The OECD assessment and recommendations on the main economic challenges faced by the Czech Republic are available by clicking on each chapter heading below.
Economic conditions and policy challenges
Growth has picked up in the Czech Republic but challenges need to be addressed in a broad range of policies for real convergence to be sustained in a more growth friendly environment: i) fiscal consolidation, ii) successful entry to the euro area, iii) improving policy towards business and, iv) improving the labour market and increasing skills.
Fiscal policy and public-expenditure reform
Momentum on fiscal reform needs to be boosted; in particular faster progress in pension and health reform is required. Procedures in extra-budgetary funds and financing sub-national governments also need attention.
Of special interest: The fiscal reform programme (pdf file)
Policy for a smooth entry to the euro area
The euro-entry strategy is generally sound but communication of the inflation target needs to pay close attention to the interpretation of the price stability criterion.
Of special interest: Fulfilling the Maastricht criteria (pdf file)
Read also ECO Working Paper 392: Enhancing income convergence in Central Europe after EU accession
Improving policy towards business
There have been steps to increase co-ordination in business policy, but key specific issues still need to be tackled in order to improve business environment. Competition issues remain in some network industries.
Of special interest: The legal environment for business (pdf file)
Improving the reallocation of labour
Labour market performance can be improved by increasing mobility and skills, addressing the poverty traps, reducing the tax burden on labour, and enhancing incentives to hire. Further integration of the Roma into the labour market is needed.
Of special interest: Tackling inactivity traps and increasing mobility (pdf file)
Immigration policy: Addressing the needs of an ageing labour force
While immigration policy is still in the making, a more open approach to immigration could bring increased benefits.
Of special interest: Immigration policy: still in the making (pdf file)
Sustainable development in the Czech Republic
A more economic approach to further reduction in greenhouse-gas emissions and air pollution is needed.
Of special interest: Policies shaping environmental outcomes (pdf file)
The complete edition of the OECD Economic Survey for the Czech Republic is available from:
