The Czech Republic has been ranked the 22nd most economically free country in the world out of 165 nations, according to the Economic Freedom of the World Index released by the Canadian Fraser Institute. The report, shared by the Institute of Liberal Studies, indicates a decline for the country, which dropped four spots compared to last year. The overall level of economic freedom in the Czech Republic has also diminished in absolute terms, reflecting a broader global trend.

The index, published annually since 1996, is based on data from 2022 and evaluates countries across five key areas: government size, rule of law, international trade, regulation, and monetary and inflationary environments. This year, Hong Kong retained its position as the world’s most economically free country, while Venezuela ranked last.

According to the report, the Czech Republic saw slight improvements in four of the five assessed categories but suffered significant setbacks in its inflation environment. Inflation surged in 2022, with the country recording an annual average of 15.7%, contributing to its lower ranking.

“Since 2016, economic freedom in the Czech Republic has been steadily declining, with the exception of 2021, the second year of the pandemic, when there was a slight increase in freedom compared to the first pandemic year. This trend is concerning,” said Martin Pánek, director of the Institute of Liberal Studies, in a statement about the latest results.

Despite the slip, the Czech Republic remains one of the more economically free countries in Central Europe. Germany leads the region, ranking 16th globally, while Austria follows closely behind the Czech Republic in 23rd place. Other regional neighbors include Slovakia (45th), Hungary (55th), and Poland (70th).

The Economic Freedom of the World Index underscores the link between economic freedom and prosperity. According to the Institute of Liberal Studies, countries with higher levels of economic freedom enjoy greater prosperity, higher life expectancy, and broader civil liberties. In nations ranked in the top quarter of the index, only 1% of the population lives in extreme poverty (on less than $1.90 per day), compared to 30% in countries in the lowest quarter. Life expectancy also differs dramatically, with a 15-year gap between the most and least economically free countries.

“Where people are empowered to make their own choices and pursue their own happiness, they tend to live longer, healthier, and more prosperous lives,” Pánek added.

Source: CTK

The Regional Court in Brno has ruled in favor of the Office for the Protection of Competition (ÚOHS), finding no procedural errors in its cancellation of the Ministry of Regional Development’s (MMR) tender for the digitisation of the construction process. The court’s decision, announced today, confirms the OPC’s actions were justified, following a complaint lodged by System Servis, a company that had challenged the contract.

System Servis claimed its exclusion from the tender process was unjust, despite the MMR arguing otherwise. The court ruled that System Servis was indeed eligible to submit its proposal, stating that it was “at least theoretically possible” for the company to participate in the contract. System Servis, often referred to by former Regional Development Minister Ivan Bartoš as a “printer supplier,” had been criticized for not participating in the tender initially. However, the court emphasized that the company is a legitimate IT contractor with a portfolio of relevant experience.

The court’s decision revealed several issues in the MMR’s handling of the tender. Among the most critical were the unclear conditions surrounding the use of software for the project, as well as vague deadlines. These uncertainties, the court ruled, made it difficult for contractors to fully assess their ability to meet the requirements of the tender. Additionally, the ministry’s failure to launch the procurement process early enough was flagged as a contributing factor to the time constraints placed on potential bidders.

The tender in question, titled “Ensuring the Digitisation of the Construction Procedure,” was announced in March 2023 by the Ministry of Industry and Trade. System Servis had filed its complaint after raising multiple objections to the tender process. The company, despite not being directly involved in the original contract, argued that the unclear terms and conditions effectively prevented fair competition.

According to the ÚOHS, the Ministry of Regional Development failed to provide contractors with essential information necessary for completing the contract. For instance, specific delivery deadlines were never set, leaving contractors unsure of how to meet the required timeline. Moreover, the MMR placed conditions on the software that could be used but did not disclose whether it would be compatible with the contract until after it was signed—a key criterion for potential bidders. Despite suggestions from contractors, the ministry refused to amend these conditions.

