News

Spotlight issue

27th January 2021 / Good governance / Legal Reform and Transparency


Proposed amendment to the Employment Act – Short-time working from the employer’s perspective

New legislation on short-time working or reduced working hours (often referred to by its German name of Kurzarbeit) is currently passing through the Czech Chamber of Deputies and has reached the second reading stage.

27th January 2021 / Competitiveness / Transport, Infrastructure and Tourism


Flights between Prague and Ostrava

Try domestic route between Prague and Ostrava, LOT Airlines now offers flights up to 5 times a week. If you need to travel to Warsaw, continue on the same flight or use direct connection to Poland up to twice a week.

 

27th January 2021 / Good governance / Energy and Environment


ERO begins public consulting proces on the proposed parameters for setting 2022 subsidies

At the end of 2020 the first proposal for preliminary technical and economic parameters was posted on the Energy Regulatory Office (“ERO”) website (available for download here), which will be used to calculate the operating subsidies for new and modernized production facilities (the “Proposed Decree”) according to the bill of Act No. 165/2012, on promoted energy sources, currently under discussion (hereinafter the “RES Bill”).

26th January 2021 / Competitiveness / Employment and Social Affairs


Losing Antivirus contributions owing to formal errors

The Antivirus Programme is considered one of the most successful and best performing support programmes that the government introduced during the pandemic. According to statistics published by the Ministry of Labour and Social Affairs at the end of December, the number of supported companies exceeded 65 thousand and the total amount of provided support amounted to almost CZK 25 billion. However, some employers have ascertained that they will have to refund the aid already received under the programme even though they did not abuse the programme in any way and paid all relevant payments and mandatory premiums within the statutory deadlines.

25th January 2021 / Economic policy / Macroeconomic Indicators, Economic Growth


Higher pensions and lower taxes to boost consumption

At the turn of the year, two government measures came into force to help combat the coronavirus crisis and boost household consumption. The measures consisted of a one-time payment to all old-age, disability and survivors’ pensioners and the elimination of super-gross wage and related tax adjustments. This study shows that both of these measures can have a strong impact on household consumption due to their widespread effect. According to our calculations, higher pensions should lead to a temporary increase in household consumption of almost 2%, and in the case of the tax reductions, to a sustainable increase in consumption of up to 3.4%. But given the high degree of uncertainty and the closure of the economy, the current situation might hinder consumer spending in terms of either total expenditure and/or amount spent over time.

Strategic Directions for Czech Economic Policy

  1. Transition to High-Tech Manufacturing and Exports
  2. The City Campus as Idea Factory
  3. Government Programs and Processes That Drive Innovation
  4. Government as a Competitive Advantage, including Digitization

Advocacy Priorities for 2023 
 
Technology, People, Infrastructure

 

Actions Recommended in Areas:

1. Establishing Policy Objectives for Research.

2. Research Investment and Cooperation. Big Bets (Key Technology Projects).

3. Establishing Databases for Tracking Public Policy Outcomes.

4. Public Procurement as an Innovation Tool.

5. Immigration of STEM Talents.

6. Digitization of Immigration. 

7. Adult Reskilling and Upskilling.

8. Digitization of Land Use.

9. Infrastructure Development, including Technology Parks.

 

 

Read the documents in English and Czech.

Policy pipeline

In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.

Members of the American Chamber of Commerce in the Czech Republic