In March, Prime Minister Andrej Babiš’ government marked its first 100 days in office, confirming an early focus on translating its program into concrete policy actions. A key milestone was the approval of the 2026 Legislative Plan, which sets the near-term regulatory agenda alongside the previously presented long-term Economic Strategy (Country for the Future 2.0) launched on 20thFebruary at the since rebranded Ministry of Industry and Trade.
The Economic Strategy provides an operational roadmap to 2040 aimed at restoring Czech competitiveness by shifting the economy towards higher value-added production, innovation and resilient infrastructure. It responds to recent economic challenges, including weak GDP growth between 2022–2025, high inflation, fiscal deficits and structural constraints in skills, energy costs and investment attractiveness. A central feature of the strategy is its implementation focus: public funding is designed as catalytic capital to mobilize private investment, with clearly assigned responsibilities, KPIs and evaluation mechanisms to track impact and ROI.
The 2026 Legislative Plan translates this direction into concrete regulatory initiatives. Key measures include the introduction of EET 2.0 to strengthen tax compliance, reforms in income tax and VAT, the transposition of EU frameworks such as the Platform Worker Directive and alignment with major EU regulations including the AI Act. The agenda also prioritizes digitalization of public administration, AI integration in government services and reforms in waste, packaging and environmental regulation.
Overall, the policy direction is defined by regulatory modernization and long-term structural transformation. While the strategy opens clear opportunities in innovation, digital infrastructure, energy and public procurement, its success will depend on fiscal capacity, administrative execution and sustained political continuity across electoral cycles.
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