WEBVTT - Czech President Petr Pavel Talks Trump, European Security

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<v Speaker 1>Bloomberg, Audio Studios, podcasts, radio news.

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<v Speaker 2>Czech Republic prism Petter Povel says he believes his country

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<v Speaker 2>will adot the Euro, but it will take some time.

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<v Speaker 2>He spoke exclusively to Bloomberg's critique dub a subject that

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<v Speaker 2>has been a point of contention here in the Czech Republic,

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<v Speaker 2>which is, of course, the Euro and the potential adoption

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<v Speaker 2>of the Euro. You've talked about this and reopened the debate,

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<v Speaker 2>and I'm curious where you think that debate is going.

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<v Speaker 1>This debate has become truly emotional and irrational. My simple

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<v Speaker 1>argument to our population is that we are dependent on

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<v Speaker 1>your zone, if you like it or not, most of

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<v Speaker 1>our trade is with the euro Zone, and in that sense,

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<v Speaker 1>it doesn't make too much sense. When Eurozone discusses future

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<v Speaker 1>steps and rules, we are behind the door. The sentiments

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<v Speaker 1>are mostly negative because people were told by a number

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<v Speaker 1>of politicians that by adopting Euro they will become poorer

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<v Speaker 1>and everything will be more expensive and we will have

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<v Speaker 1>no freedom and autonomy to adjust the courses. In reality,

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<v Speaker 1>the room for adjusting courses with our own currency is

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<v Speaker 1>so narrow that it really doesn't make too much benefit.

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<v Speaker 1>So sooner or later. I believe that rational reasons will

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<v Speaker 1>bring us to the adoption of Europe, but it will

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<v Speaker 1>take some time.

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<v Speaker 2>How can you sway public opinion from your perch.

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<v Speaker 1>I would say by pointing to examples of countries which

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<v Speaker 1>are often visited by our citizens, like Slovakia. Now Bulgaria

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<v Speaker 1>will also become a country of herosone. And of course

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<v Speaker 1>we look at these countries as some that followed the

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<v Speaker 1>same destiny as we did in the past, and I

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<v Speaker 1>believe if they are successful in adopting euro then why

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<v Speaker 1>shouldn't do we.

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<v Speaker 2>A lot of the strength of the euro at the moment,

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<v Speaker 2>unprecedented strength through the momentum in the last couple of months,

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<v Speaker 2>has come as a reaction function to two key factors,

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<v Speaker 2>and that is perhaps policy decisions coming out of the

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<v Speaker 2>United States and also a massive fiscal impulse from from

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<v Speaker 2>Germany and other countries. As across Europe, where do you

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<v Speaker 2>feel like perhaps the risk is largest from the west

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<v Speaker 2>or from the east.

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<v Speaker 1>They are different these pressures. On the one hand, from

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<v Speaker 1>the East we face a tremendous security pressure, while from

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<v Speaker 1>the West special especially from the United States, it's more

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<v Speaker 1>political financial. Both of these pressures should lead us to

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<v Speaker 1>an understanding that we shouldn't behave as a spoiled child,

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<v Speaker 1>that we have to take care about ourselves economically, politically, diplomatically,

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<v Speaker 1>and even military wise. And in that sense, I feel

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<v Speaker 1>a growing understanding that Europe has to take its own

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<v Speaker 1>destiny to our own hands and to develop our own

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<v Speaker 1>capacities for defense, to develop a further common market, make

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<v Speaker 1>it more efficient and flexible so that we can face

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<v Speaker 1>pressures from any side, and at the same time that

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<v Speaker 1>Europeans should become our own zone of influence.

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<v Speaker 2>The Czech Republic has been crucial in some of that

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<v Speaker 2>aid that you're referencing in terms of Ukraine, specifically in

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<v Speaker 2>the field of ammunition and coordinating some of that. Can

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<v Speaker 2>you talk us about the goals there and what that

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<v Speaker 2>procurement plan basically looks like into going into this year

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<v Speaker 2>but also into twenty twenty six.

