Politics & Economics

Czechia Allocates USD 21 Million to Support Ukraine’s Economy

For the second year in a row, the Czech Republic has allocated more than USD 21 million for humanitarian support, development and economic assistance to Ukraine. “In the first six months of this year, approximately half of this amount has already been spent. Czech firms will supply, for example, water treatment plants and equipment for surgical rooms or rehabilitation centres in the Dnipro region,” the Prime Minister Petr Fiala explained. He informed that last year, the same amount of 500 million CZK was allocated for projects within the framework of humanitarian and economic assistance and for the development of Ukraine. In particular, as part of this program, the Czech Republic contributed to the demining of war-affected agricultural areas in Kharkiv, Kherson and Sumy regions. Czech companies have been supporting Ukraine since the beginning of the full-scale Russian invasion. Already in the first year, they began to establish contacts with new partners and travel to Ukraine on business missions. More and more Czech firms are getting involved in Ukraine’s recovery, thanks in part to government support. “They can impress foreign investors and financial institutions with their quality… When we visit Ukraine today, we see concrete results of their work,” the Prime...

 by Prague Morning Jul 25, 2024

Food Prices in Czechia Fall Most Rapidly in EU

In June, the Czech Republic experienced the largest annual drop in food prices across the European Union, with a notable 4.8% decrease. Hungary, which came in second, recorded a reduction of just over two percent. However, data from the Czech Statistical Office suggests this trend may not last. Future food price reductions will largely depend on harvest outcomes, with the extent of decreases expected to diminish. Dominik Rusinko, an analyst at ČSOB, highlighted that the Czech Republic continues to lead in food price reductions, contributing to an unexpected decline in overall inflation. “Food prices only decreased in five EU countries, with an average increase of 1.3% year-over-year across the EU,” Rusinko explained. This sharp decrease in food prices has played a significant role in reducing the nation’s overall inflation rate. Despite agricultural producer prices being down 7.5% year-over-year in June, there was a 1.9% month-over-month increase. For example, fresh vegetable prices rose by 13.3% compared to May, poultry by 3.5%, and pork by 0.3%. Egg prices fell by 4.5%. These mixed signals suggest that the positive trend in food prices may not persist. “In the second half of the year, the deflationary impact of food prices on overall consumer inflation...

 by Prague Morning Jul 21, 2024

Flights to Korea to Increase in Light of Nuclear Plant Project

Korea and the Czech Republic agreed to expand bilateral traffic rights for flights from four to seven weekly, the Korean Transport Ministry said Friday, as part of a broader effort to support the two countries’ $17 billion nuclear reactor project in the European nation. The decision was reached during a Korea-Czech aviation meeting held in Prague from Wednesday to Thursday, the Ministry of Land, Infrastructure and Transport said. Traffic rights, determined through intergovernmental negotiations, are allocated by each country’s government to their respective airlines. The expansion agreement marks the first increase in traffic rights between Korea and the Czech Republic in 26 years, as they had been fixed at four weekly flights since 1998. The Czech Republic is currently connected to Korea by a single direct route — Korean Air’s Incheon-Prague service, which was launched in May 2004 and has carried 1.5 million people. Czech Airlines operated flights from June 2013 for about seven years, but the service was suspended due to the Covid-19 pandemic. However, a codeshare agreement with Korean Air remains in place, which allows travelers to book flights and accumulate mileage through Korean Air when traveling to a third European country via Prague on Czech Airlines. Over...

 by Prague Morning Jul 19, 2024

Czechia, Ukraine Sign Cooperation Deal on Energy, Trade, Healthcare

Ukraine and the Czech Republic have signed a number of documents following joint government consultations, including intentions to cooperate in the energy sector and the fight against crime. The five Memorandum covers a wide range of cooperation areas, including energy security, renewable energy and hydrogen development, electricity infrastructure modernization, nuclear energy cooperation, e-mobility infrastructure expansion, and support for gas storage and production in Ukraine. More specifically: Agreement between Ukraine and the Czech Republic on cooperation in the fight against crime and ensuring public order and security.   Memorandum of Intent on cooperation in the energy sector. In particular, on the implementation of a project to transport various types of oil through the South Druzhba pipeline. Ukraine also encourages Czech companies to store gas in Ukrainian underground storage facilities and invest in gas production in Ukraine, and invites Czech companies to join projects to build new highly maneuverable gas generation, biofuel plants, and battery storage systems. The Czech Republic will promote the development of decentralized energy in Ukraine.   Memorandum between the State Space Agency of Ukraine and the Ministry of Transport of the Czech Republic, which provides for a new level of cooperation in the development of the space industry....

