Open letter of SP CR and KZPS to the government of the Czech Republic

Open letter of SP CR and KZPS to the government of the Czech Republic
Open letter of SP CR and KZPS to the government of the Czech Republic

Today, the presidents of the Confederation of Industry and Transport of the Czech Republic and the Confederation of Employers’ and Business Unions of the Czech Republic sent the following open letter to the government of the Czech Republic:

Dear Mr. Prime Minister, Dear Deputy Prime Ministers, Dear Ministers and Dear Ministers,

We are turning to you urgently as representatives of the largest employers’ unions in the Czech Republic in the form of an open letter with the urgency of perceiving the seriousness of the current situation and the risks for the further development of our economy, including the impact on social stability. For several months now, we have been drawing attention to the need to solve the economic situation, the risks associated with prices and securing energy supplies, and the need for quick measures for companies as well. Despite a number of meetings, there is no effective response to our calls from the MPO and the government. Unfortunately, this causes great tension between companies and risks for further economic and social development. Dozens of other companies, not only from our member base, contact us daily, confirming the effects of impending negative scenarios and demanding that we re-emphasise the seriousness of the situation to the government and negotiate measures that will help the industry in the Czech Republic to overcome the current, but especially from the point of view of future development, critical situation.

As you know, at the same time, we have always tried to supplement our critical assessment of the situation with proposals for constructive cooperation and concrete measures, some of which have been implemented with a delay and a number of them are still being worked on. So far, unfortunately, no measures have been taken by the government for companies that use gas. Specifically, the program under the so-called Temporary Crisis Framework, designed specifically for companies that have been most affected by energy prices, has not yet been approved by the government and notified to the EC. We considered the measures according to the Temporary Framework to be the necessary minimum, which should have been adopted a long time ago, following the example of Germany and France – i.e. for a certain amount of aid even without the condition of operating loss. Today’s statement by the Minister of Industry still does not mean the approval of the program by the government, and therefore not a clear date for the start of accepting applications for companies.

We would like to point out that the mood in society and in companies is getting worse and we cannot base ourselves only on the latest known financial statements, but also on the measures that companies must take and the subsequent multiplier effects on the economy, together with the differentiation of impacts on individual subjects. At the same time, companies try to take maximum measures to maintain cash-flow for further activity. They use as many cost-saving measures as possible, look for investment opportunities in alternative technologies or operational measures. Despite these measures, several times higher energy prices fundamentally affect the economy of companies. This manifests itself, for example, in limiting or disruption of planned investments, restrictions on operations and related problems in supply chains. If extraordinary steps are not taken urgently by the EU and the Czech Republic, the rise in prices will mean serious consequences for economic and social stability, including layoffs, further disruption of supply-customer chains and deterioration of the mood in society.

We are now in a situation where energy prices have gone beyond the realistic possibilities of industrial customers, which also requires extraordinary interventions in the current setting of energy pricing. We are therefore asking you to urgently submit specific measures in this area, including the possibility of capping energy prices, stating assumptions, compensation mechanisms and specific calculations of individual models, both for solutions at the EU level and for possible national solutions, approval of the program for companies according to the Temporary Framework and the adoption of specific regulations on short-term work.

We understand that with regard to the openness of our economy and the role of a number of neighboring countries in energy policy, including steps with negative consequences for the Czech Republic, it would be most appropriate to find a European solution. However, concrete measures need to be delivered as soon as possible. If it is not possible to find an agreement between the states as soon as possible and the meeting of the Council on September 9 does not bring a clear timetable for the implementation of a specific measure, then it will be necessary to proceed to an extreme national solution, which the government must have already prepared by that time in a form that does not endanger energy supplies and our the economy.

However, it is not possible to slack off in the steps in relation to ensuring energy supplies and to urgently complete a number of partial measures, including clearer and more transparent broader communication of basic crisis scenarios, the conditions of their course and possible measures and procedures in the event of supply restrictions.

We believe that our words will be perceived constructively and that our common goal is the maximum mitigation of serious economic and social impacts. We are ready to cooperate on specific measures and provide our expert team for consultations.

With respect

Ing. Jaroslav Hanák, incl

president

Union of Industry and Transport of the Czech Republic

and

Jan Wiesner, incl

president

Confederation of Employers’ and Business Unions of the Czech Republic

You can also download the entire open letter here.

The article is in Czech

Tags: Open letter KZPS government Czech Republic

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