Review of Sectoral Reforms in the Czech Republic

Abstract

Since its creation in 1993, the Czech Republic has experienced a period of broad and deep changes to the legal structure and institutional frameworks that were necessary to ensure transition to a market economy. This chapter focuses on energy (gas and electricity) and transportation (road and rail freight) sectors, which are important in final consumption expenditure, and as inputs to other sectors, impact on overall economic competitiveness. Substantial progresses have been made over the past decade, the regulatory environment has been liberalised and some competition emerged. Reform, however, remains incomplete with the state still significantly involved in these sectors. Also, improvements are needed in the regulatory framework to build market confidence by improving clarity and transparency in the regulatory process. It is expected that prospects for Czech accession to the EU will encourage the authorities to establish such a framework in accordance with the relevant EU directives.