analysis
NEW GOVERNMENT
– NEW HOPES? The House of Deputies of the Parliament of the Czech Republic gave the coalition government of the Czech Social Democratic Party, the ANO 2011 Movement and the Christian Democratic Union – Czechoslovak People’s Party a vote of confidence on 18 February 2014, approving its policy statement. The new Government can be characterized as centre-left one containing both socially-liberal and conservative political bodies; also because the Communist Party, in spite of previous fears, remained outside the structure of the cabinet. The Government pledges itself in its policy statement to guide the Czech Republic, on the basis of a socially and environmentally oriented market economy, towards prosperity, and is to seek to maintain social cohesion in the country. The Government states to actively “strive for a European Union which is politically influential and capable, economically competitive, a defender of democratic values and promoter of social cohesion and human dignity” and wishes to operate in the European area as a comprehensible and credible partner. It is a clear signal of diversion from rather eurosceptic and euro-reluctant policy of the previous centreright governments. It will also “actively strive to create conditions conducive to the adoption of the euro”. This all, of course, also depends on the upcoming development in the eurozone and should not mean resignation on national interests. The Government seems also to be more environmentally aware, and another difference from the previous is more stress on the development of civic society and equal opportunities. One of the most important tasks of the new Government is to overcome the existing longlasting stagnation of the economy and push it to a sustainable economic growth. Therefore it accents support of free enterprise, promises to restore the system of incentives for foreign and domestic companies with a key role to be played by CzechInvest agency, and improve the system of promotion of goods and service exports. A broader public support of research, development and innovation is also planned to boost competitiveness of the economy. The entrepreneurial sector needs very urgently that the Government releases blocked public investment the deadlock of which heavily struck especially construction and project industry during last several years. The Government
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promises clearer rules and terms in the zoning, building permitting, land procurement and EIA processes aided by introducing a new law on linear structures. Literally in the last minute, the Government will attempt at a maximum efficient exhaustion of EU funds under programs for the 2007–2013 programming period, while aiming at a better preparation for the new 2014– 2020 period. The ailing efficiency of public investment should be recovered by the so far missing state expertise for the entire field of public-procured capital construction. The main accent in transport infrastructure is set on the construction of motorways and expressways. It is only a little wonder that the policy statement heralds an uncompromising fight against all forms of corruption and related manifestations that, after all, formed in this or that way a decoration of political programmes of almost all previous governments. But if the Government follows and even enhances the initial steps to combat corruption made by the former Mr. Nečas’s Government, it may really improve the atmosphere both in the Czech politics and the economy. Also the promises to reduce the number and complexity of official acts encumbering citizens, strengthen law enforcement and avoid tax evasion and wastage in the redistribution of the taxes sound positive. On the other hand, little space is devoted to the simplification of the Czech tax system which belongs to the most complicated and timeconsuming among OECD countries. The policy statement shows some tension between projected spending and the pledge to keep Maastricht fiscal criteria, especially the maintenance of the government deficit below 3% of GDP. It will be demanding to keep the budget target in the condition of reduction of VAT on some commodities, higher government budget for social services and termination of reduced indexation of pensions. The statement calls for changes in the pension system that
should establish a long-term stable structure and the proportionality of benefits granted, but it is not documented how this objective could be attained. As it showed more times with previous cabinets, words are words no matter how they sound. Only real development can show to what extent the new Government will be successful in keeping its political promises. Considering the state of the society and economy, there are many reasons to hold thumbs up to its good intentions. Anyway, it will be under sterner and less patient public control than any of its predecessors. Emanuel Šíp ■ Partner, Allied Progress Consultants Association český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz
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