The Organization for Economic Co-operation and Development released its annual and country aimed recommendation report for the Czech Republic. The OECD announced three key recommendations: economic growth and recovery, promoting competition, and labor market improvements. The OECD definitely sides with economic policy that was launched by the previous right-wing leaning government. The OECD appeals to the Czech government to set up an independent fiscal council that would take care of a fiscal restrictive budget. With regard to the economic policy, the OECD approves the current policy of the Czech National Bank that should hinder from the increasing deflation pressure. The OECD also stresses the necessity of structural reforms on which major political parties have to agree.
In terms of social policy, the OECD puts an emphasis on a reform of pension scheme that would motivate citizens to care for their pension income on their own. Further, the OECD advises the Czech Republic to reduce the parental leave and to provide a supply of high quality early childcare facilities. These steps would enhance the employability of women and increase the labor productivity.
1st February 2021