Press Advisories

18. 2. 2010 10:09

Ways out of the crisis – 38 common measures of the government, trade unions and employers

At its Monday's meeting the government took cognizance of the Proposal for Short-term Measures for Way out of the Crisis and Solutions of its Consequences. At the session of the Council of the Economic and Social Agreement of the Czech Republic held on 2 February 2010, the government agreed with its social partners on 38 items which were supposed to help the economic-social situation in the Czech Republic and to start the economic growth.

The material is a response of the government to the abating economic crisis and the state of public finances. It contains a package of tangible measures the implementation of which will reduce negative consequences of the crisis in a short time, stabilize economic-social situation and start the economic growth.

The purpose of the strategy is to identify the principal short-term and medium-term problems of the Czech economy in a professional and non-ideological way, and to outline the approach of the current non-political government. The objective of this document is to define the strategy of the Czech Republic on its way to overcoming the consequences of the global economic crisis or rather to surmounting consequences in the domestic economy. The government is aware of the fact that the time horizon of this task is far beyond its mandate; nevertheless, it considers necessary to define that strategy as a certain recommendation for the government appointed after the elections in May 2010.

The motive of the strategy was on the one hand the demand of social partners for such a document and on the other hand the efforts of the government not to waste time remaining to the elections. The mandate of that originally fine-month cabinet, the purpose of which was to lead the country to the early election, has recently widened as a consequence of the election cancellation. In compliance with its programme declaration, the government strives for non-political administration of the country; nevertheless, it does not mean that it may ignore main problems of our country. The government considers necessary not only to identify these problems but to take steps for their solution on the basis of a maximum political consensus.

Proposals for Measures

1. To improve the entrepreneurial environment it is necessary to create the system of "integrated control" (completion of works on the new legislation – e.g. the Control Act under the management of the Ministry of Interior of the Czech Republic).

Proposal for measures: To deepen cooperation of relevant supervisory bodies (tax offices, trade licence offices, the social security office, the Czech Trade Inspection Authority, the Czech Environment Inspectorate, the State Labour Inspection Office, the State Agricultural and Food Inspection, regional hygienic centres, health insurance companies, employment agencies and other bodies) including preparation of the integration/interconnection of the relevant information systems and databases in compliance with the valid legislation.

Deadline: continuously in 2010

2. To solve the problem of unemployment benefits misusing together with the existing work performance contracts – extensive tax evasion and unnecessary state expenditures (incomes resulting from work performance contracts are not subject to the levies of the health insurance and social security insurance.

Proposals for measures:

1. Implementation of control mechanisms in the framework of valid legislation;

2. Analysis of valid legislation focused on the balance, flexibility and security of employment relationships

Deadline: continuously in 2010

3. Preparation of the system "Tax Statistics" based on the processing and aggregation of tax returns and reports on insurance payments.

Deadline: June 2010

4. To solve the problem of misusing inter-concern (transfer) prices and provision of services within a group for tax reduction purposes.

Proposal f measures:

Introduction of control mechanisms in the framework of valid legislation (in connection with the above-mentioned point no. 1)

Deadline: continuously in 2010

5. To solve the problem of respecting the Act on Significant Market Force, in case of sales of agricultural and food products, and its misuse. (The Act no. 395/2009 Coll. as amended, effective as of 1. February 2010).

Deadline: in compliance with the effect of the Act no. 395/2009 Coll.

6. To analyse and to prepare measures for the gradual reduction of the difference between tax rates of self-employed persons and employees (the Ministry of Finance is preparing a material for the meeting of the government "Harmonization of the Tax Base and the Premium")

Deadline: continuously in 2010

7. To assess effectiveness and usefulness of the expenditure programmes of the state budget, to audit the economical use of financial means of the state budget (see also the Government Resolution no. 241of 12. March 2003 on the content and implementation of the audits of expenditure programmes of the state budget and the Government Resolution no. 768 of 30 July 2003 on the Report on results of examiner ´s assessment of audit reports concerning expenditures of the individual state budget chapters).

Deadline: continuously in 2010

8. The Minister of Finance should exert efforts focused on the bank sector of the Czech Republic and to strengthen trust in it, and to improve access to commercial (and also consumer) credits.

Deadline: continuously in 2010

9. Submission of thesis "Pro-export Strategy for 2010 – 2016".

Deadline: March 2010

10. To increase the insurance trust and the authorized capital of the EGAP (Export Guarantee and Insurance Corporation) by 1 billion CZK

Deadline: March 2010

11. To increase the authorized capital of the ČEB (Czech Export Bank) by 919 million CZK + 100 million CZK for interest differences of export credits

Deadline: March 2010

12. To change conditions for investment incentives drawing with regard to the dramatically changed economic situation – ongoing economic crisis. It is possible to solve it through the legislative amendment of the Act no. 72/2000 Coll. on Investment Incentives and through the amendment to the Regulation of the Ministry of Industry and Trade no. 250/2004 Coll. In this regulation the sectors in which investment incentives cannot be provided are specified.

Deadline: continuously in 2010

13. Based on the analysis aimed at necessity of rental flats construction to prepare realistic strategy of rental flats construction, reconstruction and modernization of flats for seniors and low-income groups of inhabitants (social flats) with the support of the state.

