Dec 30 (Reuters) - The Czech Republic takes over the
six-month EU presidency on Jan. 1 with the bloc struggling to
address the gathering economic crisis, revive a stalled reform
treaty, and overcome cool ties with Russia.
Following are key tasks, problems and events facing the EU
and the Czechs in the first half of 2009.
* Financial crisis
As EU president, the Czechs should lead the debate on the
response to the financial crisis and economic recession.
This may be difficult as heavyweights Britain, Germany and
France will want to have a decisive say on the matter. The Czech
Republic remains outside the euro zone, so it does not take part
in monthly meetings of the euro area's finance ministers, seen
as key to forging deals when the EU's 27 finance ministers meet.
The Czechs, being economically liberal after decades of
communism, have said they would oppose any bold government
spending or ownership plans; they are in favour of smaller,
targeted initiatives with limited time horizons.
* Small size
The Czech Republic's small size makes it difficult for
Prague to be a strong partner in talks with powers such as China
and Russia, for example on trade, or to help solve unexpected
crises, like the Georgian-Russian war.
* Diplomacy
The presidency will be tasked with preparing summits with
new U.S. President Barack Obama, Russian leaders and China. The
Czechs want to make the EU more active in solving the Middle
East conflict and plan to hold a summit with Israel. They are
expected to launch the EU's new eastern partnership programme
for countries such as Ukraine and Georgia.
* Climate
Having agreed on its own package to fight climate change,
the EU should play a key role in global talks on the issue,
which will culminate in final talks in Copenhagen in December.
* Energy
The Czechs have set energy as one of their priorities, and
want to lead debate on better supply security and
interconnection of power grids.
* European elections
Elections to the European Parliament will be held in June.
With campaigning expected to dominate April and May, all major
decisions should be pushed through the assembly by end-March.
* Lisbon treaty
The Czechs are tasked with reviving the treaty by ratifying
it themselves and overseeing the drafting of assurances for
Ireland so it can hold a second referendum on the charter.
The Czech parliament, one of the few EU chambers yet to have
ratified the treaty, is expected to debate it in February.
* Enlargement
Overseeing the final phase of EU membership talks with
Croatia, with some EU countries sceptical towards the executive
European Commission's conditional proposal to conclude the talks
in 2009. Making progress in accession talks with Turkey.
The Czechs are keen on enlargement and hope to oversee
progress with Croatia and a membership application from Serbia.
* Regulation
The Czech will face an uphill struggle in trying to clinch a
compromise among divided EU states on reduced rates for value
added tax, the Solvency 2 package reforming the insurance
sector, new rules for credit rating agencies and tougher capital
requirements for banks. The EU may also start a debate on
regulating hedge funds.
The Czechs have made clear their general position on being
cautious in reining in the free market and will be vary of any
bold regulation initiatives.
