The newly elected chairman of the Prague Chamber of Commerce (HK), an experienced lawyer with a strong background in companies and corporations, is a dedicated advocate for Prague’s Climate Plan until 2030, which was approved this year by the city council. According to Petr Michal, the drafting of the document was a “prudent step,” because banks nowadays reportedly struggle to finance projects that are not typically “green,” and insurance companies are reluctant to insure “dirty” operations, and so on.
“Prague has set a framework from which business can gain an advantage in relation to third parties, typically banks. The city council has helped entrepreneurs here. If they had done nothing, objectively they would be at a disadvantage or even on the defensive in a few years,” said Michal, who also considers the existence of some pedestrian zones in Prague’s city center a good example of the saying: “The road to hell is paved with good intentions.”
From craftsman to lawyer: why you to lead the Prague Chamber of Commerce?
The basic answer is – because I was elected. I have been active in the Prague Chamber of Commerce for ten years now. Recently, I served on the board as vice-chairman. My predecessor Roman Pommer focused long-term and professionally on secondary vocational education, specifically apprentice crafts. His approach experienced a kind of renaissance up to the current relatively strong support from the city hall for fields that we absolutely need to keep alive. One reason for the change in leadership of the Prague Chamber was the need for Roman to fully focus on supporting new legislation at the national level. He is also vice-president of the Czech Chamber of Commerce. My election did not bring any abrupt changes; it is part of a continuous process. Besides continuity, I would also like to “shine a light on topics” that so far have been neglected.
Go ahead.
I would start with what, in my opinion, works very well now. This is the already mentioned apprenticeship education and the support of Prague’s education system as a whole. The Chamber is the city’s main partner in the IKAP project. In the past period, through the Prague Chamber of Commerce, we distributed around a quarter of a billion crowns for the equipment and development of Prague’s secondary schools. Right now, we are signing IKAP II with a similar amount of funds. The Chamber’s administrative and technical activity greatly helps in areas where the city hall itself cannot act as a founder. We ensure that money flows into education.
What would you like to “kick-start” today?
We have a newly staffed and revitalized transport section. Its chairman is the former Minister of Transport Vladimír Kremlík. Since early September, we have already held two round tables in this section. Mainly, this year and next year, we would like to establish a platform or discussion forum where there could be a real, systematic, and continuous dialogue about Prague’s transport, its development, and interconnections. I believe this has not happened until now. Instead, we talk partially about the metro, then about the ring road, then about the need to change parking zones or introduce tolls for cars entering the center. These topics are disconnected from context. I see a possible great contribution of our organization in organizing such a debate. It should not be a one-off event but a functioning series. So that the topic crystallizes not only before us and the participants but also before the wider public.
Who exactly should participate in such a debate?
Certainly, a representative of the investor cannot be missing, which in Prague’s case is mostly the Technical Road Administration. Also, representatives of financing organizations. In Prague, this is most often the city hall, and in many cases, the State Fund for Transport Infrastructure, which can finance not only state but also other constructions. I would also include external financing, whether from banks or EU funds. Designers play an absolutely irreplaceable role.
Why are they so important to you?
Generally, we have a habit of complaining about their work. I often hear questions like why a certain road is so big, poor quality, over-dimensioned, etc. But no one really leads any intensive public debate with designers. That is a pity because they have something to say. Moreover, that is exactly the moment when it is possible to object and “enter” the project. Another essential group of participants I see are the contractors. If we look realistically at who is currently able to build transport constructions in Prague, we are not dealing with an endless number of entities. And in their presence, it is necessary to openly state priorities. Finally, we cannot forget politicians and architects.
Why mention them together?
Deliberately. From my perspective, the role of the Institute of Planning and Development (IPR) is generally very suitable and beneficial for the city. There should be a balanced and clear dialogue between IPR and politicians. It should be IPR that tells politicians what should be done. However, if politicians have the mandate, they should give feedback to IPR. It is also a question whether politicians properly communicate feedback from voters. Do we want more trams in the streets or more parking spaces? IPR has an opinion on this, but what do politicians say? I don’t know personally. I would like to start and lead this discussion. But we also have a whole second “package” of topics that deserve to be “illuminated.” In our organization, this mainly concerns the so-called energy section. We would like to strengthen the role of the document called the Prague Climate Plan much more.
Don’t you consider it unrealistic and ill-thought-out like Prague’s ODS party?
I will try some quick comments. I have no doubt that the Prague Climate Plan was created as a collective work of several expert groups to relieve the political representation from the task it feels from the public – that environmental issues must be addressed. While the opposition strongly criticized the approval of the climate plan by the city council, we as the Chamber of Commerce supported this project with the full weight of our authority. The plan represents a framework or foundation that is broad enough, non-discriminatory, and does not exclude anyone from future discussion or development.
Can you be more specific?
