Politics & Economics

Billions from Brussels: How EU Money is Powering Czechia’s Growth

Czechia has successfully launched the 2021-2027 European funding period, with 13% of the available funds already reimbursed—far exceeding the European average of 7.5%. By the end of 2024, more than half of the allocated funds had already been contractually secured. This means that beneficiaries—businesses, municipalities, and institutions—have committed to using these resources for specific projects aimed at economic growth, sustainability, and innovation. Environmental Protection EU funds have played a crucial role in reducing air pollution, improving water purification, and promoting energy efficiency, leading to a better quality of life for residents. Key achievements (2014–2020): The percentage of people living in areas with high air pollution dropped from 26.5% to just 1.4%. Annual energy consumption fell by 3.2 million GJ, equivalent to 3.5% of Czechia’s total heat consumption. Composting increased by 70%, preventing over 305,000 tons of waste from ending up in landfills. More than 88,800 households replaced solid fuel boilers with environmentally friendly alternatives. Modernizing Transport Infrastructure EU funds have helped expand and modernize roads, highways, and railways, making travel faster and safer across the country. Key achievements (2014–2020): 357 km of new roads and highways were constructed, while 1,500 km were reconstructed. One in four municipalities improved connections to...

 by Prague Morning Mar 15, 2025

Ukraine Thanks Czech Volunteers for Funding Black Hawk Helicopter

The initiative, called “A Gift for Putin,” began crowdfunding for the Black Hawk helicopter in November 2023, with more than 20,642 donors contributing to the cause. According to the initiative’s website, Ukraine’s military intelligence (HUR) will use the helicopter for evacuating soldiers and conducting special operations. Kyrylo Budanov, head the military intelligence service of the Ukrainian government, expressed gratitude for Czech support throughout the war with Russia, calling the fundraiser “an unprecedented event.” The organizers wrote: “We did it! Czechs are sending a Black Hawk helicopter to Ukraine. We managed to get a cheaper and newer machine that Ukraine needs.” “Let’s finish what we started together and send Čestmír to fight against the dark Empire,” they added, referring to the helicopter’s symbolic name ‘Čestmír,’ which means ‘one who values honor’ in Czech, while likening Vladimir Putin’s regime to a ‘dark empire.’ The statement continued: “Ukraine cannot win the war with drones or ammunition alone. It also needs tanks, aircraft, howitzers—and helicopters for special operations.” Czechs have now become the first nation to purchase a military helicopter for Ukraine. Would you like us to write about your business? Find out more

 by Prague Morning Mar 07, 2025

The Birth of Tomáš Garrique Masaryk, 175 Years Ago

Father of Czechoslovakia, the very first Czechoslovak president, philosopher and sociologist, humanist and democrat, the 2nd Greatest Czech according to the national vote in 2005. We can mention these things and much more while remembering the legendary professor Tomáš Garrique Masaryk. President Petr Pavel and Senate Speaker Miloš Vystrčil will attend a commemorative event in Lány, where they will lay wreaths at Masaryk’s tomb. Vystrčil, along with other senators, will also participate in a ceremony at Masaryk’s statue on Prague’s Hradčany Square. Commemorative events are also planned in Plzeň, Olomouc, Vsetín, and Hradec Králové. The museum in Masaryk’s hometown of Hodonín in Moravia will put his original writing set on display. About Tomáš Garrique Masaryk TGM was born on March 7th, 1850 in Hodonín, South Moravia, close to the Slovak border as Tomáš Masárik. He was the oldest of three sons born to a Slovak father and a Czech mother with roots in Germany. Educated in Vienna and Leipzig, Masaryk spent decades advocating Czech statehood. Masaryk’s literary activities were extensive, including being the editor-in-chief for various magazines, an editor for a new Czech encyclopaedia, and translating literary works by such greats as Dostojevsky into Czech. Masaryk’s priority was obtaining independence before...

 by Prague Morning Mar 07, 2025

Czech Republic to Lift Defence Spending to 3% of GDP by 2030, PM Says

The Czech government has decided to gradually raise its defence spending to 3% of gross domestic product by 2030, from around 2% now, Prime Minister Petr Fiala said on Wednesday. Defence expenditure should rise by 0.2% of GDP each year starting in 2026, when it should reach 2.2%, he said. Fiala has said defence spending must grow to meet new geopolitical realities. “Increasing defence spending is important for security, it is necessary and essential,” Fiala said, adding it was also an opportunity for the economy. European leaders have been moving quickly to plan higher defence spending after the return of Donald Trump as U.S. president raised fears in Europe that it can no longer be sure of U.S. protection. Czech defence spending reached 2% of GDP in 2024, in line with its commitments as a NATO member. The government faces a general election in the autumn, and the main ruling parties are trailing in polls to the party of former prime minister Andrej Babis, who has said spending at current targets already means more money going to defence due to rising GDP.

