The list of measures has been updated continuously. Last update April 1, 2020.
The current plan to support employment will not prevent companies with significant loss of revenue from reducing employment. This is especially critical in Regime B, which applies to many companies with no or very little revenue due to needed government actions to contain the virus.
The spread of the coronavirus has caused an economic crisis as both companies and individuals have decreased demand on a wide range of a product and service. This crisis has been exacerbated by government measures aimed at restricting the rapid growth of infection and loss of life.
Our view is that the strict containment measures adopted by the Czech Republic are necessary not only to contain the spread of disease in order to prevent a breakdown in the healthcare system and consequent greater loss of life, but also to avoid the longterm economic damage a significant outbreak could cause. Therefore, we propose the government pursue immediate economic measures that will mitigate the damage of virus and its containment and then prepare regulatory changes that can make recovery swifter and more sustainable. 1) Pass some form of the Ministry of Social Affairs proposal by March 20. 2) Consider introducing renewable time limits and a salary cap for government contributions. 3) Consider moving from a kurzarbeit-style program to direct company payments if the containment period lasts more than a month.