 by Prague Morning Jul 17, 2024

Czech and Ukrainian Governments to Have Joint Meeting in Prague

The Czech and Ukrainian governments will hold a joint meeting in Prague on Tuesday, focusing on cooperation in defense, energy, and migration. The Government Office announced this on Monday. Discussions will also cover the potential involvement of Czech companies in the reconstruction of war-torn Ukraine. The two cabinets last met in Kyiv in October 2022, with Ukrainian President Volodymyr Zelensky in attendance. The topics of that meeting were similar, emphasizing Ukraine’s ambitions to join the European Union. The upcoming consultations will be led by Czech Prime Minister Petr Fiala and Ukrainian Prime Minister Denys Shmyhal. Key Czech officials attending the meeting include Interior Minister Vít Rakušan, Regional Development Minister Ivan Bartoš, Health Minister Vlastimil Válek, Defense Minister Jana Černochová, Foreign Minister Jan Lipavský, Industry and Trade Minister Jozef Síkela, Transport Minister Martin Kupka, Education Minister Mikuláš Bek, Agriculture Minister Marek Výborný, and Science, Research and Innovation Minister Marek Ženíšek. On Wednesday, the Czech cabinet will hold its regular meeting. The Czech government also holds joint meetings with the Polish cabinet. However, the traditional meeting with the Slovak government has been temporarily suspended due to differing views on foreign policy issues, including their stance on aid to Ukraine. Would you like...

 by Prague Morning Jul 15, 2024

Czech Politicians Condemn Trump Assassination Attempt

Czech politicians have strongly condemned the assassination attempt on US presidential candidate Donald Trump. Andrej Babiš, the former Czech presidential candidate and head of the ANO movement, called the act “crazy” on the social network X on Sunday. Trump was shot in the upper part of his right ear by a 20-year-old during a rally at an amusement park in Butler, Pennsylvania. One spectator was killed and two critically injured in the shooting. “Crazy, every normal person has to condemn this,” former Prime Minister Babiš commented on X. Pokus o atentát na @realDonaldTrump. Šílené, každý normální člověk to musí odsoudit. Přeju mu rychlé uzdravení. — Andrej Babiš (@AndrejBabis) July 14, 2024 Current Prime Minister Petr Fiala (ODS) also condemned the attack and wished Trump a speedy recovery. “Politics should be a battle of opinions, violence must have no place in it. I strongly condemn the attack on Donald Trump and wish him a speedy recovery,” Fiala said on X. Politika má být soubojem názorů, násilí v ní nesmí mít místo. Důrazně odsuzuji útok na Donalda Trumpa a přeji mu brzké uzdravení. — Petr Fiala (@P_Fiala) July 14, 2024 Czech Deputy Prime Minister and Interior Minister Vít Rakušan (STAN) echoed these...

 by Prague Morning Jul 14, 2024

Biden Preferred by Czechs More Than Trump at End of His Presidency

People in the Czech Republic prefer US President Joe Biden more than they did Donald Trump when the former Republican president’s term was coming to an end in 2020, a poll showed. With just months before the November US election, 41% of people in Czechia had a positive view of Biden, according to the STEM/MARK opinion survey published on Tuesday. That compared to 26% of Czechs who saw Trump in a favorable light just over four years ago, the poll showed. Controversy in the campaign battle between Biden, 81, and Trump, 78, has intensified following the June 27 US presidential debate in Atlanta, where Trump made dozens of false statements and Biden sometimes struggled to articulate his thoughts. For Czechs, who are staunch allies of their fellow NATO member the US, the performance of both candidates was alarming. “Trump is crazy, but Biden is too old to even form a sentence,” said Jan Oliverius, 36, in downtown Prague. While Biden’s end-term popularity is higher than Trump’s for Czechs, his appeal has dropped since he took power in 2021, when 55% of Czechs approved of his victory, the poll showed. US opinion surveys show Trump is leading Biden ahead of the...

 by Anna Woods Jul 11, 2024

Czech Unemployment Stays at 3.6% in June

The Czech unemployment level was 3.6% in June, which was the same level as in May. There were 272,684 persons registered with the country’s Labour Office, which was 1,638 less than in May. In year-on-year terms, the unemployment level was up by 0.2 percentage points, or by 22,892 job applicants. Head of the Labour Office Daniel Kristof commented on the developments in the first half of 2024. He highlighted “three clear super-trends” which are the dropping interest in “low qualified work” and “growth of interest in requalification”. “The third significant trend is the growing number of people which the Labour Office returns to the labour market,” Kristof commented. The unemployment level has dropped month-on-month in 12 of the 14 regions in the country and in 52 of the 77 districts. The district of Most in the north of the country along the German border has the highest unemployment rate in the country at 8.4%, replacing the district Karvina in the northeast after the large coal mine CSA shut down and laid off a large part of the staff. At the end of June 123,813 Ukrainians sheltered in Czechia under the temporary protection scheme, introduced following the February 2022 Russian invasion...