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<v Speaker 1>The primary reason for initiating this activity to provide Ukraine

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<v Speaker 1>with ammunition was a feeling of frustration that we cannot

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<v Speaker 1>give them more from our own resources. But we knew

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<v Speaker 1>where this ammunition was to be found, and we found

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<v Speaker 1>the ways and procedures how to deliver it, and we

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<v Speaker 1>got in tounship with partners who were willing to provide

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<v Speaker 1>financial resources and have an oversight of the overall activity.

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<v Speaker 1>And in the meantime we have developed a procedure with

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<v Speaker 1>the involvement of number of allies who are providing significant resources,

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<v Speaker 1>we can ensure a study flow of so much needed

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<v Speaker 1>ammunition to Ukraine. This year, we will't be able to

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<v Speaker 1>guarante the one point eight million rounds of large caliber

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<v Speaker 1>ammunition in average at about eighty thousand rounds one fifty

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<v Speaker 1>five caliber every month, which gives Ukraine a sense of

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<v Speaker 1>stability and guarantee, and of course it gives them clear

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<v Speaker 1>parameters for planning. And we will continue continue that not

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<v Speaker 1>only through this year, but we are also ready to

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<v Speaker 1>continue next year if necessary.

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<v Speaker 2>So it suffice to say that there is a possibility

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<v Speaker 2>this war extends into into twenty twenty six, despite efforts

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<v Speaker 2>from around the world to find a peaceful solution. Talk

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<v Speaker 2>to us about what a peaceful solution looks like.

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<v Speaker 1>I think many of us wish Ukraine in the best

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<v Speaker 1>that means full restoration of their territory, integrity and sovereignty.

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<v Speaker 1>But we are also realistic and we see that it

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<v Speaker 1>will not be possible in full. And that's why we

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<v Speaker 1>understand that part of the territory will be for some

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<v Speaker 1>time temporarily occupied by Russia and that there will be

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<v Speaker 1>necessary concession to be made by Ukraine. But at the

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<v Speaker 1>same time, now I mean all the countries supporting Ukraine,

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<v Speaker 1>we should all collectively strive for the best possible result

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<v Speaker 1>for Ukraine that will be as just for Ukraine as possible,

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<v Speaker 1>recognizing that Russia is an aggressor and Ukraine is a victim,

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<v Speaker 1>and aggressor shouldn't be rewarded for his aggression. And that's

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<v Speaker 1>why we shouldn't allow the situation where Russia would clearly

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<v Speaker 1>declare the victory by imposing all other conditions and Ukraine

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<v Speaker 1>losing almost everything.

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<v Speaker 2>Is a peaceful solution something that can be found without

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<v Speaker 2>the support of the United States. Is this something that

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<v Speaker 2>you're leaders can achieve.

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<v Speaker 1>I don't think so. Russia is a country that respects

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<v Speaker 1>power in all senses of definition, and they see the

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<v Speaker 1>power in the United States, not in Europe. And President

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<v Speaker 1>put In clearly shows that he is only ready to

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<v Speaker 1>talk to his counterpart in the United States, regardless what

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<v Speaker 1>European leaders think. I believe that in that sense, we

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<v Speaker 1>have to coordinate very closely with the United States because

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<v Speaker 1>it is also in their interest not to let Russia

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<v Speaker 1>prevail in this conflict, because otherwise they would see it

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<v Speaker 1>as a confirmation of their approach to foreign policy, to

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<v Speaker 1>their security requirements, and sooner or later it will turn

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<v Speaker 1>against the interests of the United States. That's why we

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<v Speaker 1>are trying to coordinate as much as possible with the

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<v Speaker 1>United States. Our views make our American alliance understanding the

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<v Speaker 1>context in which this war isn't going and what different

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<v Speaker 1>outcomes would mean for United States as well as for

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<v Speaker 1>Europe and the world. Right now, I believe there are

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<v Speaker 1>two major avenues how to push Russia to the table.

