THE CZECH Republic is offering a plane ticket home and €500 to foreign workers who lose their jobs during the economic downturn.
The government in Prague insists the scheme will save the state money in the medium-term and prevent newly unemployed foreigners claiming benefits, taking unregistered, untaxed work in the black economy or making cash from crime.
Unemployment has jumped to 6.8 per cent – its highest level for almost two years in the Czech Republic – where 12,000 of 290,000 registered foreign workers are expected to lose their jobs in the coming months.
The work permits of a further 68,000 foreigners are due to expire during the first half of this year.
“Many of these people could unfortunately end up with a difficult financial problem and struggle for a living. Then there is a threat that they will end up in a grey zone and become a part of criminal networks,” said interior minister Ivan Langer.
Officials said the scheme would initially repatriate 2,000 foreigners at a cost of about €2.1 million, compared to a predicted cost to the state budget of some €2.8 million if it were not implemented.
Mr Langer said the government would also seek to increase companies’ responsibility for their foreign employees and implement more stringent checks on people arriving in the country to work.
He also proposed tougher oversight of firms that arrange visas and find employment for workers from abroad, many of which are accused of charging crippling fees to poorly-paid foreign clients.
The Czech Republic – which holds the rotating presidency of the European Union – has so far fared better during the economic crisis than other eastern members like Hungary and the Baltic states, which have far bigger budget deficits and higher levels of debt.
