AmCham Statement on the Construction Act
We write on behalf of AmCham’s Real Estate Council to advocate a wider reform of land use policy, and to state our view that the proposal currently debated in the Chamber of Deputies will not achieve the changes necessary to achieve a leading innovative economy in Europe, and will place the country at a competitive disadvantage to Poland and Slovakia- particular after Slovakia’s digitization of their process and adoption of a new policy aimed at increasing investment into affordable housing.
The current administration has acknowledged the current construction process does not function effectively for the development of the country. Their solution has been to remove major public sector projects from the process, while leaving private investors and citizens subject to it. To achieve the economic prosperity needed to sustain major public projects after EU funding is reduced, greater reform is needed urgently.
To accomplish such a reform, the national, regional, and municipal governments would need to separate the three primary processes- planning, zoning, and permitting- in land-use, coordinate the planning process between the approximately 6,500 land use authorities in the country, clearly define criteria for construction in the zoning process, and digitize the entire process.
AmCham believes these changes are needed to attract the domestic and foreign investment required to build a higher value-added economy that will raise both national and personal income significantly above the EU average. Our Real Estate Council is ready to work with you to prepare, promote, pass and implement these reforms so that Czechia can take its place among the leading economies of the EU.
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