Spotlight issue

16th March 2021 / Good governance / Legal Reform and Transparency

French court outlines new permanent/fixed establishment concept for digital sector

The court’s decision brings an entirely new view on a permanent/fixed establishment for companies operating in a digital sector. Will other EU member states also get inspired?


16th March 2021 / Good governance / Legal Reform and Transparency

New Czech foreign direct investment screening regime

On 19 January 2021 the Czech Parliament passed a new act that aims to strengthen the control of foreign direct investments in the Czech Republic (the "FDI Act"). The FDI Act has been introduced as a result of the new EU framework for the screening of foreign direct investments, which was adopted on 10 April 2019 and which applies from 11 October 2020. The FDI Act will have a significant impact on many strategic investments from non-EU countries. Rigorous and potentially retroactive screening of investments may deter potential non-EU investors from considering the Czech Republic as an investment target. The Ministry of Industry and Trade will be in a position to hit the brakes on in-scope transactions made by non-EU investors.

The FDI Act will become effective on 1 May 2021.

15th March 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Czech Republic: Retail sales weaker amid tighter restrictions

January retail sales fell more than expected in January given tighter pandemic restrictions, which were partially eased in December. The year-on-year rate showed a drop of 9.5% or -6.5% if adjusted for working days. Given the unfavourable pandemic situation, 1Q figures will remain weak

10th March 2021 / Economic policy / Macroeconomic Indicators, Economic Growth

Inflation continues to slow down gradually

Inflation slowed in February due to stagnant food prices but also due to a core component that does not include food prices. On the other hand, fuels prices became more expensive. The base effect will increase the annual inflation rate in the coming months. We still expect the CNB to raise rates in the last quarter of this year.

Strategic Directions for Czech Economic Policy

  1. 1) Transition to High-Tech Manufacturing
  2. 2) The City Campus as Idea Factory
  3. 3) Government Programs That Drive Innovation
  4. 4) Government as a Competitive Advantage

Advocacy Priorities for 2020-2022 
People, Technology, Infrastructure, Cities, Government


2020 Actions Recommended in Areas:

1. Immigration.

2. Adult (post-graduate) Education and Training.

3. Programming as the Required Language.

4. Private Research Investment.

5. Housing Plan.

6. Establishing Policy Objectives for Research.

7. Establishing Databases for Tracking Public Policy Outcomes.

8. Public Procurement as an Innovation Tool.

9. A Government Competitiveness Scorecard.


Read the document in English and Czech.

Policy pipeline

In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.

Members of the American Chamber of Commerce in the Czech Republic