 by Prague Morning Jul 11, 2024

Czech Minister Calls Attackers of Kyiv Hospital ‘Dregs of Humanity’

Czech Foreign Minister Jan Lipavsky said on Tuesday he had summoned Russia’s ambassador in Prague following an attack on a children’s hospital in Ukraine’s capital, saying those who carried out the strike were the “dregs of humanity”. Ukrainian authorities say Russia struck the main children’s hospital in Kyiv with a cruise missile and fired missiles at other cities on Monday, killing at least 41 civilians across the country. Russia denied it had attacked a Kyiv children’s hospital and said, without providing evidence, that Ukrainian anti-missile fire was to blame for Monday’s strike. “I have decided to summon the Russian ambassador,” Lipavsky said on social media platform X. “Murderers who attack children in hospitals are the dregs of humanity. He has been instructed to deliver the message in Moscow.” The Russian ambassador met a Czech deputy minister while Lipavsky was on a trip to Washington for a NATO summit. Writing on the Telegram messaging app, Zelenskiy said more than 100 buildings had been damaged, including the children’s hospital and a maternity centre in Kyiv, children’s nurseries and a business centre and homes. “The Russian terrorists must answer for this,” he wrote. “Being concerned does not stop terror. Condolences are not a...

 by Prague Morning Jul 09, 2024

Czech Consumers Pessimistic, Despite Improvements In Personal Finances

More than half (53%) of Czech consumers are pessimistic about the country’s socio-economic future. However, more than two-thirds (68%) believe that their household’s financial situation will improve (or remain unchanged) in the coming year, a new study has found. The study, undertaken by STEM alongside KPMG, found that the percentage of Czech consumers that are looking ahead to the next year with ‘concern’ or ‘uncertainty’ has also increased, albeit slightly. Bad Mood ‘Persists’ “The bad mood still persists. Specifically, 53% of people think that the overall situation in the Czech Republic is not developing well,” commented STEM director Martin Buchtík. “However, the data on the financial situation of households indicate that we are out of the worst.” The survey showed improvement in the ability of households to develop savings in almost all demographics, except among those whose highest education level is primary school. In addition, banks continue to enjoy high public trust in the country, a level of trust that remains stable despite external shocks. Economic Growth “We expect economic growth to resume this year and in the coming years, but we will probably return to the 2019 economic level only this year,” added KPMG economist Adam Páleníček. “So, we...

 by Prague Morning Jul 07, 2024

Hungary’s Orbán Announces New ‘Patriots for Europe’ Alliance with Austrian and Czech Nationalists

Austria’s Freedom Party (FPÖ), Czechia’s ANO, and Hungary’s Fidesz have formed a new right-wing coalition, the parties’ respective leaders announced at a joint press conference in Vienna on Sunday. Hungarian Prime Minister Viktor Orbán, former Czech Prime Minister Andrej Babiš, and Austrian opposition leader Herbert Kickl said the new alliance would hopefully entice others to join and become the largest nationalist political group in the European Parliament. “Today we are creating a political formation that will ‘forge ahead’ and very quickly become the strongest grouping and largest faction of the European right,” Orbán said. The Hungarian prime minister expects this to happen within days, and then the “sky will be the limit.” Orbán pointed out that the situation in Europe is clear, that European politics must change and change is needed in Europe. He underlined that in 20 of the 27 EU member states, parties that promised change to the citizens won the European Parliament elections. The Hungarian leader revealed the parties had adopted the Patriots’ manifesto, which summarizes the ideals and goals around which they are organizing their work. According to Orbán, the European economy is in crisis, its weight is diminishing and the threat of terrorism and migration...

 by Prague Morning Jul 02, 2024

Czechia Meets Only One Criterion for Euro Adoption, Says European Commission

The Czech Republic meets only one of the four criteria required to join the eurozone and adopt the euro, according to the European Commission’s (EC) Convergence Report 2024. The report, released on Wednesday, highlights that the Czech Republic fulfills the criterion for long-term interest rate convergence but fails to meet the standards for price stability, healthy public finances, and exchange rate stability. The Commission expects progress on the criterion of healthy public finances. The EC assessed six European Union (EU) member states that have not yet adopted the euro but have pledged to do so eventually. These countries include Bulgaria, Hungary, Poland, Romania, and Sweden, along with the Czech Republic. None of these nations currently meet all the criteria, including Poland and Hungary. Before joining the eurozone, candidate countries must participate in the ERM-2 exchange rate mechanism. Among the six evaluated nations, only Bulgaria is currently a member of ERM-2. Denmark, another EU member that does not use the euro, was not assessed by the Commission. Denmark has a permanent exemption from the Maastricht criteria and is not obliged to adopt the euro. When the Czech Republic joined the EU in 2004, it committed to adopting the euro. However, the...

 by Prague Morning Jun 26, 2024

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