When a company or city needs to borrow money for some investment today, it needs “branding” for that investment. If, as an entrepreneur, I can use branding that corresponds to the principles, concept, and goals of the climate plan as a political declaration, then on today’s banking market, I get a much better position. Both in terms of the chance to obtain a loan and its conditions. At first, it probably wasn’t openly said politically like this, but this is an undeniable effect of the Prague Climate Plan. Therefore, we will certainly participate in the implementation and development of the goals that the plan offers. We could play a role as a moderator between companies, banks, and politicians here.
Who exactly does the Prague Chamber represent? Who are its members?
Basically, all the major players in Prague across sectors. Starting with ČEZ, through the transport company, all the main banks, to the last small business owner with a snack stand in Horní Počernice. Whoever signs up becomes our member. From this follows the need to care evenly about all types of business activities.
In which sectors and locations in Prague do you see the hardest impact of the pandemic?
I do not think at all it was the temporary closure of establishments and the fact that our members lost customers because of that. Now we see that the business environment is changing much faster than politicians can react. Prague has one of the highest rates of pedestrian zones in the world due to its character. Pedestrian zones are a great thing. But everyone knows that where they are, the structure of services, offers, shops changes… First, customers disappear, then gradually employees, residents, and dead zones arise to some extent. As an example, I mention the area around Franz Kafka Square. Today, only restaurants enduring strong pressure, a few small services, and nothing else are left. We believe the tighter connection of the center by the tram network progresses too slowly due to numerous regulations. Recently, we began discussing this topic with the city hall.
What did you recommend to the city representatives?
We suggested whether it is time to reopen “manholes” in specific places and thus send a message to people – come live back in the center. We would like politicians to reflect on the meaningfulness of various transport measures, including pedestrian zones. The city partly turns into a virtual environment because of this. This does not benefit those of our members who have physical establishments. The degree of regulation by local government seems to me more unpleasant after COVID than before. And after the tourist outflow, we face a very difficult task to return life in the center to some natural course. I’m no fundamentalist, but generally, I consider the current level of regulations too high. Prague’s building codes are certainly well-meaning. But prestigious Vinohrady district could not be built today according to them. In a similar spirit, I say: Let’s regulate through traffic in the center only when sufficient alternatives exist. Today, I believe they are not sufficient.
What do you think the mentioned tourist outflow will do to business in Prague in the longer term?
Tourism-related services will definitely have to change, it’s only a question of to what extent. Let’s talk about what incoming tourism (visitor tourism) should look like. How COVID affected the entire segment of business travel and congresses. I don’t have concrete data, but I’m not sure that all global companies will want to stay only on platforms like Teams or Webex. If they want to travel somewhere, then it’s a natural chance and opportunity to make space for them to come to Prague. Another potential lies in transforming so-called beer tourists into tourists with “higher added value.” The debate about a concert hall has been going on for maybe three election cycles. Today, it looks like it could be near the Vltavská metro station. I think it hardly matters where it will be, but the main thing is that it happens. Because this is exactly the type of institution that attracts many cultured visitors. Salzburg, for example, is a small city but lives very significantly through its cultural reputation and production. When something happens there, from the perspective of airport traffic, it is without exaggeration a global city. The third area with great potential, I see in attracting so-called expats.
What attracts them to Prague, and what might discourage them?
Quite a few people who used to live comfortably in Western Europe today tend to exchange their original residence for Prague. In this regard, we should also “step up.” We have a client who considered moving the Central European headquarters from Zurich to Prague. In the end, he did not do it because he couldn’t find enough villa-type houses in Prague for key management. In Prague, there is basically only Hanspaulka, and then nothing. If we slightly relaxed the zoning plan, those people would come and invest and spend here. The city lives on openness, not bans.
According to a recent report, tens of thousands of workers are missing in the IT sector. What does that tell you?
I don’t know the exact numbers. But I think we can almost consider it good news. My impression is that this sector is the fastest growing in the Czech Republic. And I mean globally—we are number one. Everywhere else there is either stagnation or slight growth, but we are clearly on an exponential curve. It is a kind of miracle and remarkable success that started already in the 1980s with our fathers. After all, the history of Avast, which was recently sold for 160 billion CZK, dates back to 1988. Companies like Prusa Research and others draw from some deep groundwork that was created in the early days in Dejvice around the Czech Technical University. If we are champions in something on a global scale, far ahead of Singapore and on the level of Silicon Valley, it is the IT performance realized here. And in the case of the Czech Republic, this means especially Prague.
How to handle this capital?
Realize it and say: Wow, we’re doing well. And get more involved. Right now, I especially mean schools again.
Petr Michal
Born in 1980 in Prague. Graduated from the Faculty of Law at Charles University and also studied law in Berlin. He has been on the board of the Prague Chamber of Commerce since 2012 and has served as vice-chairman. Petr Michal is also a lawyer and partner at the law firm Císař, Češka, Smutný, and acts as an insolvency administrator. He is a member of the board of trustees of the Bohemian Heritage Fund and the YPO organization in Zurich. He is married and has three children.
Author: Jan Prokeš, published in Pražský deník on 27 September 2021