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<v Speaker 1>One is obviously on the battlefield, supporting Ukraine militarily and

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<v Speaker 1>financially to hold the territory and hold the defense strong

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<v Speaker 1>to create conditions for peace negotiations that will be favorable

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<v Speaker 1>for Ukraine. And on the other hand, and it's even

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<v Speaker 1>stronger in my view, it's economic and financial pressure on

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<v Speaker 1>Russia to sit to the table because right now they

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<v Speaker 1>are not showing any willingness to negotiate the piece because

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<v Speaker 1>they still see that they can prevailer.

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<v Speaker 2>In the interim. There has been a big conversation, of course,

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<v Speaker 2>about defense spending and ramping it up across the European continent,

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<v Speaker 2>perhaps creating or filling some of the gap that the

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<v Speaker 2>United States has pulled out of ours astempting to pull

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<v Speaker 2>out it. When it comes to NATO spending, I am

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<v Speaker 2>curious though, how long that process will take. A defense

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<v Speaker 2>ramp up, as you know from your former percheon NATO

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<v Speaker 2>can take years. What can the EU and NATO do

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<v Speaker 2>within the next couple of months to affect the outcome.

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<v Speaker 1>Well, first, we will have to preserve unity a NATO

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<v Speaker 1>summit in the Haguen couple of weeks to keep American

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<v Speaker 1>allies engaged in Europe both politically and militarily. And we

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<v Speaker 1>all understand that European allies will have to take a

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<v Speaker 1>much greater responsibility for our own defense. But this transition,

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<v Speaker 1>the handover of responsibility from the United States and more

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<v Speaker 1>to Europeans, will require some time. And even if we

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<v Speaker 1>adopt the decision to increase significantly defense pending, even if

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<v Speaker 1>we apply all the measures of flexibility and efficiency, it

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<v Speaker 1>will really take years to replace some of US strategic

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<v Speaker 1>enablers such as strategic intelligence, communications, logistics, and some others,

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<v Speaker 1>and of course, if we don't want any security gap

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<v Speaker 1>to be created in Europe, we will have to seriously

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<v Speaker 1>negotiate with our American allies about our good transition plan.

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<v Speaker 1>What is realistic to achieve? I understand that United States

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<v Speaker 1>will not try to exert pressure on Europeans to do

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<v Speaker 1>it faster, but even if we do our best, we

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<v Speaker 1>will not be able to do it in just a

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<v Speaker 1>couple of months or or just units of years. Uh.

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<v Speaker 1>Some like strategic intelligence and targeting will may easily try

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<v Speaker 1>to take a decade to achieve that capability. But I

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<v Speaker 1>truly believe that we can achieve good results if we

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<v Speaker 1>have a good and coordinated plan.

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<v Speaker 2>A final question to you, as you say that you

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<v Speaker 2>will be attending that NATO summit, there are reports that

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<v Speaker 2>Donald Trump will be attending as well. What do you

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<v Speaker 2>expect to hear from President of the United States.

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<v Speaker 1>I expect continuation of his approach from his first term,

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<v Speaker 1>which I witnessed in person, uh, and it's even stronger

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<v Speaker 1>now during his second term. He will be pushing on

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<v Speaker 1>European allies and also on Canada to do more and faster.

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<v Speaker 1>So we can expect the push for commitment to defense

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<v Speaker 1>spending at five percent, we can expect some short timelines

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<v Speaker 1>for taking over this responsibility. We can also expect more

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<v Speaker 1>commitments from European allies in terms of support to Ukraine.

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<v Speaker 1>But I personally don't expect any negative surprise because I

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<v Speaker 1>believe that the agenda of the summit is deliberately kept

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<v Speaker 1>to a minimum extent so that we have an agreement.

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<v Speaker 1>And that's that's why I believe that the summit will

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<v Speaker 1>nar iterate unity of NATO, commitment of the United States

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<v Speaker 1>to Article five and a commitment of all of US

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<v Speaker 1>to increase defense spending and overall capability for defense.

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<v Speaker 2>We look forward to seeing what that NATO Summit brings present.

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<v Speaker 2>Thank you so much for your time, a pleasure to

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<v Speaker 2>have this conversation.

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<v Speaker 1>Thank you