Since our entry into the European Union in 2004, there has been a significant increase in the wealth of the average citizen of the Czech Republic. According to the current economic analysis commissioned by Česká spořitelna, real GDP per capita increased by more than 40%. The average household consumption also increased by 22%. This testifies to the improved economic situation of the citizens, who have been badly affected by the pandemic and high inflation in the meantime.
The analysis points out that if the Czech Republic had not become part of the EU, the economic indicators would have been significantly worse. The appreciation of membership is evident not only at the macroeconomic level, but also in the everyday life of citizens. Membership in the EU has brought significant economic benefits to the Czech Republic, manifested, for example, in an increase in the standard of living, which is now close to the standards of Western Europe.
“Greece has sunk to the very bottom. Other countries have also stagnated, an example is Italy,” says Petr Zahradník, analyst at Česká spořitelna and member of the Government’s National Economic Council.
Differences in regions
However, regional differences still exist. While the South Moravian Region shows the greatest increase in the standard of living, the Karlovy Vary Region and the Ústí Region still lag behind. However, the Czech Republic still ranks among the countries with the lowest level of unemployment – it shows the lowest rate in the entire EU. The unemployment rate dropped from 6% to 3%.
“Some regions have not made any progress compared to the EU average in those 20 years. In particular, the Karlovy Vary Region and the Ústí Region are not sending positive signals. The richest region is still Prague,” says Petr Zahradník.
The Czech Republic is proud of its import and export of goods
“Export and import of goods? So here we are the European champion. There is no country where the degree of dependence is greater. We give it a high added value,” says the Gardener. For example, the Polish market has 2 times lower dependence than the Czech Republic.
The Czech Republic also benefits from the EU budget, which annually brings it a net income in the order of tens of billions of crowns. These funds are mainly used for cohesion and agricultural policy and centrally managed programs such as the Horizon science and innovation programme.
“Since 2004, we have received a total of over one trillion crowns from European money. Two thirds of these funds were used for the purposes of cohesion policy, i.e. for the development of individual regions,” describes Petr Zahradník.
No columns at the borders
The Schengen area allows EU citizens to travel freely without border controls and this has positive effects on labor mobility and tourism. The EU Roaming Regulations, introduced in 2017, significantly reduce the cost of mobile communications abroad, which is another example of the benefits associated with membership of the Union. More than 56,000 Czechs regularly commute abroad for work. Most to Germany, Austria, the Netherlands and Slovakia.
Thanks to the EU Roaming Regulation, since 2017, citizens of member countries have been using free roaming services for calls, SMS messages and can use data services abroad in the territory of the Union without additional charges.
No unnecessary fees
“Thanks to this regulation, for example, the volume of transferred mobile data increased rapidly during the summer months, when Europeans spend time on vacation abroad. Compared to the summer of 2016, the volume of mobile data transferred increased 44 times in the summer of 2023.” adds David Navrátil, chief economist of Česká spořitelna.
Another advantage is study programs such as Erasmus, which support international educational exchanges and contribute to better employability of young people on the labor market.
The challenges for the future are not just about WHAT2
“In the Czech Republic, a relatively large number of citizens die from air pollution,” says the Gardener. According to data from the RAINBOW Movement from 2018, this is approximately 11,000 people each year. The largest share of deaths is caused by microscopic dust, which causes, for example, chronic and acute diseases of the respiratory system, heart and blood vessels. The situation is worst in Ostrava, Frýdecko-Místek, Karvinsko, and Třinec.
The main solution remains the adoption of all Green Deal measures. “Away with dismissive approaches to the Green Deal. We have to achieve realizable parameters,” says the Gardener. Green and digital transformation will be a big challenge for EU states in the coming years.
