Czech firms believe the business environment has been deteriorating

27-11-2003

Many Czech companies believe the business environment has been deteriorating. Bad laws, corruption and insufficient law enforcement are cited as the worst problems.

The Czech business environment is growing increasingly confusing, corruption among government officials is on the rise and the work of courts is worsening - this according to a survey among Czech businesses carried out by the Czech Economic Chamber. The firms addressed in the poll also said the tax burden was discouraging, but appreciated that it is now easier to get a bank loan.

The smaller the company, the more negative the answers, the Economic Chamber said about the poll. The number of businesses that consider the tax burden discouraging has grown to 56 percent this year from 36 percent a year ago, and 27 percent in 2001. However, this opinion prevails among 80 percent of the smallest firms.

More than half of the businessmen and managers asked perceive the current commercial code and other business-related laws as rather confusing, whereas less than four per cent of businesses think the laws are clear. Over 50 percent of respondents see a problem in the work of Czech courts and law enforcement, especially the creditor rights.

Most businesses think corruption has been firmly rooted in the business sphere and that the situation has been worsening. There was a marked difference between the view of corruption between small Czech firms and large foreign companies, which, according to observers, suggests that the state bureaucrats treat them differently.