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Good morning ladies and gentlemen.

I welcome Matudu Kramas Avila for a press conference after a meeting between the Prime Minister of the Czech Republic,

Andrej Bajuk, and the European Council President, António Costa. Let me hand over to Andrej Bajuk. Good morning ladies and gentlemen.

European Council President, I am very happy that you have visited us.

I am very happy that we had the opportunity to discuss for 2 hours our views on key priorities within the European Union.

Since the beginning of our government, we have been very active.

We have come up with solutions regarding competitiveness for the European Union.

I'm especially talking about emission allowances and the ETS system because this is crucial for competitiveness.

The main topic of our meeting, was the upcoming multi-annual financial framework, President, in,

June 2020, you and me, we were both Prime Ministers,

and, we discussed back then. This topic as well.

We were in different roles back then, but I'm very happy that you came here to listen to our opinions.

I understand that the President wants to finalize the discussions regarding the MFF by the end of the year. We all need to agree.

We will see whether we will be we will be able to.

Do it before the end of the year.

For us, what is crucial is to make sure that the Czech Republic reaches the best possible result. I told the president.

About our opinions regarding cuts in cohesion and in agriculture, cuts in this area are unacceptable for us, of course we support investment in Security and competitiveness,

but it must not be at the cost of other sectors,

European states have to stay equal.

The new budget must not be at the cost of weaker economies.

It is also crucial to make sure that the centrally managed programs, for example,

those supporting competitiveness, must benefit all countries,

not only the wealthiest and largest countries.

We also have issues in the energy sector. We pointed this out again today.

The European Commission presented in June a proposal for a revision of the ETS system.

We were the most active member state in this area.

I called for a revision of the emissions trading system already in September 2021.

Back then I said that the ceiling had to be €30.

The European Commission predicted that in 2030 we would have 2650s, but now we have 80s.

And the check Industry has lost €159 billion as a result,

and this is of course negative, so we need a revision.

High emission allowance prices destroy our industry,

and Europe has to make sure that industry does not leave Europe.

The proposal regarding the distribution of revenues from allowances is also not acceptable for us.

We need to make sure that the revenues from allowances stay in the hands of Member States.

Regarding resources, we see different options, for example, increasing the income from tariffs.

This revenue could go to the budget of the EU. We discussed other topics as well.

We discussed different regulations and directives which do not help European competitiveness.

We have known each other for a long time, me and the President of the European Council.

We have a very friendly relationship and we can speak openly, and I'm very grateful that the President spent so much time with us,

and we wish him a lot of luck when negotiating with other Member States. Thank you very much.

Thank you, Prime Minister, and now let me hand over to António Costa.

Andre, first of all,

thank you very much for your warm and very constructive meeting today.

And to welcome me in this beautiful city of Prague as this wonderful backdrop can show.

It is essential for me to engage with all the leaders in their own countries because in our union every voice,

every national position matters.

We are reaching a decisive moment in the negotiations on our next European budget for 2028-2034. The geopolitical environment.

Has changed since we approved the current budget in 2020.

Now, more than ever, we need to invest in defense and security,

competitiveness and innovation, and strategic resilience.

This means being consequential about our ambitions,

modernizing our next budget so that we deliver on our new priorities while preserving.

The key pillars of support to our regions cohesion and agricultural policy.

At the same time, like national budgets,

the European Union budget must deliver its priorities within the limits of finite resources.

Most of it is financed through Member States' national contributions,

and we need to keep those contributions within reasonable limits.

That is why new own resources will also be a crucial element of the overall package.

They will help reduce national contributions and at the same time, to support ambitious investment.

It is essential that we reach an agreement by the end of this year. Why?

Because we cannot allow any interruption in European funding to vital projects and policies in 2028.

To reach this goal, we need to work together in a spirit of European unity.

I am grateful for your constructive approach on this issue, Andre,

and I am confident that all together we will rise to the challenge. Affordable energy.

It is fundamental for Europe's competitiveness, especially for our industry. Czechia is an industrial leader in Europe.

That is why it was so important for me to hear your perspective.

Ensuring affordable and competitive energy prices is key,

both for our citizens and for our industry.

