The government of Czech Prime Minister Andrej Babiš has approved a package of changes that are intended to make voluntary pension savings more attractive from 2027, reduce administrative burdens for entrepreneurs, and strengthen the state's action against illegal psychoactive substances. The cabinet also discussed the results of Operation KORUND, the future of European funds, and a change in leadership at the Office for Foreign Relations and Information on Monday, August 24th.
Better Pension Scheme to Benefit Young People and Reduce Fees
One of the main topics of discussion was an amendment to the law on supplementary pension savings. The package, dubbed "Better Pension Scheme", is intended by the government to increase the attractiveness of the third pillar of pensions, especially for younger people, from January 2027.
The proposed changes are designed to reduce fees, enable more favorable returns on savings based on the client's age, and offer better conditions for children and people under 30.
For example, savers could withdraw up to one-third of their own contributions without penalty until the age of 36. The fee for investment management is also to be abolished, and the management fee should be capped at 0.5 percent.
The Ministry of Finance states that an average client could gain at least one million crowns more during pension savings thanks to the proposed changes compared to current regulations.
Operation KORUND Uncovers Widespread Violations of the Law
At the same time, the government addressed the illegal sale of kratom, kratom extracts, and products made from low-potency cannabis.
The Minister of the Interior, Lubomír Metnar, presented the results of Operation KORUND to the cabinet. This operation was carried out by the Czech Police in cooperation with Customs Administration, the State Agricultural and Food Inspection Agency, the Czech Trade Inspectorate, and regional public health offices from May to the end of June.
The aim was to check the availability of risky products and the ability of state institutions to respond to a rapidly changing market for new psychoactive substances. According to the government, the checks revealed a high degree of violations of legal regulations and led to the seizure of large quantities of illegally sold goods.
Prime Minister Andrej Babiš described the results of the inspections as alarming.
"The results of the inspections are truly frightening; we have reached a critical point with addictive substances. Unfortunately, our legislation does not give us the authority to take radical action against those who violate or circumvent the laws. Therefore, we must change the laws, and the Ministers of Health and the Interior must submit amendments by September 14th so that we can close down stores that are violating the law and selling substances that cause children and adults to end up in hospitals," said Babiš.
The current situation, according to the Prime Minister, is a consequence of the previous government's liberal drug policy.
The State Wants to Tighten Rules for THC, Kratom, and E-cigarettes
An interdepartmental working group has prepared sixteen legislative measures aimed at eliminating gaps in current laws and strengthening oversight of the market for psychoactive and addictive substances.
The proposals include reducing permitted limits for THC, prohibiting further processing of CBD as a raw material, or amending regulations for nicotine pouches, kratom, and electronic cigarettes.
The powers of public health offices and other control bodies should also be expanded. The state also wants to introduce more effective procedures for confiscating illegally sold products.
The KORUND operation, according to the government, also revealed shortcomings in the distribution of control, supervisory, and repressive powers among individual authorities. Consequently, seventeen additional organizational, technical, and coordination measures were implemented to improve cooperation between state bodies and ensure more effective enforcement of laws.
Business Package Aims to Reduce Bureaucracy
Another new initiative approved is the so-called Business Package, which includes eleven measures aimed at reducing the administrative burden on businesses and self-employed individuals.
The document was prepared by the Ministry of Industry and Trade in collaboration with an expert group focused on reducing administrative burdens. The changes relate to digitalization, the labor market, and the environment.
One of the main projects is the legal establishment of the Entrepreneur Portal, which will centralize public services for businesses in one place and connect with systems such as those used by tax authorities and health insurance companies.
A Unified Portal for Inspection Records is also planned, through which individual inspections can be recorded and better coordinated. The package also includes cooperation between state institutions and mobile operators to improve mobile network coverage.
Change in Leadership at the Office for Foreign Relations and Information
The government has approved a change in leadership at the Office for Foreign Relations and Information.
The current director, Vladimír Posolda, will be dismissed at his own request on September 30th. He will be replaced by Miroslav Toman, who will assume the position on October 1st.
Czech Republic Sets Priorities for European Funds After 2027
The government also discussed the initial strategic priorities of the Czech Republic for the new period of European funds after 2027.
According to the government, future European funds should provide more support for long-term development and competitiveness in individual regions. The Czech Republic intends to advocate primarily for investments in key infrastructure and projects with long-term economic benefits during negotiations with the European Commission.
Key priorities include completing strategic transport infrastructure, energy security and reducing energy intensity, healthcare, research and innovation, or supporting businesses with higher added value.
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