The court also highlighted the ministry’s delays in initiating the procurement process, pointing out that although the need for a new information system had been known since at least 2021, the tender was not announced until 2023. The court attributed these delays to time constraints that affected the contract, a situation exacerbated by the ministry’s failure to act sooner under the leadership of former Minister Klára Dostálová. A previous contract for digitising construction proceedings was cancelled by Bartoš, who initiated a new tender.

The court’s findings included feedback from 23 suppliers in the sector, many of whom cited the contract’s terms and conditions as reasons for not participating in the tender. The ÚOHS’s survey of these suppliers was found to be sufficiently representative by the court.

The ruling comes as the government prepares to address the future of the construction digitisation process. Transport Minister Martin Kupka is set to present an analysis to the government on Wednesday, outlining options for either continuing the development of the existing system or starting over with a new tender. Kupka has taken on the responsibility for overseeing the project following Prime Minister Petr Fiala’s recommendation to dismiss Bartoš due to ongoing issues with the digitisation system.

Kupka, along with new Regional Development Minister Petr Kulhánek, is also working on legislative changes that could allow both the current and any new systems to operate concurrently. This would enable construction documentation to remain in digital form, streamlining the process.

Meanwhile, the opposition Pirates Party, led by Jakub Michálek, has called for a pragmatic approach. Michálek stressed the importance of completing the digitisation process without further delay, warning that starting from scratch could push the project’s completion to 2028. “We advocate for a ‘partial bypass,’ allowing both systems to function side by side temporarily. This would ensure that construction documentation remains digital, avoiding the slow and cumbersome process of manual transfers between authorities,” Michálek said in a press release.

The government’s decision on how to proceed with the digitisation project is expected to be a pivotal moment in determining the future efficiency of the Czech Republic’s construction processes.

Source: CTK

Transport Minister Martin Kupka (ODS) is set to present an analysis to the government on Wednesday that outlines two possible paths for the future development of construction management systems. The government will then decide whether to revamp the existing digital systems or start anew with fresh development. Kupka emphasized that the analysis will weigh the advantages and disadvantages of both options. Currently, he is working alongside Regional Development Minister Petr Kulhánek (STAN) and experts on a legislative amendment that would allow for the simultaneous use of both the old and new construction management systems.

Kupka’s analysis will focus on the technical state of the current systems and the procurement process behind their creation, where several errors might have occurred. “We now have more detailed information, both from the Office for the Protection of Competition (ÚOHS) and from a recent court ruling that confirmed the findings of ÚOHS,” Kupka stated. The court ruling addressed procurement issues with the Ministry of Regional Development (MMR), leading to the cancellation of certain processes.

In October, the Regional Court in Brno upheld the decision of ÚOHS, which annulled an MMR tender for the digitalisation of construction processes. The tender was deemed problematic due to vague conditions surrounding the use of standard software. Companies competing to design the system were unclear on whether they could integrate existing programs or if they were required to build the system entirely from scratch. Additionally, the ministry failed to specify approval timelines, making it difficult for contractors to plan their work.

Kupka also highlighted updates from the Digital and Information Agency (DIA) concerning compliance with the Public Administration Information Systems Act, noting that MMR had violated the law by not submitting the systems for required approval before launch. The lack of this critical step occurred during the tenure of former Regional Development Minister Ivan Bartoš (Pirates), who did not seek DIA’s formal approval.

“This is the situation we face as we enter tomorrow’s government discussion. The key issue is the absence of a comprehensive description of how the system should function. A clear analysis of processes is crucial, and we need to ensure the final objective is well-defined. This is a basic prerequisite for any further progress,” Kupka remarked. He refrained from expressing a preference between modifying the existing systems or restarting the digitisation process entirely.

The digitisation of construction processes was launched alongside the new Construction Act on July 1, but officials and developers have reported various operational issues since its inception. Former Minister Bartoš was dismissed by Prime Minister Petr Fiala (ODS) in late September due to the slow pace of digitisation, leading to the departure of the Pirates from the government.

Source: CTK