The bureaucracy index monitors all the duties and requirements of the authorities that a typical smaller Czech company must meet in a year. Bureaucratic activity does not include activities within the index that the company would perform even if it did not have a legal obligation to do so – for example, accounting.
In the Czech Republic, the bureaucracy of a company with an working time of eight hours takes 5.6 working weeks per employee.
“In times of economic growth, we could have waved. But now, in the worse times of the economic downturn and a very uncertain future, when companies have to turn every penny, it would be useful for them not to lose their productive activities for six weeks just because of the state’s vagaries, that it would be best if the government proceeded to “boldly” bureaucratize the economy.
A decrease of three hours this year occurred in the column of changes in legislation. While companies took seven hours last year, this year it was four hours. “There have been no significant changes in the key categories of employee administration and operations,” added Pavel Peterka, an analyst at the Center for Economic and Market Analysis (CETA), who is in charge of the bureaucracy index at the Liberal Institute.
“The public administration reflected in its decisions the negative impact of the pandemic on the livelihoods of entrepreneurs and thus nodded, for example, at the postponement of the third and fourth waves of EET, whose planned introduction in 2020 would certainly mean an increase in bureaucratic burdens for entrepreneurs,” Peterka added.
The situation has not changed in the other areas monitored by the index. The average small company in the Czech Republic still needs 89 hours for official administration related to employees and 118 hours for administration related to operations.
The index was measured in six countries this year. The most bureaucracy burdens Spanish companies, which need 369 hours to fulfill their obligations. It is followed by Italy, where paperwork companies spend 312 hours a year. Worse than the Czechia is Lithuania, where it will take 271 hours for small companies to fulfill official obligations.
On the contrary, Slovakia (217 hours) and Northern Macedonia (153 hours) are better than the Czech Republic.
The Liberal Institute is publishing the results for the Czech Republic for the fourth time this year.