Deadline: continuously in 2010

14. The government will support completion of construction of the III. and IV. block of the nuclear power station Temelín and the complex reconstruction of the power station Prunéřov II (3x250 MW)

Deadline: continuously in 2010

15. To create conditions for adoption of final decision regarding improving of shipping conditions on the Elbe (Labe) river through the construction of weirs Přelouč and Děčín – construction of weirs on the Elbe (Labe) river (see also the Resolution of the Government no. 337 of 23 March 2005).

Deadline: continuously in 2010

16. To reduce the promotion of photovoltaic power stations (amendment to the Act no. 180/2005 Coll. on the promotion of electricity production from renewable energy sources and on amendment to certain acts – the amendment is in the legislative process).

Deadline: 30 June 2010

17. To speed up and simplify drawing of financial means from structural funds, to shorten administration process, to ensure co-financing and using financial means (see realization of measures pursuant to the material of the Ministry for Regional Development: "Analysis of Structural Funds Using for the Response to the Consequences of the Economic Crisis").

Deadline: 30 June 2010

18. To work out an analysis of the co-called "kurzarbeit" (to work part-time)

Deadline: 30 June 2010

19. To continue programmes "Training is a Chance" and "Educate yourselves" and to ensure earmarking of financial means for them.

Deadline: 30 June 2010

20. The fight against corruption – consistent implementation of the updated Strategy of the Government in the Fight against Corruption for 2006-2011 pursuant to the Government Resolution no. 329 of 23 March 2009.

Deadline: continuously in 2010

21. Reduction of the administrative and financial burden of entrepreneurs. RIA (Regulatory Impact Assessment) Process – Removal of administrative barriers using the method of the regulatory impact assessment of newly submitting legal regulations concerning the entrepreneurial environment – see the annex to the Government Resolution no. 877 of 13 August 2007 and the Government Resolution no. 927 of 22 August 2007.

Task: to continue the RIA process

Deadline: continuously in 2010

22. Assessment of selected problem legal regulations of the environmental area related to the manufacturing and entrepreneurial sphere (EKOAUDIT) – identification of problem areas of selected legal regulations relating to environment – continuation of the process in compliance with the Government Resolution no. 1401 of 2 November 2005.

Task: Not to submit such bills beyond the EU legislation which could markedly jeopardize competitiveness of the Czech economy (e.g. so-called Geological Act, Clean Air Act etc.).

Deadline: April 2010

23. Submission of the Act which amends certain acts in connection with the reduction of the Administrative burden (amendment to 8 acts, 6 regulations is proposed to be revoked) – amendment to the Consumers Protection Act, Civil Code, Act on the Czech Trade Inspection, Act on technical Requirements for Products, Act on Metrology, Trade Act, etc.

Deadline: 30 June 2010

24. Through the amendment to the Waste Act and the amendment to the Regulation of the Czech Statistical Office on the Programme of Statistical Surveys for 2011 to remove unnecessary duty of entrepreneurs to report data on waste.

Deadline: March 2010

25. Consistent control of consumer credit provision by non-bank subjects (the Act on Consumer credit is in the legislative process, it is a transposition of the EU Directive)

Deadline: 30 June 2010

Fight against usury

Deadline: 30 June 2010

26. Use of financial means from the European fund for adaptation to the globalization (European Globalization Fund) for the fight against consequences of the economic crisis.

Deadline: continuously in 2010, 2011

27. Transport and transport infrastructure – to work out a concept of funding of the transport and transport infrastructure through financial resources as from 2011. To update the schedule of the transport infrastructure development in the context of the particular PPP (Public-Private Partnership) projects of the transport infrastructure. To examine costs of new projects over 300 million CZK financed from the State Fund of Transport Infrastructure.

Deadline: continuously in 2010

28. To submit a consolidated plan of tourism promotion for the discussion.

Deadline: 30 June 2010

29. Shortening of the benefits administration process in case of pension insurance and health insurance

Deadline: 30 June 2010

30. Rules for remuneration and rules for execution of property rights on behalf the state (see the Government Resolution no. 1532 of 7 December 2009 – establishment of the inter-ministerial commission for creation a general model of remuneration of management and members of bodies of trading companies with the property participation of the state over 33 %, including state-owned companies.

Deadline: March 2010

31. Submission of an analysis of the social services system, in particular its funding.

Deadline: 30 June 2010

32. Increase in the capacity of employment agencies and projects in the context of increasing unemployment – organizational measures.

Deadline: continuously in 2010

33. To include the issue of agricultural subsidies among the priorities of the European policy – diplomatic offensive

Deadline: continuously in 2010

34. Use and further development of the portal "Farmer" for the simpler administration of agricultural subsidies on the side of provider and claimant – project management.

Deadline: continuously in 2010

35. Creation of conditions for speeded up drawing from the Operational Programme Environment, in particular solution of problems connected with waste water treatment plants of big conurbations.

Deadline: continuously in 2010

36. Speeding up of drawing means of the "Green Light to Savings" programme – assessment and adaptations of the subsidy programme, if necessary.

Deadline: 30 June 2010

37. To respect needs of the Czech industry in realization of great investments projects.

Deadline: continuously

38. Social partners support the proposal for Updating the State Energy Strategy worked out by the Ministry of Industry and Trade and they recommend its adoption to the government.

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