Accelerating investment in transport infrastructure, modernising the Labour Code and reforming regional education are part of a set of measures that the government of Petr Fiala wants to accelerate economic growth and modernise the domestic economy. These steps are part of a strategic document of pro-growth measures discussed by the cabinet at a meeting on Wednesday 10 July 2024.
The government of Petro Fiala discussed Strategic material that contains a number of pro-growth measures based on the proposals of the National Economic Council of the Government. The NERV compiled a list of 37 specific measures, from which the Cabinet, after consultations in the government coalition, selected those that should help increase economic growth and the competitiveness of the Czech economy. The government was presented with an assessment of what steps have already been taken and what is being implemented.
"In the previous period, we have managed all the crises and challenges that our country has faced, and now we must, and we are working on it, to accelerate economic growth so that our businesses thrive and the incomes of our people rise," stated Prime Minister Petr Fiala. "We are also fulfilling the government's programme declaration, in which we presented a vision of a state that does not live on debt, a state that is efficient, that supports innovation, science and research, and where innovation and research strengthen the Czech economy in international competition." he said, recalling, for example, that the state budget deficit is the lowest in five years. Compared to the previous government, the fiscal deficit to gross national product has been reduced by more than half and the government has also managed to beat inflation, which has fallen from 16 per cent in April 2023 to the current two per cent.
The government has prepared further reforms that will affect the flexibility of the labour market, ensure the sustainability of the pension system or help further develop Czech education, made substantial progress in the digitisation of the state and increased the targeting and efficiency of social benefits. "Yet we have one of the lowest levels of unemployment in the whole of the European Union and the lowest levels of poverty and existential vulnerability in the whole of the EU." Prime Minister Fiala pointed out.
"We know we need to do more, which is why today we have been reviewing further pro-growth measures and have set out four priority areas. The first are investments and aims to accelerate investment in transport infrastructure through PPP projects. We have been putting record amounts of money into transport infrastructure for the last two years and we are also starting and completing a record amount of construction. The second priority is labour market. We are working intensively on modernising the Labour Code as a fundamental driver of the labour market and also on setting up a social benefit system that would really motivate people to work." said the Prime Minister.
The other two areas on which the government wants to focus more in the remainder of its term are accelerating housing and other construction a changes in regional education. "We have radically shortened permitting times and made changes to laws that lead to faster construction, both individual and commercial. We are trying to bring the standards we have in construction up to the standards of Western countries. As far as regional education is concerned, we will continue to make changes that will lead to its improvement," clarified Prime Minister Fiala.
"We need and want to use the year and a half until the end of the term, to make as many changes as possible in accordance with the recommendations of experts and the National Economic Council of the Government for the benefit of people and companies, for the prosperity of the Czech Republic," said Prime Minister Fiala and thanked the members of NERV for their work.
The government also decided on Establishment of the Government Council for the Memory Agenda and approved its statutes. The Council will become an advisory body to the Government for a systematic and conceptual approach to various aspects in the field of historical memory, establishing a medium- and long-term framework for the use of relevant subsidy titles. It will have a maximum of 20 members from the state and public administration, representatives of the civil and professional community and academia.
vlada.gov.cz/gnews.cz-jav_07
