The National Economic Council of the Government (NERV) has submitted a proposal to the government, including 37 measures aimed at long-term sustainable economic growth. The proposed package targets areas such as the labor market, education, public administration, housing, and investment. Prime Minister Petr Fiala’s cabinet is currently analyzing the proposal, with some measures set to be implemented or at least initiated before the end of his electoral term.
“Our goal was to bring interesting tips that would be budget neutral or whose costs would be meager. We wanted to inspire politicians. It depends on them what combination of solutions will be chosen,” said NERV member and economist Dominik Stroukal.
NERV’s document, which presents the 37 measures in detail, points out that these are primarily systemic. Their implementation will require some time, and their effect may start to manifest only in the horizon of several years or decades.
NERV further pointed out that the proposed solutions must have political support from the current government and future governments to implement them.
Regarding the labor market, the document notes that the Czech Republic has been facing a long-term labor force shortage. Considering the demographic development, the problem will deepen. The council, therefore, brings proposals on how to open the Czech labor market to qualified workers from abroad.
NERV also suggests making the labor code more flexible, reducing levies from low wages, changing the benefit system to motivate more people to work, or reducing the number of people in debt so that they can enter the legal labor market and not operate in the gray zone. According to NERV, effective health prevention, which would reduce employee absences, would also improve the situation in the labor market.