Czech Business Today

The EU’s goal is to reduce the administrative burden by 25% by 2012; however the commitment will probably not be fulfilled. 

Moreover, reducing administrative burdens is based on analysis from 2005 and does not include new obligations specified by later adopted legislation (e.g. REACH). Yet, all these efforts should be evaluated very positively. Important question is what will be the EU’s goal after 2012. Reducing administrative burden is of a high priority for representatives of public bodies and business organizations who participated at CEBRE´s debate on 7th November 2011 in Prague. 

It is impossible to adopt high-quality rules of law without well-functioning state administration, comprehensive and integrated impact assessments of proposed legislation and closer dialogue with stakeholders. Czech entrepreneurs have high expectations from transferring the RIA agenda (“regulatory impact assessment“) under the control of the Czech State Government Office and of the creation of an independent board of experts composed of representatives from business and academia that will be in charge of assessing the impact of forthcoming legislation. Consultation of businesses and constant dialogue with stakeholders can be a good inspiration for the Government Office´s new task. 

However, business organizations have an insufficient capacity to control impact assessment in all areas. Therefore, the business representatives asked for special subsidies from EU cohesion funds to build up these capacities. The speakers also pointed out that the Impact Assessment Board at EU level should more consider regional specifics. Till the end of last year, the Czech Republic succeeded to reduce the administrative burden by 15.6% compared with 2005 within the framework of an ambitious reduction target – 20% by 2010. The CR has also to face the fact that it has the highest transposition deficit of the EU regulation. 

At CEBRE´s seminar in November, Petr Mlsna of the Czech Government´s Legislative Council explained the new methodology of RIA to be implemented beginning next year. He stressed the need to implement the RIA also ex-post, change the formal approach to the RIA by ministries, draft impact assessments for strategic and conceptual papers and last but not least to set up an independent expert board. The Czech Republic should also start preparing IAs when drafting a national framework position to the EU legislative proposal and to the delegated acts within the commitology. 

Bedřich Danda, Deputy Vice-Minister of Industry and Trade, stressed that till now the reducing administrative burden helped businesses to save €462 mil, however businesses prefer to measure the burden in a saved time. Czech entrepreneurs are still subject to more than 190 information obligations. 

Professor Michal Mejstřík, Chairman of ICC Czech Republic and Member of National Government Economic Council, said that the weakest points of the Czech competitiveness are the State institutions. In this context, it is necessary to change the Rules of Procedure of the Chamber of Deputies, in order to prepare IAs also together with substantive amendments. 

Tereza Šamanová, Director of Legislative and Information Dept. at the Czech Chamber of Commerce recommends to start with cutting red tape at State offices by introducing the e-Journal, single contact points for taxes and common commencement dates.