of the local political representation but ordinary citizens can’t realize that.

By the way, this topic also includes they way foreign-owned banks behave in the Czech Republic and therefore I answer the Selber’s post from another article here:

I didn’t write that ECB lives at the expense of the Czech Republic but some big commercial banks from Eurozone do.

The motivation of ECB for the negative interest rates is to discourage the commercial banks from saving their deposits within ECB but rather provide them as loans to business subjects and thus increase the business activities and accelarate the economy of EZ countries.

It is however, obvious, that after the financial crisis of the last decade, banks don’t want to be involved in risky operations (which providing loans to business subjects and citizens inherently is) and seek tricks to gain profits without any risks - and thus transferring their spare deposits to central banks of countries that provide higher interest rates is one of those risk-free profit operations.

But this also show that the monetary policies of central banks are failures because the commercial banks (and other subject) don’t listen to what the central banks want but seek their own ways for profit. This also applies to the Czech National Bank that increased its interest rates in order to a bit slow-down the economy and address inflation caused by low unemployment (current Czech inflation is 2,9%) and also wanted to at least partially provide compansation for the inflation to ordinary citizens via higher interest rates on saving accounts. And despite the CNB representatives clearly stated that they expect the commerical banks to increase the interest rates on saving account of their clients, the banks didn’t respect that, kept the interest rates for their clients low and rather saved the spare money from their Euro-zone branches within CNB - they thus live at the expense of citizens in three ways (don’t compensate citizens for inflation that they central bank wanted, make huge profits at the expense of CNB on their own spare deposits in eurozone, and of course make huge profits on their services to Czech clients that is then transferred as dividends outside the country).

You see too much monetary policy, it’s not about forcing the banks to invest. It’s about devaluing the debt, which also means robbing the creditor. With negative interest rates you could even pay off a loan! But who wants to give such a loan? Banks are helpless, the classic business of banks is interest. A bank can not survive with negative interest rates. To avoid that, they has to throw out all the money, what is called invest here. An investment is a business between two partners. But business can not be called it, if a partner has no choice. I call it robbery. The over-indebted South, is to be free of debt.The Czech Republic and its banks have as much to do with the ECB as any other foreign currency. No more and no less .