Final Word from Monday, September 18, 2023

Pres. Petr Pavel signed a major amendment to the labor code into law yesterday, just four days after it was delivered to him. The head of the Castle's domestic-policy department, Tomáš Lebeda, complained in Právo on Sept. 11 that Pavel had only three days to decide on the pension amendment for it to take effect on Sept. 1 and needed more time to evaluate the economic impact. He then signed it the next day. Now Pavel has signed another key bill with the same rush. Yet if he and his economic advisers had spent more time on it, they might have concluded that the Fiala government is tightening the rules for "contracts for work" at the worst possible time. Manufacturers, builders and others are starting to complain about a sharp decline in orders, and this is inevitably going to lead to layoffs. Among the first to go will be those on "contracts for work," because they'll suddenly be much more expensive. If low unemployment has been a problem, high unemployment will be even more of one. [ Czech Republic construction Petr coalition austerity package ]