We had a conversation with one of the most seasoned entrepreneurs, who established the company in 1990, about the business climate, bureaucracy, and the adoption of the euro. You can read his insights on these subjects in our interview with Cyril Svozil, the founder of FENIX GROUP.
As one of the first trading companies established in 1990, you have witnessed significant changes in the market environment, including our integration into the European Union’s single market. However, the fundamentals of good business should remain constant. Do you agree with this perspective?
My favourite memory is from the 90s. It was a period filled with immense enthusiasm and genuine freedom. Challenges were seen as opportunities to be conquered, and this was made even easier by a relatively small public and state administration compared to today’s standards!
Joining the EU was largely a positive move, as it eliminated many prejudices and barriers. However, over time, the EU began to shift from a relatively free community of states to something resembling the organization of the former Soviet bloc. The initial emphasis on services and a free market has gradually been overshadowed by increasing bureaucracy and oversight. As a result, formerly independent citizens and companies have increasingly become pawns, reluctantly complying with a vast array of often conflicting regulations and directives!
Currently, I would describe the business conditions as the worst in history. The free market is crumbling under the weight of regulations and subsidies. The customer and their preferences are no longer prioritised and must fully submit to the decisions made by the “authorities”.
You have been engaged in the European market for an extended period and export your products to over 70 countries. What opportunities does this market present for you, and how do you secure your position within it?
EU accession was undoubtedly positive up until around 2010. However, after that point, the EU’s new role began to fully emerge, characterised by rampant bureaucracy, the deliberate dismantling of the market economy, and the introduction of central planning and management elements accompanied by subsidy policies. This transformation of the EU was further solidified with the introduction of a new green ideology!
Due to these reasons, we unfortunately have no alternative but to gradually move the core of our activities to areas with more favourable conditions. The speed of this transition will depend on the continuing bureaucratization of EU structures.
The Czech Republic is highly export-oriented, and the business community has long debated the introduction of the euro. What is your perspective on joining the eurozone and adopting the euro?
In the entire debate surrounding the adoption or non-adoption of the euro, where the views of multinational corporate managers significantly differ from those of Czech business owners, one key argument seems to be missing for me. Abandoning the Czech crown represents a substantial interference with our national sovereignty and would only be reversible at a considerable cost. Therefore, this step should be undertaken only if the currency zone we are joining is a successful economic project with significant growth potential that ensures the positive economic development of the Czech Republic and improves the living standards of its citizens. However, considering the performance of the eurozone, its growth and potential over the past 15 years have been among the lowest, with virtually all other economic zones across different continents growing much faster. Consequently, at this time, I do not see any benefit for the citizens and businesses of the Czech Republic in adopting the euro.
Thank you for the interview.
