Economic policy
This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.
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Spotlight issue
Weston Stacey: A lot of people in America have underestimated Trump
An article of E15 published on March 12 on steel and aluminum tarrifs (in Czech language).
Last Thursday, the Trump administration announced its plan to place tariffs on steel and aluminum imports. The tariffs are intended to raise the production in US steel and aluminum plants to 80%, which is considered the minimum output necessary for survival. If the tariffs take effect, the EU has declared it will place reciprocal tariffs on US products of similar export value. The issue underneath the tariff decision- global overcapacity- is real, but imposing global tariffs does not appear to help solve the problem. An internationally coordinated response using targeted tariffs or quotas might be the best way to keep the economic and geopolitical damage to the minimum.
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The share of unemployed surprised with a stronger decline
The share of unemployed has turned south again after taking a two-month break. In February, it cut two ticks. The number of vacancies keeps growing and is approaching the number of reachable unemployed. That corroborates the view that the situation on the labour market is extremely tight, which should be visible in the wage statistics for 4Q17 released tomorrow. We expect an increase on the back of a surge of salaries in the public sector, Komerční banka says.
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