Therefore, we need to accelerate our work to reduce energy costs while pursuing our efforts on the clean transition and decarbonisation in a technology neutral way. That means nuclear or renewables.

Protecting the future of our industries is also a matter of strengthening Europe's security. This requires a responsible and balanced approach.

This is one of the main objectives of the European Union's One Europe,

one market agenda complete our single market.

At the same time, supporting Ukraine,

Moldova and the Western Balkans on their European path is an investment in Europe's security and prosperity.

I very much appreciate the Czech Republic's constructive and coherent engagement in this area. We must continue to move forward. With a fair, transparent, and merit-based process.

Every Member State As its own priorities and the missions influenced by its geography and circumstances.

Prime Minister, dear Andre, listening to your views is essential to help shaping our common response, because Europe's strength comes from its unity,

and like 7 years ago, we will reach a good agreement at the end of this process. Thank you very much.

Thank you very much, President, and now questions from the journalists Czech TV. Teresa Prokeshova, Czech TV.

Let me ask the Prime Minister, what amount would you like to negotiate for the Czech Republic?

What would you consider to be a success, and then what do you want to use the money for?

So what are our priorities, even if in the end the amount is not as big.

Well, where would you like to make savings or what would be your priority,

and then I will have a question for the Council President.

Well, I told the President of the European Council that our government wants to invest,

invest in healthcare and in transport infrastructure. Our country. They do not have. The opportunity to build. Appropriate network of highways.

But our priorities are reflected in our budget.

As for the amount, I do not want to name a specific amount. Even though we discussed some figures. We tried to explain.

That our region, the Visegrad 4, but especially the Czech Republic,

is a specific region that we have a different energy mix that we do not have access to the sea.

That to be We have a limited ratio of renewable resources and as a result,

we have high energy prices.

So we are going to look for allies, like in the past,

on 10 September, we are going to have a B4 meeting in Bratislava.

The Irish Prime Minister will be present as well, because Ireland now has the rotating EU Presidency.

We will have negotiations also regarding the Ngobox,

about the multi-annual financial framework for 2028 to 2034.

Well, could you tell us approximately the amount?

No, no, I cannot tell you at this point.

And my question for the Council President,

do you think it is realistic to finalize the negotiations before the end of the year?

Can you assess, the negotiations up to now?

Is the term, the end of the year realistic?

Yes, it is not only realistic but necessary. First of all, why is it necessary?

Because normally we take more or less 1 year, 1.5, 2 years.

Since the moment that we approve the budget and the moment when the budget is starting feeding our companies, our farmers,

our students, our researchers, then it takes more or less between 1 and 2 years to arrive to the ground.

This year We have a new we are discussing a complete new budget with a complete new infra architecture.

It's not more only cohesion and agriculture,

but it is also competitiveness, research, defense.

That means that it will be more difficult for the European administration, for the national administrations,

for the collective society to understand the budget, the opportunities and to prepare to use these opportunities.

Then if you don't want to stop the financing in 2028,

and if you want to assure that since the 1 January 2028. The fundings are available.

We need to use all the year of 2027 to put in March this budget.

Then that's the reason because I insist we need to conclude this budget by the end of this year because we cannot afford the risk of our companies,

our farmers, our researchers don't have funding since 1 January 2028.

That's the main important point, why it's necessary and why I'm I'm optimistic,

because I, I have no doubt that all the leaders.

Not the same that I that I know.

We need this budget approved and the budget is always an exercise of compromise,

of dialogue.

The Prime Minister is a former minister of finance and is known very well and has also the experience of the negotiation on the last budget 7 years ago.

That is a matter of compromise between how much we want to spend and how to funding this. Next question.

Prime Minister, let me ask you the first question, could you tell us what are the red lines for Czechia, and are there any circumstances where you would block the budget,

and at the same time, do you think that the approval by the end of the year is realistic? I think it is realistic. The President has been doing his maximum. He is traveling around all Member States.

We are going to have 3 meetings before the end of the year. It is realistic.

As for the red lines, I wouldn't call them red lines.

We are just trying to explain that Heading 1, that means cohesion and agriculture.