 by Prague Morning Mar 06, 2025

US Tariffs to Hit Czechia and Slovakia Hard – S&P Global Warns

Czechia, Slovakia, and other Central European countries could face serious economic setbacks as the United States plans to impose 25% tariffs on imports from the European Union, according to a report from S&P Global. The German auto sector, a key driver of Central Europe’s economy, is expected to be particularly affected. Although the Trump administration has yet to confirm the start date for these tariffs, their implementation could hamper economic growth across the region and exacerbate existing budgetary issues, S&P Global warned on Monday. Czech and Slovak Economies at Risk Despite limited direct trade exposure to the U.S., the economies of Czechia, Slovakia, Hungary, Slovenia, and Romania are heavily tied to the German auto industry, which would suffer from reduced American demand, S&P Global said. Machinery and transport equipment exports to Germany account for over 10% of total exports in these countries, making them vulnerable to any downturn in the sector. Central European economies are among the most export-dependent in the EU. According to Eurostat’s 2023 data, exports make up 92% of Slovakia’s GDP and 69% of Czechia’s GDP—both well above the EU average. Romania is the only exception, with 39%. Growth Slowdown Expected According to Nicholas Farr, an analyst...

 by Prague Morning Mar 05, 2025

Czech Foreign Minister Responds to U.S. Suspension of Military Aid to Ukraine

Czech Foreign Minister Jan Lipavský has addressed reports from several reputable American media outlets indicating that U.S. President Donald Trump has ordered a suspension of all military supplies to Ukraine. While the White House has neither confirmed nor denied this information, the decision reportedly affects artillery shells, missiles, vehicles, and other equipment, including supplies agreed upon during former President Joe Biden’s tenure. In response, Minister Lipavský emphasized Europe’s responsibility in safeguarding its own security. He noted that President Trump’s commitment to ending foreign conflicts aligns with his campaign promises, suggesting that Europe’s defense against Russian imperialism now rests primarily on its own shoulders. “Our government has increased defense spending and will continue to do so to ensure the security of the Czech Republic,” Lipavský stated. “We will also persist in negotiations with our partners, including Ukraine, to achieve lasting peace in Europe.” This development has raised concerns among European leaders about the potential impact on Ukraine’s defense capabilities and the broader security landscape in Europe. The suspension of U.S. military aid underscores the necessity for European nations to bolster their defense strategies and collaborate more closely to maintain regional stability. Would you like us to write about your business? Find out...

 by Prague Morning Mar 04, 2025

Another Wave of Food Price Hikes in Czechia: What’s Behind It?

The Czech Republic has barely had time to recover from recent food price hikes, and another surge is already underway. This wave is marked by the most significant increase in agricultural producer prices in nearly two years. In January, the price of agricultural production rose by 9.1 percent year-on-year, the largest increase since March 2023. Potatoes, in particular, saw a significant rise of 6.2 percent month-on-month. While last year’s harvest was relatively strong, the price surge is largely due to the expansion of growers’ production areas. This trend was similarly observed in major producer countries like France and Germany, which have a direct impact on potato prices in the Czech Republic. But it’s not just supply issues driving the price increase – demand is also on the rise. This is partly due to the fading effects of recent years’ inflationary waves. Additionally, the cost of storing potatoes during the winter has risen due to higher energy costs, further contributing to the price increase. Rising Fruit Prices Fruit prices are climbing sharply as well, with a 29.8 percent year-on-year increase. Stocks from the previous season are running low, and their depletion is accelerating due to rising demand. Much like potatoes, fruit...

 by Prague Morning Feb 26, 2025

Putin Fears Zelensky’s Legitimacy, Czech Foreign Ministry says

Vladimir Putin fears Ukrainian President Volodymyr Zelensky because he was freely elected, unlike Putin himself, the Czech Foreign Ministry Jan Lipavský said in a statement released on February 24. “Exactly three years ago, tens of thousands of Russian troops invaded Ukraine with the aim of killing a president elected in free elections, overthrowing a democratically elected government, murdering as many Ukrainians as possible, subverting the entire country and using it as a tool of attack against other states,” the statement reads. It also emphasizes that the Czech Republic supports the territorial integrity and sovereignty of Ukraine. “We will continue to consider Crimea and parts of the Donetsk, Luhansk, Kherson and [Zaporizhzhya oblasts], which are currently illegally occupied by the Russian army, as indivisible parts of Ukraine. Any future agreements must reflect this indisputable fact,” the Czech Foreign Ministry added. A just and lasting peace based on the principles of the UN Charter must be achieved for Ukraine. “Peace cannot be achieved by yielding to the aggressor,” Czech diplomats stated. “Through its aggression, Russia not only seeks to destroy Ukraine but also to weaken our freedom, prosperity, and the security architecture in Europe, thereby attempting to undermine NATO and the EU.”...

