Politics & Economics

Babiš Proposes 100% Tax on Real Estate Bought by Non-EU Foreigners

Andrej Babiš, leader of the ANO movement, told Echo24 that if he is elected to government, he intends to implement a 100% tax on real estate purchases by foreigners from non-EU countries who do not actively occupy the properties. He cited Spain as a model for this policy. Babiš argued that the tax should apply not only to houses and apartments but also to land, as foreigners often buy property and land using dubious funds. According to him, this move would ensure that non-EU buyers are discouraged from using Czech property as an investment tool without contributing to the local community. The tax would affect nationals from countries such as the UK, Ukraine, Belarus, and Russia. Babiš emphasized that the goal of his proposed tax policy would be to collect taxes effectively and reduce them where possible. He criticized the current Czech government, led by Prime Minister Petr Fiala (ODS), for what he described as ineffective tax collection and increasing tax rates. Spain has already introduced a similar proposal, with Prime Minister Pedro Sánchez announcing plans to impose a tax of up to 100% on real estate purchases made by non-EU citizens who do not plan to live in the...

by Prague Morning Jan 16, 2025

Czechia Complete Pipeline to Replace Russian Oil Supply

Russia will no longer be able to ‘blackmail’ the Czech Republic, Prime Minister Petr Fiala told reporters. The Czech prime minister said Tuesday his country no longer needed to import Russian oil, following the completion of an expansion of the Transalpine Pipeline (TAL) from Italy. The contract to expand the pipeline was signed in May 2023, more than a year after Russia’s invasion of Ukraine led to sanctions on Russian energy imports. “The construction of this expansion has now been completed. Russia can no longer blackmail us and we have a guarantee that we can completely supply ourselves with oil from the West,” Prime Minister Petr Fiala told reporters. TAL brings oil from the Italian port of Trieste to southern Germany, where it connects to the IKL pipeline to the Czech Republic. The expansion has doubled oil capacity for the EU and NATO member to eight million tons a year. Finance Minister Zbynek Stanjura said the expansion cost 1.5 billion Czech koruna ($61 million) and was financed by state-run oil transit company Mero. The country has already completely weaned itself off Russian natural gas. The Czech Republic gets most of its oil via the Druzhba pipeline from Russia, launched in...

by Prague Morning Jan 14, 2025

“Live in Russia!” Embassy Offers Czechs “Humanitarian” Visas

The Russian Embassy in Prague has introduced a new type of visa targeted at Czechs who align with what Russia describes as “traditional Russian spiritual and moral values.” However, Czech Foreign Ministry spokesperson Daniel Drake has criticized the initiative, calling it part of Russia’s “information war against the West.” Russia’s New “Humanitarian Support” Visa The visa, valid for 90 days, was established under a decree by Russian President Vladimir Putin. According to the Russian Embassy, the visa is open to citizens of countries included on a specific list. These nations, Russia claims, promote “destructive neoliberal ideological positions that contradict traditional Russian values.” The list includes countries such as the Czech Republic, Austria, Germany, Bulgaria, and Spain. Applicants do not need to demonstrate knowledge of the Russian language, history, or legal system. However, they must provide a criminal record certificate, which must be apostilled or legalized, translated into Russian, and notarized. The embassy notes that the notarization can be completed by a Russian consular official or a certified notary in Russia. Additional Requirements for Residency For those seeking temporary residence, additional documentation is required. This includes proof from the Ministry of Internal Affairs that the applicant does not use narcotics and...

by Prague Morning Jan 09, 2025

Czech Republic Ready to Discuss Higher Defence Spending, PM Says

The Czech Republic is prepared to discuss raising defense spending and 3% of gross domestic product may be a realistic level to reach within several years, Prime Minister Petr Fiala said on Wednesday. The government said this week the NATO member country spent more than the NATO benchmark of 2% of GDP on defense last year for the first time in two decades, but incoming U.S. President Donald Trump has said NATO countries should spend 5%. As of 2025, some NATO members like Italy, Canada, or Spain have not even reached the current 2% target, though the number of allies that do has risen to 24 last year. According to NATO estimates, Poland spent the greatest portion of its GDP on defense (4.12%) in 2024, followed by Estonia (3.43%) and the U.S. (3.38%). Last February, Trump sparked international outrage by saying he would urge Russia to do “whatever the hell they want” to NATO member countries failing to meet defense spending criteria, in a declaration indicating his disregard for the alliance’s collective defense principle. Trump is not the only top official to call for an increase — NATO chief Mark Rutte likewise said last month that “we are going to...