But this is the money which we, which goes into our budget and then heading to.

Is for different companies within the European Union.

This is the part of the budget which goes to the companies.

And if these companies compete with huge multinationals,

they are disadvantaged and that's not what we like. That's why we do not like.

The proposals Of the Commission because there is a drop from 63% to 45% if I'm not mistaken.

But I am convinced that the President understood our arguments.

We understood each other and now we will see what the V4 decides to do,

how to proceed in the negotiations.

We are convinced that we will be able to convince our colleagues why we are saying what we are saying.

And now a question for the President of the European Council this morning you heard the arguments by the Czech Prime Minister.

Do you think it is realistic what the Czech Republic requires,

or are there any areas where you think that the Czech Republic will have to concede some ground?

You also discussed the expansion of the European Union. Could you briefly comment on this issue? Did you discuss it?

And do you think it is realistic that by 2028 Montenegro will join the EU?

And is the system of voting in the Council going to change?

Well, there, there are a lot of questions. First of all, about the, the budget. I'm visiting all the capitals.

I started two days ago here in Bratislava. I visited the three Baltic states. Today I'm in Prague.

Now I need to come back to Brussels.

Next week I restart and I will visit all the capitals during the next 3 weeks. And I will finalize in Dublin.

To share with the Irish president, the Irish prime minister.

What I heard from the the different leaders, because of course each country has their own ambitions, their own expectations,

and we need to find the optimal optimal mix on Olof this because at the end of the day we need an agreement at 27.

What I can say is when I compare with seven years ago. The mood is much more positive.

The people understand the dimension of the challenges that we have.

Because now we are not only speaking about vision and agriculture.

Talking about the security of our citizens, the defense of our countries,

and we need to boost seriously the competitiveness of our companies,

as Mario Draghi wrote in this in this report.

Then everybody understand that we need to preserve what we can preserve.

On the traditional policies we need to invest in what we need to invest as much as possible in the new policies and at the same time find a right way to funding all these policies.

This is the exercise and I think everybody is open minded on this and of course it's impossible to compare.

What is the result of the final result of the next budget with the previous one?

Because the previous one was basically built on national envelopes. This new budget only a part. Is based on national envelopes.

The other part is a global envelope to be shared between everybody.

Then when we conclude this process, nobody can say, I I will receive more,

I will receive less than I used to receive with the the former budget because it depends of the of the future and not depends of the,

of the budget because we have a completely different structure.

Now we have, we will have a European Council in October.

When I will try to fix the, the new own resources and when the Irish president will present a new negotiation box with figures,

and we will see what comes from this debate. We will have an extraordinary Council.

In November to continue this debate, and finally 17 December,

we have the European Council and last 7 years ago we spent 5 days and 4 nights.

I presume that everybody in this year wants to close the Council.

Earlier to come back to their homeland to their families to celebrate Christmas,

then I'm optimistic about this.

Yes, moving to Montenegro, yes, the,

the enlargement process is a geopolitical priority.

To the Western Balkans first of all, but also to Ukraine, to Moldova, is a merit-based process.

Right now,

Montenegro is clearly the front runner in this process and everybody is very optimistic about their capacity to conclude by the end of this year the negotiations of the different clusters and chapters and to use 2027 to agree on the accession treaty and we have already created the working group to draft the accession treaty.

Of course, when you look to enlargement, we need to also to look not we need to look what on the at the reforms that the candidate countries need to do,

but also how we need to reform our own institutions,

and this is a debate that we will for sure have in the coming in the coming year.

The Commission is committed to present proposals in order to ensure more efficiency in the in the works of in the way that our institutions are working. Prime Minister.

I think that the president has said everything. Montenegro is definitely ready for accession.

It will be the twenty-eighth member of the EU and I hope they will join in 2028.

Also Albania and other countries of the Western Balkans have been waiting for a long time.

In the past,

we also promised accession to North Macedonia and Montenegro is also a member of NATO.

The President of Montenegro was here for a visit, we had a meeting,

we had negotiations, and I hope that everything will work out.

This is the end of today's press conference.

Thank you very much for your attention and have a nice day. Goodbye.