 by Prague Morning Feb 25, 2025

Czech President Pavel Reaffirms Support for Ukraine Amid Trump’s Remarks

Czech President Petr Pavel spoke with Ukrainian President Volodymyr Zelensky on Friday, assuring him of continued Czech support as Ukraine marks three years of resistance against Russian aggression. “We know very well and will not forget who is the victim and who is the aggressor in this war. Together with other European countries, we intend to intensify our assistance to Ukraine in its brave and just struggle,” Pavel said. His statement was seen as a response to former U.S. President Donald Trump, who recently cast doubt on Russia’s role as the aggressor. Pavel emphasized that Ukraine is not only fighting for its own survival but also for Europe’s security and freedom. The Czech president shared details of his conversation with Zelensky on X. The two leaders have met multiple times in the past, with Zelensky previously welcomed at Prague Castle. Trump has intensified his verbal attacks on Ukraine and Zelensky in recent days, calling the Ukrainian president a dictator and a mediocre comedian. He also claimed that Ukraine could have ended the war much earlier and should not have engaged in the conflict with Russia. Pavel, who has previously called Trump a “repulsive being”, firmly rejected Trump’s remarks about Zelensky....

 by Prague Morning Feb 22, 2025

Taiwanese Citizens Can Now Work in Czechia Without a Permit

The Czech government has expanded the list of non-EU countries whose citizens can work in the country without a permit. Starting in March, people from Taiwan will no longer need a work permit or employment card to be legally employed. The cabinet approved the change on Wednesday as part of an effort to attract more skilled foreign workers. The measure aims to ease hiring for Czech businesses while making it simpler for professionals and managers from Taiwan to relocate. According to the Ministry of Labor and Social Affairs, as of last June, 185 Taiwanese nationals—80 men and 105 women—were employed in Czechia. The decision comes after an amendment to the Employment Act, which allows the government to designate certain non-EU countries as eligible for work without additional permits. Since July 2023, this list has included Australia, Japan, Canada, South Korea, New Zealand, the United Kingdom, the United States, Israel, and Singapore. Taiwan was originally part of the proposal but was later removed because Czechia does not officially recognize it as an independent state. However, a separate legislative change now allows Taiwan to be treated as an independent jurisdiction, clearing the way for its inclusion. Security concerns were also considered before...

 by Prague Morning Feb 19, 2025

“Russia Will Not Become Friendlier After Ukraine War Ends,” Warns Czech Military Chief

Chief of General Staff expresses need to boost numbers in the Czech military, despite demographic trends. Russia should not be expected to become “friendlier” after the Ukraine war comes to an end, according to the Czech Republic military chief. “Russia will stay here. Russia will not be safer towards us, it will not be friendlier and it will not be more predictable,” Chief of General Staff Karel Rehka said in weekend remarks to Czech television. His remarks came days before the war reached its third anniversary and with talk of possible negotiations and peace proposals making headlines. Rehka also pointed to the difficulty of achieving a resolution to the war in a way that prevents it from resurfacing in the future. He added that his country’s military hopes to boost its active and reserve members to 37,500 but admitted that this is “unrealistic” given demographic trends and past recruitment efforts. Under current plans, the Czech army is set to have 30,000 professional soldiers and 10,000 active reserve members by 2030. Currently, the army has some 23,600 soldiers, with around 1,000 added over the past five years. Would you like us to write about your business? Find out more

 by Prague Morning Feb 18, 2025

European Union Plans Donald Trump-Style Import Ban on Food

The European Union is preparing to restrict certain food imports from the United States to bolster domestic agriculture. This move comes as a direct countermeasure to US President Donald Trump’s trade policies, according to the Financial Times. The European Commission is expected to approve a review of current import limits next week. Early indications suggest that the new restrictions may focus on products like soybeans produced using pesticides that EU farmers cannot legally apply. By enforcing these standards, the EU aims to protect its agricultural sector and ensure fair competition in the marketplace. Officials have emphasized that these measures are designed to shield local producers from products manufactured under different environmental and safety regulations. In doing so, the bloc seeks to create a level playing field and maintain the integrity of its domestic market. “We have very clear signals from the parliament, very clear signals also from the member states and from our farmers: whatever is banned in the EU, it should be banned in the EU, even if it is an imported product,” European Commission’s health commissioner Olivér Várhelyi said in an interview in January. Trump on Thursday attacked countries that blocked US products, including the EU, which he...

 by Prague Morning Feb 17, 2025

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