by Prague Morning Jan 08, 2025

Record-Breaking Year: 47 New Brands Entered the Czech Market Last Year

According to a survey by Cushman & Wakefield, which has been tracking new entries for 11 years, 47 brands entered the Czech market in 2024. This is the highest number of brands to enter the Czech market, compared to 40 brands in 2023. The F&B segment is represented by the largest number of brands, as in previous years. In the Palladium shopping centre in Prague, the flagship stores of Lviv Croissants and The Box Donut opened, in the Máj shopping centre the fast food Amerikanos, and in the Quadrio shopping centre the Georgian fresh bar SKA. On Prague’s premium shopping streets (high streets), Georgian fine dining Dergi in Revoluční and Ukrainian fine dining Nai in Kobrová, bubble tea Makamaka in Jungmannova, Matcha Crew in Rumunská, bar Nalyvky zi Lvova in Trojanova, the French olive oil store Oliviers&Co in Dlouhá, and Le Petit Beefbar of the famous steakhouse chain Beefbar on Wenceslas Square were introduced. Jan Kotrbáček, Head of Retail Agency CEE at Cushman & Wakefield: “While previously the majority of brands entering the Czech market came from Western countries, we now see a clear trend where newly entering brands are largely from the East, especially from Ukraine, Poland, Slovakia, and...

by Prague Morning Jan 07, 2025

Czech Republic Becomes Second Largest Beer Supplier to Russia

The Russian state media outlet RIA Novosti recently reported the largest beer exporters to Russia during the first ten months of 2024. According to their data, the top suppliers are Germany (105.3 thousand tons), the Czech Republic (33.1 thousand tons), and China (29.8 thousand tons). This report gained attention in the Czech media, prompting inquiries about its accuracy. The iDNES portal contacted the Czech Union of Breweries and Malthouses for clarification. However, the organization’s press secretary requested time to verify the figures before commenting. Meanwhile, the Czech News Agency (ČTK) confirmed that the export volume reported by RIA Novosti aligns with official data from the Czech Statistical Office (ČSÚ). Between January and October 2024, the Czech Republic exported nearly 33.1 thousand tons of beer to Russia—equivalent to approximately 62 million half-liter bottles. Russia: A Key Market for Czech Beer During this period, Russia ranked as the third largest export market for Czech beer producers, following Germany and Slovakia. Trinity Bank Chief Economist Lukáš Kovanda revealed that Czech beer exports to Russia increased by 27% year-on-year. The 2024 export volume even surpassed pre-pandemic and pre-invasion levels. For comparison, from January to October 2019, the Czech Republic exported roughly 60 million bottles...

by Prague Morning Jan 07, 2025

Czechs Face EU’s Highest Electricity Prices Amid Export Surge

The price of electricity for households in the Czech Republic has risen sharply, even though the nation is one of Europe’s largest electricity exporters. According to Eurostat, the cost reached €0.321 per kilowatt-hour in purchasing power parity (PPP) terms during the first half of last year. This marks an 85% increase compared to the same period in 2021 for a household with average consumption levels. Czech Prices Outpace Regional Neighbors The steep price hikes in the Czech Republic contrast starkly with trends in other Visegrad Four (V4) countries, where electricity costs have remained relatively stable, states Lukáš Kovanda Chief Economist at Trinity Bank. Slovak households paid an average of €0.1543 per kilowatt-hour, less than half of what Czech households were charged. Slovakia saw a modest increase of around 12% over the same period. Polish households fared even better, paying €0.1531 per kilowatt-hour, with a surprising 2% price reduction compared to the first half of 2021. Hungary boasts the lowest electricity prices not only in the V4 but also across the EU, at just €0.1234 per kilowatt-hour, a mere 1% increase over three years. A Sharp Shift in Czech Pricing Trends Electricity prices in the Czech Republic were once on par...

by Prague Morning Jan 04, 2025

Czech Republic Ranks Sixth Worst in EU for Business Conditions

The Czech Republic faces significant challenges in creating a supportive environment for businesses, ranking as the sixth worst among EU member states. The primary issues include soaring energy costs and limited access to financing, as revealed by the Prosperity and Financial Health Index. This marks a drop of two places compared to last year. Energy Prices as a Major Burden Rising electricity prices remain the most pressing concern for businesses. According to Milan Mařík, an analyst for the Europe in Data project, electricity costs for companies consuming between 500 and 1,999 megawatt hours more than doubled between 2021 and 2023. Businesses now pay the EU’s 13th highest rates for electricity, nearing the European average but with a sharper price increase compared to other nations. This energy burden makes it difficult for local businesses to compete, with costs hindering profitability and growth. By contrast, countries like Finland, which boasts the EU’s best business conditions, offer significantly lower electricity costs and other advantages, such as a thriving startup culture and low corporate taxes. Tax Increases Add to Struggles Corporate income tax in the Czech Republic rose from 19% to 21% this year, aligning with the EU average but further straining businesses. Historically,...

