Government Wants to Make Czechia One of the 10 Strongest Economies in Europe

The Czech government has unveiled an ambitious plan to place the country among the top ten European Union nations by gross domestic product (GDP) per capita by 2040.

Currently ranked 14th, the Czech Republic aims for significant economic growth through the recently approved Economic Strategy.

Key Pillars of the Strategy

The strategy, presented by the new Minister of Industry and Trade Lukáš Vlček (STAN), focuses on four main areas: human capital development, strategic infrastructure, high-value industrialization, and enhanced financing options.

“This strategy will not be another unfulfilled document,” Vlček assured.

The plan emphasizes the importance of education, particularly in STEM fields (science, technology, engineering, and mathematics), which are critical for the country’s future economic growth. The government also seeks to strengthen ties between companies and educational institutions to create innovative study programs that better align with market needs.

In terms of infrastructure, the strategy outlines improvements in transport, energy, and digital infrastructure. These upgrades will be coupled with investments in sustainable energy and technological innovation to boost competitiveness and reduce environmental impact.

The plan also highlights the need to develop the capital market to improve companies’ access to financing, reducing their reliance on traditional bank loans. “This includes venture capital support for innovative start-ups,” Vlček added.

Business Skepticism and Concerns

Despite these proposals, many business associations express reservations. The Union of Industry and Transport’s Vice President, Martin Jahn, voiced concerns about the lack of clear deadlines and the strategy’s practical implications.

“What matters is whether these goals will be reflected in concrete government actions,” Jahn said. “The Czech Republic has plenty of strategies, but the challenge is in achieving real, measurable results.”

Union of Industry President Jan Rafaj also pointed out the timing of the strategy, noting that it arrives just a year before the government’s term ends. “This could easily become historical material by next year,” Rafaj warned, citing the absence of opposition support for the plan.

Housing and Decarbonization Issues Overlooked

Another area of concern is the strategy’s omission of housing affordability. According to Lenka Janáková from the Chamber of Commerce, the high cost of rental and owner-occupied housing is a major obstacle to labor market mobility.

Janáková also criticized the plan for not sufficiently considering the impact of decarbonization on energy and industry.

“The strategy should ensure that the path towards meeting climate goals does not undermine the competitiveness of our energy and industrial sectors. Without this, the Czech Republic cannot maintain its citizens’ standard of living, let alone meet the EU’s climate targets,” she added.

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