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2008 OECD Economic Surveys: Czech Republic 2008

image of OECD Economic Surveys: Czech Republic 2008

This edition of OECD's periodic survey of the Czech economy finds strong growth and manageable inflation. It addresses a number of key economic challenges including ensuring fiscal sustainability, improving the labour supply, and  harnessing globalisation.

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Ensuring fiscal sustainability: assessing recent tax and public spending reforms

Public finance reform needs to remain a policy priority, particularly in light of upcoming fiscal challenges stemming from population ageing. This chapter examines the reform package enacted in 2007 that notably introduced a flat tax rate on personal incomes. In addition, it considers the initial steps and further reform plans in healthcare and the current state of play in the longstanding issue of pension reform. The chapter also looks at the challenges in accessing EU funds under the highly decentralised system for administering the allocations.

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