by Prague Morning Dec 19, 2024

Dvořák: Financial Transactions Could Push Czechia Toward the Euro

Martin Dvořák, Minister for European Affairs, believes that the Czech Republic’s adoption of the euro could depend on a shift in financial transactions. “My vision of qualifying for the UEFA Euro in 2028 while simultaneously adopting the euro isn’t going exactly as planned,” Dvořák remarked at a press conference. He emphasized that a significant rise in euro-based financial transactions could render the Czech koruna obsolete. Drawing parallels with Croatia, Dvořák explained: “It’s somewhat similar to what happened there. When euro transactions dominate, maintaining a separate currency becomes economically impractical.” At a recent cabinet meeting, Finance Minister Zbyněk Stanjura of the ODS party stressed the importance of building both political and public consensus for euro adoption. “We need either widespread political agreement or overwhelming public support—ideally both,” he said. Analysis Highlights Barriers to Euro Adoption Dvořák expressed surprise at the findings of a National Economic Council (NERV) analysis, which identified a lack of political and public backing as the main hurdles to adopting the euro. “It’s not strictly an economic issue,” he said, referencing the analysis discussed at a recent government meeting. STAN had proposed appointing a national euro coordinator, but the government ultimately rejected the idea. Dvořák emphasized that such...

by Prague Morning Dec 17, 2024

Bulgaria and Romania Become Fully Part of Schengen Area

European Union ministers on Thursday agreed to let Bulgaria and Romania fully integrate into Europe’s ID-check-free travel zone, known as the Schengen area, by lifting land border controls from next year, the EU’s Hungarian presidency said. Bulgaria and Romania joined the Schengen area in March after years of negotiations, providing free access for travelers arriving in both countries by air or sea. However, land border checks remained in place due to opposition, chiefly from Austria, over concerns that the two countries were not doing enough to prevent migrants from entering without authorization. “Interior ministers have just adopted a decision to lift internal land border controls with and between Bulgaria and Romania,” the Hungarian presidency posted on X. “A great victory for Bulgaria, Romania, and all of Europe!” Land border checks will end from Jan. 1. Romania’s Prime Minister Marcel Ciolacu said the decision would be a “major benefit” to his country’s economy and enable “faster journeys home for the millions of Romanians” living and traveling within the Schengen area. Freedom of movement is central to European integration. More than 420 million people live in the Schengen area, and their freedom to move across borders helps businesses and tourism to flourish. Romanian President...

by Prague Morning Dec 13, 2024

Czech Parliament Cuts Aid for Solar Industry

The Czech lower house of parliament approved changes in rules for state aid to solar power plants on Wednesday that may reduce support for some projects, drawing criticism from industry representatives who said they violated government commitments. The bill, which still needs approval by the upper house, requires power plants built in 2009-2010 – when profits were high – to produce annual profitability calculations that will be used to judge if they should get state aid. It also extends the scope of the calculation to the full lifetime of a plant rather than just the period in which state support is granted. Lawmakers did not approve some of the most controversial proposals, which would cut the allowed return on investment of solar plants, or halt aid paid for electricity produced at times when surplus production cuts market prices below zero. The government, which faces a parliamentary election next year, has said it needs to limit state aid to shore up the budget. Industry representatives said the bill was damaging. “It is absurd that the government is trying to fill holes in the budget by violating commitments to investors, Czech and European law,” Jan Krcmar, head of the industry group Solar...

by Prague Morning Dec 12, 2024

Majority of Czech Workers Fear Losing their Job Next Year

A majority of Czech employees fear job loss in 2025 and are considering changing jobs, driven by financial dissatisfaction, work-life balance, and limited career growth opportunities, according to a new survey. More than half of Czech employees are concerned about losing their jobs in the coming year, a new survey by personnel company Randstad CR has revealed. At the same time, a significant proportion of workers are considering changing jobs on their own initiative, driven primarily by dissatisfaction with wages. According to the survey, 54.4 percent of Czech workers fear job loss in 2024. Despite Czechia’s historically low unemployment rate — 3.8 percent in October — economic uncertainty stemming from the Covid-19 pandemic and high energy prices has heightened anxieties. Analysts predict unemployment could exceed 4 percent by early 2025 but remain relatively stable. As cited by Echo24, Randstad CR director Martin Jánský attributed these fears to broader economic and technological factors. “The turbulent development of the economy in recent years has left a psychological impact,” he explained. “Additionally, sectors such as automotive are particularly vulnerable to developments abroad, notably in Germany.” Concerns about technological advancements, including artificial intelligence, further contribute to the insecurity with Jánský noting that Rapid technological changes...

by Prague Morning Dec 04, 2024

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