Commission recommendations aim correctly, but implementation is crucial

Better availability of childcare facilities and reduction of tax burden on labour for persons with low income could increase employment, says European Commission in this year’s Country Specific Recommendations for the Czech Republic.

In addition, the Commission recommends fiscal correction of 0.5 % of GDP in 2016, further improving the cost-effectiveness in the health care system, better tax collection and reforms to improve the higher education system, implementation of anti-corruption plans and establishment of central register for public procurement. The economic recommendations were the main topic of a debate organized by CEBRE with EC Representation in the Czech Republic in the European House in Prague at the end of May.

According to Jan Michal, Head of the EC Representation in the Czech Republic, this year’s recommendations focus on the reforms that can have real benefits for the economy, such as fight against tax evasion, reduction of labour tax burden and, last but not least, the higher education reform. However, it is the duty of the Czech government to implement these reforms. Lucie Šestáková, Deputy State Secretary for European Affairs from the Office of the Czech Government welcomed the new schedule of the European semester that gives member states more time for consultations. Jan Bureš from Era Poštovní spořitelna mentioned that the Commission does not come up with some revolutionary recommendations, but it reminds member states more than ever before on what areas they should focus, which is definitely a positive thing. He agrees with the proposed recommendations, but ads that the Czech Republic must constantly seek new growth impetuses to strengthen the economy in areas such as investment in the knowledge economy, in order to get closer to living standards of its western neighbors.

All speakers agreed that the recommendations have undoubtedly the potential to boost domestic economic growth. The most important phase, however, will be the implementation.