Priorities and expectations from the incoming government

The Confederation of Industry of the Czech Republic presented to the representatives of political parties the priority areas for the promotion of the economy and welfare, which the future government should focus on. These include consolidation of the state budget, response to demographic changes and their negative impact on the labor market and pensions. Among other things, the Confederation of Industry expects the new government to prepare the country for the transition to a low-carbon economy and to make good use of its Presidency of the Council of the European Union. The Confederation of Industry presented its priorities and expectations before the elections to representatives of eight political parties.

The retirement of almost 750,000 people, the Europe-wide transition to a low-carbon economy or significant changes in education and the labor market due to the modernization of industry and the development of new technologies. According to the Confederation of Industry, these are just some of the trends and challenges that the Czech Republic will have to deal with in the coming years and decades.

"If we want our country to progress and people to be satisfied, we need functioning and skillful companies as well as an efficient and pro-client government. It is up to the new government to create a stable, predictable and motivating environment for business and for life in our country," says Jaroslav Hanák, President of the Confederation of Industry of the Czech Republic.

Investment is the basis for development and the future. The Confederation of Industry points out that public funds will also need to be used purposefully. "By 2030, the Czech Republic will have a total of almost one trillion CZK of European funds at its disposal. The government must launch all operational programmes, the National Recovery Plan and other support instruments as soon as possible and ensure their effective use without unnecessary administrative and time burdens. Businesses are investing huge amounts of their own resources in the challenges of the future and in their own development. Properly set support can facilitate the implementation of European objectives and in some cases it will not even be possible without it," points out Jaroslav Hanák, President of the Confederation of Industry of the Czech Republic.

Many societal changes and challenges, including climate protection, will take place at a pan-European level. The Czech Republic must therefore be an active and constructive member of the European Union. One of the first tasks of the new government, according to the Confederation of Industry, should be to prepare thoroughly and in time for the Presidency of the Council of the European Union, which the Czech Republic will assume in the second half of next year.

Most of the new laws in the Czech Republic originate in the EU and it is Europe that is accelerating new challenges. "During the Presidency of the Council of the European Union we will have the opportunity to significantly influence the agenda and priorities of the European Union. We can be an active driver of European policy already next year and business wants to make the most of this opportunity. The approach of the new government will determine how well the Czech Republic succeeds," says Radek Špicar, Vice President of the Confederation of Industry of the Czech Republic.

The Confederation of Industry perceives the upcoming economic and social challenges. Companies are preparing for many of them and expect the same from the government. That is why the Confederation of Industry presented its priorities and expectations to the political parties. Their management by companies as well as the government is crucial for the Czech Republic to successfully face the challenges of climate change, digitization or changes in the labor market. "I am pleased that eight political parties have shown interest in the business priorities of the Confederation of Industry. We have been meeting with them and other colleagues since the spring and have presented them with the economic challenges that we have been addressing at the Confederation of Industry for a long time. We are ready to work on them with the future government - whatever it may be," explains Jaroslav Hanák, President of the Confederation of Industry of the Czech Republic.

PRIORITIES AND EXPECTATIONS OF THE CONFEDERATION FOR THE INCOMING GOVERNMENT:

DIGITALIZATION

• Make meaningful use of available European funds for the digital transformation of companies.
• Ensure that businesses can handle all their agenda from the comfort of their office and share data with the public administration only once and electronically.
• Engage more at European level to counter efforts to overly regulate the digital economy and new technologies.

EDUCATION

• Increase the readiness of pupils and adults for the digital future and new technologies.
• Introduce a clear and functioning dual education system.
• Establish a functioning system of further training that enables workers to quickly acquire recognized new skills (upskilling/reskilling).

LABOUR MARKET

• Simplify the recruitment process for foreign workers.
• Launch a high quality and economically sustainable pension reform based on a balanced principle of solidarity and merit, which will not lead to additional levy burdens on businesses. With that reform, the government must address the retirement age, encourage flexible working hours organization and provide greater opportunities for retirees who want to continue working in a field other than their original qualification.
• Encourage flexible forms of work (e.g. off-site work), including flexible working hours organization.

TRANSPORT

• Significantly accelerate the pace of new motorway construction. Ensure funding and continuation of the construction and upgrading of basic transport infrastructure in all transport modes.
• Accelerate the construction of charging and filling station infrastructure for electric vehicles and other alternative propulsion, including sufficient fast charging stations.
• Facilitate the onset of autonomous driving and smart infrastructure, innovative traffic management solutions.
• Increase safety and comfort on the railways through greater support for ETCS and the purchase of new modern and emission-free trains.

EXPORT

• Encourage diversification of exports, in particular business missions that accompany the highest constitutional officials on their foreign trips and are crucial especially at more complicated or distant markets.
• Strengthen the role of CEB and EGAP in export financing and insurance.

GREEN DEAL AND ENERGY

• Support the search for business opportunities in the gradual decarbonization.
• European regulation must not threaten the competitiveness of Czech businesses or disproportionately increase costs for businesses and households.
• Be active in negotiations at EU level and subsequently during the Czech Presidency.
• Ensure and support the construction of new energy sources (renewables, nuclear, gas).

TAXES AND PUBLIC FINANCE

• Through systemic changes, move more ambitiously towards a balanced state budget without undermining long-term economic growth, e.g. reduce the number of civil servants, digitize the state administration.
• No increase of the current tax burden businesses face, no ill-conceived changes.
• Simplify tax administration, for example by automatically and quickly refunding the undisputed part of VAT refunds or reducing reporting obligations by interlinking state administration systems.
• Extend extraordinary accelerated depreciation to 2022.

RESEARCH AND DEVELOPMENT

• Create the conditions for total R&D expenditure to reach 2.5% of GDP by 2025 in line with the Czech Innovation Strategy 2030.
• Ensure sufficient resources to support corporate R&D, in particular in the TREND, National Centers of Competence and other programmes.
• Approve a significant modernization of R&D&I legislation to simplify support and increase the flexibility of the support system.