Inspection, as the authoritative supervision of private liable persons to comply their activities with sector-specific laws, should ensure the full implementation of public policies. Slovenia adopted the Inspection Act (IA) in 2002, in order to conduct efficient inspection, and simultaneously guarantee the defence rights of the supervised parties pursuant to the fundamental principles of the EU, the national Constitution, and general Administrative Procedure Act. This article addresses the search for a balance between general codification and sector-related specifics as stipulated by the IA, applying normative, constitutional case law and comparative methods. Special attention is dedicated to the IA rules regarding participants, their legal protection and stages of respective proceedings. It has been concluded that the most of the IA specifics are justified in order to efficiently serve the public interest. This study reveals that the Slovene IA can represent a role model for efficient yet democratic supervision in other MS as well.
Luděk Kouba, Michal Mádr, Danuše Nerudová and Petr Rozmahel
Within the context of the continuing integration process in Europe, this paper addresses the question of whether policies in the EU should head towards autonomy, coordination or harmonization. Taking the path dependence effect into account, it is the authors’ opinion that Europe has gone too far in its integration process to be able to continue with policies being fully under the competences of individual member countries. However, the habitual question still arises: does fiscal policy need to be harmonized to a level comparable to monetary policy as these two policies, necessarily, complement each other? This paper argues that it does not. There are three main arguments discussed. Firstly, the authors build on the theory of fiscal federalism. Secondly, there are significantly different regimes of welfare states and extents of social policies among European countries, which strongly determine the character of public finance. And thirdly, the tax systems across Europe are also highly divergent, with many features of continuing tax competition.
Martin Vyklický, Petr Man, Rudolf Franz Heidu and Radek Jurčík
Qualification requirements for foreign suppliers in Public Procurement (PP) are quite different in each European Union (EU) member state. The most complex requirements for foreign suppliers in the context of public purchases are included in the Czech PP law. The aim of this paper is to make an overview of the problem of qualification requirements for foreign suppliers in the PP law of the CR. Its sub-objectives are the identification and explanation of solutions to the problem in the PP legislation of neighboring countries of the CR that are also members of the EU. The methodological part of the contribution is based mainly on the analysis and critical evaluation of the current state of legal issues relating to the proof of qualification of foreign suppliers in PP orders of the CR; with examples of fairly extensive decision-making practices of the Office for the Protection of Competition and law courts, including the jurisprudence of the European Court of Justice. The paper highlights the unnecessary complexity of qualification requirements that, on purely formal grounds, inhibits submissions of tenders from potential foreign suppliers that would otherwise be able to submit a bid for a public contract without any problems whatsoever. The authors are using and applying a comparative-legal method in the context of the comparison of the PP legislation of neighboring countries of the CR that are also members of the EU. The case study of foreign suppliers bidding for above-threshold public tenders in the CR at the minimum legal requirements of the contracting authority (CA) for proof of qualification, the comparation study with selected EU countries or analysis of the development of the proportion of public contracts awarded to foreign suppliers in 2010–2014 shows that there is legislation uncertainty in EU PP law that should be reduced and simplified on an EC basis.
In the context of the conclusion of contracts between entrepreneurs under the Czech Civil Code, it is a relatively common arrangement that the parties disclaim any and all liability for damage arising from non-compliance with contractual obligations, if they can prove that this failure was due to an obstacle independent of their will. This circumstance excluding liability for the damage is called force majeure by the theory. In many countries this circumstance is ruled upon directly by the legislation (höhere Gewalt, vis major). The Czech regulations represented by the new Civil Code of 2012 (CivC), however, contains only a framework provision that mentions discharging reasons. The paper deals with the – rather disputable – issue that the force majeure does not affect the obligation to pay a contractual penalty under the new rules of the CivC. It should be therefore reflected in the arrangements for contractual penalties inter partes. To this effect the paper analyses the concepts of contractual penalties and force majeure in civil law legislation. Afterwards it compares their mutual relationship and impact on the obligations of the Contracting Parties. Finally, it draws recommendations for practice from the perspective of the contracting process.
