Czech President Petr Pavel launched a sharp critique of Prime Minister Petr Fiala’s government during remarks at the “reVize Česka” (ReVision Czechia) summit, accusing it of contributing to some of the country’s most pressing problems through poor planning and a lack of strategic direction.
Pavel focused particular ire on the government’s attempt to digitize construction proceedings, referring to the rollout of a digital system for handling building permit applications and related administrative processes.
The Czech president claimed the rollout was premature despite widespread warnings. “It turned out to be a great disgrace,” he said. “Although the government was warned from a number of sides that it was not ripe to be launched, it eventually resulted in great confusion, which led to the fact that the building authorities are now overwhelmed, but also created great chaos both on the part of individual builders and on the part of companies that still do not know how to get out of it.”
As reported by Echo24, Pavel warned that the consequences are far-reaching, including a slowdown in construction, especially in transport infrastructure, a rise in housing prices that hits the younger generation hardest, and a measurable drop in economic efficiency. “The productivity of the construction sector has decreased by a quarter over the last 10 years, which certainly cannot be described as an acceptable situation,” he said.
The president also criticized the government’s failure to update the State Energy Policy, calling it a source of growing uncertainty. “We are talking about moving away from fossil fuels, especially coal, but we do not have clear steps to take until we are able to achieve most of the energy from nuclear or renewable sources,” Pavel said. He suggested that gas-fired power plants may be needed as a transitional solution, but noted that they are “practically not being discussed.”
Turning to the Dukovany nuclear power plant expansion, Pavel voiced concern over foreign interference, particularly from France. As Remix News reported last week, the European Commission has formally asked Czechia to postpone finalizing a contract with South Korea’s KHNP for the construction of two nuclear reactors at the power plant, citing concerns over foreign subsidies that could violate EU internal market rules.
Some Czech officials, however, believe the move is motivated by the fact that the competing French company, EDF, lost the bid.
“The efforts of France, not only EDF, but the whole of France to intervene very significantly in the process may lead not only to a relatively large delay, but in the worst case to the freezing and paralysis of the entire project,” he warned. He said such a scenario would not only cause billions in losses but also raise “existential problems as to where to get energy from in the future.”
On fiscal matters, Pavel condemned the abolition of the super-gross wage tax as fiscally reckless. “It was canceled without saying how the hundred billion that flowed out of the budget would flow back into it. And we are still struggling with these consequences today,” he said, adding that the next government will need to find the political courage to take unpopular decisions.
Pavel concluded by noting broader challenges for the Czech business environment, stating that the country has not done enough to support the creation and growth of domestic companies. He proposed reforms such as changes to employee share ownership schemes as one way to foster a more dynamic economy.
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