The National Economic Council of the Government (NERV) has put forth a comprehensive proposal aimed at fostering long-term sustainable economic growth, encompassing 37 targeted measures spanning various sectors. Prime Minister Petr Fiala’s administration is currently evaluating the proposal, with plans to implement or initiate several measures before the end of their term.

The proposed package, meticulously crafted by NERV, focuses on key areas vital to economic development, including the labor market, education, public administration, housing, and investment. According to Dominik Stroukal, an economist and NERV member, the goal is to provide cost-effective solutions that inspire policymakers to enact meaningful change without imposing significant financial burdens.

NERV’s proposal, outlined in detail, emphasizes the systemic nature of the measures, acknowledging that their implementation will require time and may only yield tangible results over the course of several years or decades. Crucially, NERV underscores the importance of garnering political support from both the current government and future administrations to ensure the successful execution of these initiatives.

Addressing the pressing issue of labor market dynamics, NERV highlights the long-standing challenge of labor force shortages in the Czech Republic, exacerbated by demographic trends. To mitigate this, the council recommends strategies to attract qualified workers from abroad, alongside proposals for enhancing labor market flexibility, reducing levies on low wages, and reforming the benefit system to incentivize workforce participation.

Furthermore, NERV advocates for measures aimed at alleviating debt burdens and promoting legal employment opportunities, thereby curbing informal labor practices. The council identifies effective health prevention as a key component in reducing employee absenteeism and enhancing overall labor market efficiency.

As the government deliberates on NERV’s proposal, the focus remains on crafting policies that not only stimulate immediate economic growth but also lay the groundwork for sustained prosperity and resilience in the face of future challenges. The collaborative effort between policymakers and economic experts underscores a commitment to fostering an environment conducive to innovation, productivity, and inclusive growth for all citizens.

Article by Prague Forum