Good governance / Legal Reform and Transparency
This section details initiatives to make government a competitive advantage. It includes analysis and reports of government initiatives, as well as data on accountability and performance measures.
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Spotlight issue
French court outlines new permanent/fixed establishment concept for digital sector
The court’s decision brings an entirely new view on a permanent/fixed establishment for companies operating in a digital sector. Will other EU member states also get inspired?
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New Czech foreign direct investment screening regime
On 19 January 2021 the Czech Parliament passed a new act that aims to strengthen the control of foreign direct investments in the Czech Republic (the "FDI Act"). The FDI Act has been introduced as a result of the new EU framework for the screening of foreign direct investments, which was adopted on 10 April 2019 and which applies from 11 October 2020. The FDI Act will have a significant impact on many strategic investments from non-EU countries. Rigorous and potentially retroactive screening of investments may deter potential non-EU investors from considering the Czech Republic as an investment target. The Ministry of Industry and Trade will be in a position to hit the brakes on in-scope transactions made by non-EU investors.
The FDI Act will become effective on 1 May 2021.
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