Michal Kvasnička, Rostislav Staněk and Ondřej Krčál
This paper explores the effect of various contract-awarding procedures in public procurement on the price of the contract. We provide a theoretical model that compares prices in different procedures and tests whether there is a significant price difference between the procedures using data from Czech public procurement. The model predicts that auctions are more efficient than negotiations given the same number of suppliers, and open procedures are more efficient than closed procedures if high-cost firms are selected for the closed procedure. In accordance with the first prediction, we find that open auctions are more efficient than open negotiations. Concerning the second prediction, we find that closed procedures are less efficient than open procedures, which suggests that procurers tend to select relatively more costly firms to participate in closed procedures. Comparing all four awarding procedures, we find that open auctions are the most efficient procedure used in the Czech Republic. We estimate that the inefficiencies due to the use of other contract-awarding procedures are substantial.
In recent years, institutions and institutional structure have become some of the most popular concepts analyzed by economics theory. New growth theories have especially focused on the effects of institutions and institutional structure on a macro level. Property rights are one of the most important elements of this institutional structure. The relationship between property rights and economic growth have drawn the attention of many researchers and policymakers in recent years. The aim of this study, covering the period 2007–2014, is to examine the relationship between property rights and economic growth with the help of PARDL in OECD and EU countries. According to the result of a bounds test, there is cointegration between the variables. The long- and short-term relationships between series were determined and the results taken from the analysis show that there is a positive effect on economic growth in those countries.
Complementary health insurance is divided between the internal market (market principles) and social dimension, wherein the state has an extremely difficult task, as it must create the conditions necessary for the fair and efficient functioning of the health care financing system. Slovenia has failed to successfully accomplish this task, which consists of both ensuring the social dimension and also facilitating the operation of market principles. The aim of this article is not on the functioning of market principles, which are covered by the field of economics, but is instead on analyzing the dichotomy between the internal market (the rules that govern the functioning of the internal market) and the social dimension (the rules that enable the exercise of the social function), and, in this light, analyzes the legal regulation of the Slovenian complementary health insurance. Analysis of the legal regulation highlights the shortcomings in ensuring the social dimension, shortcomings which are, with the help of the measures proposed in the concluding section of the article, remedied by the author.
The Czech Republic is a typical representative EU Member State which has several times changed VAT rates during the analyzed period 2007–2014 in an effort to consolidate the public budget. These changes are reflected in household spending, which were analyzed by means of the consumer basket, the composition of which is also undergoing changes. Another factor that has an impact on household expenditures is the transfer of commodities between the reduced and standard rate of VAT. The final factor used is the differentiation of households according to their income levels. The aim of this paper is to determine how these changes took effect in the Czech Republic in the share of consumption of commodities included in the standard and reduced VAT rates and in exempt transactions according to household income groups in the analyzed period 2007–2014 and to determine the impact of these changes on the tax burden on selected households by value added tax and confirmation of the assumption of VAT regressivity.
Naďa Birčiaková, Jana Stávková and Veronika Antošová
This paper deals with the evaluation of selected available indicators of living standards, divided into three groups, namely economic, environmental, and social. We have selected six countries of the European Union for analysis: Bulgaria, the Czech Republic, Hungary, Luxembourg, France, and Great Britain. The aim of this paper is to evaluate indicators measuring living standards and suggest the most important factors which should be included in the final measurement. We have tried to determine what factors influence each indicator and what factors affect living standards. We have chosen regression analysis as our main method. From the study of factors, we can deduce their impact on living standards, and thus the value of indicators of living standards. Indicators with a high degree of reliability include the following factors: size and density of population, health care and spending on education. Emissions of carbon dioxide in the atmosphere also have a certain lower degree of reliability.
This paper analyses the extent and impact of structural changes on aggregate economic growth that occurred in European economies during the past two decades, focusing on the new EU Member States of Central and Eastern Europe. After presenting some stylised facts related to employment and output restructuring, we use a conventional shift and share analysis in order to evaluate the impact of broader sectoral shifts on GDP growth, focusing on the period 1995–2011. A decomposition of aggregate GDP/GVA growth using the shift and share analysis shows a distinct North-South pattern of growth and restructuring while the previous NMS-OMS divisions are becoming less relevant. In the North, manufacturing and trade have fuelled growth whereas in the South there has been much less structural change. Apart from these differences, our results partly differ from earlier findings of similar analyses for the NMS. Finally, we analyse differentiated impacts of the recent (2008–2011) crisis on structural changes in Europe and find interesting similarities between (groups of) NMS and OMS in terms of both growth patterns and responses to the crisis.