Politics & Economics

Czechia Plans Three Small Modular Reactors as Part of European Nuclear Push

The projects are planned for Temelín, Dětmarovice and Tušimice as Prague looks to secure a role in the Rolls-Royce SMR supply chain. Czechia is preparing to build three small modular reactors as part of a wider strategy to expand nuclear power and position domestic industry inside a growing European supply chain. The planned sites are Temelín, Dětmarovice and Tušimice, while officials are also examining other possible locations, Industry and Trade Minister Karel Havlíček said after visiting Škoda JS in Pilsen with Prime Minister Andrej Babiš. Havlíček said the program should not be viewed only as a domestic energy project, but as part of a broader European nuclear effort in which Czech companies could play a major manufacturing role. “At the moment, we have three locations, and we are looking for other possible locations, but this is already a fairly decent number. Not to mention that our ambition is to be in the supply chain. This means that for us this is not just a Czech project, but at least a pan-European one,” Havlíček said. The minister said the government wants Czech industry, including Škoda JS, to capture a significant share of future SMR production, adding that components made in the...

by Prague Morning Jun 14, 2026

Czechia Rises in EU Prosperity Index – Housing and Digitalization Remain Weaknesses

The Czech Republic has improved its position in the latest EU Prosperity Index 2025, ranking 14th out of 27 member states. This marks its strongest result since the index was first published in 2022, when the country placed slightly higher at 13th. At the top of the ranking are Sweden, Denmark and Finland. Greece remains in last place, followed by Bulgaria and Slovakia. The country’s overall improvement was driven mainly by the “State of the Economy” indicator, which rose five places year-on-year. With a ninth-place result in this category, the Czech Republic now ranks among the ten most economically stable EU countries. The development reflects easing inflationary pressure and a shift in income distribution. The share of gross national income in GDP increased from 95% to 99%, suggesting that a larger portion of wealth generated in the economy remains within the country. Despite these gains, the index highlights persistent structural weaknesses. Housing remains one of the main pressure points. The Czech Republic ranks 23rd in the EU in this area. The average price of an apartment equals 13.6 annual salaries, and around 10% of households spend more than 40% of their income on housing costs. Digitalisation also continues to lag...

by Prague Morning Jun 01, 2026

Average Czech Salaries Reach €2,024 per Month, Overtaking Slovakia

The average salary in Czechia has climbed above the €2,000 mark, placing the country ahead of Slovakia and narrowing the gap with Poland in the race for higher wages across Central Europe. According to a new analysis by consulting firm Forvis Mazars, employees in the Czech private sector earn an average of €2,024 per month this year, equivalent to roughly CZK 48,967. That represents a year-on-year increase of 9 percent, making the Czech Republic one of the fastest-growing wage markets in the region. Among the countries of the Visegrad Group (V4), only Poland reports higher average earnings. Polish private-sector wages reached €2,156 this year, up 8 percent compared with the previous year. The Czech Republic’s performance places it ahead of Slovakia, where the average monthly salary stands at €1,569. Wage growth there has been considerably slower, rising by just 3 percent over the past year. Hungary recorded growth comparable to the Czech Republic. Average private-sector salaries increased by 9 percent to €1,948, according to the report. The findings come from Forvis Mazars’ annual review of tax systems and labor market indicators across 22 countries in Central and Eastern Europe. The report highlights the continuing upward pressure on wages across the...

by Prague Morning May 31, 2026

One Million Foreign Workers: Czech Economy Increasingly Depends on Them

At first glance, the Czech labour market may look balanced. There are tens of thousands of job vacancies and hundreds of thousands of registered job seekers. But this picture is misleading. Employers are not looking for “available workers” in general, but for specific people with specific skills, shifts and locations. That is where the real shortage begins. The Czech labour market has been operating under this pressure for years, even if it is still often described as a temporary issue. In reality, it is becoming a structural feature of the economy, writes Tomáš Surka, managing partner of Orienta Czech. According to Labour Office data, there were more than 94,000 vacancies in the Czech Republic at the end of April 2026, alongside over 364,000 registered job seekers. On paper, this should be enough. In practice, it is not. Companies struggle to match candidates with the requirements of production, logistics, healthcare, construction and hospitality. The gap becomes clearer when looking at broader estimates. The Ministry of Labour and Social Affairs has previously indicated that employers are searching for nearly 250,000 additional workers, with around one in five companies reporting that labour shortages limit their operations. The problem is not only recruitment. In...

by Prague Morning May 27, 2026

Israel’s Foreign Minister Arrives in Prague for High-Level Meetings

Israel’s Foreign Minister Gideon Sa’ar touched down in Prague on Tuesday for a two-day diplomatic visit, with the bulk of his schedule packed on Wednesday. Sa’ar is set to meet Czech Foreign Minister Petr Macinka of the Motorists party, followed by a separate audience with President Petr Pavel. Beyond the bilateral talks, Sa’ar will take part in a Czech-Israeli business forum attended by dozens of Israeli companies. The visit builds on months of diplomatic momentum. Macinka publicly announced Sa’ar’s upcoming trip last week, but the groundwork was laid well before that. Sa’ar had already visited the Czech Republic in January, and Macinka traveled to Israel in mid-April in return. That April trip produced a concrete outcome: the two ministers agreed to establish a joint commission aimed at deepening trade and cooperation between the two countries, with a specific focus on healthcare and cybersecurity. Wednesday’s meetings in Prague are expected to pick up where those talks left off, according to the Czech Foreign Ministry. The agenda will also address broader regional tensions. Both sides plan to discuss the ongoing crises across the Middle East and how those developments are shaping policy within the European Union. Would you like us to write...

by Prague Morning May 19, 2026

Czech Republic Officially Abandons 2030 Euro Adoption Target

The Czech government has stepped away from earlier expectations that the country could adopt the euro by 2030. After a cabinet meeting on May 11, Prime Minister Andrej Babiš said the government would no longer commission annual reports evaluating whether the country meets the conditions to join the eurozone. “There is no reason to revisit the issue every year. This government does not intend to adopt the euro,” Babiš said, adding that the decision should be left to a future administration in the early 2030s. The reports had been prepared jointly by the Czech Ministry of Finance and the Czech National Bank. They tracked the country’s progress toward meeting the economic conditions required for euro adoption and assessed how closely the Czech economy aligns with the eurozone. Those evaluations consistently pointed to strong economic ties with eurozone countries, particularly in trade and manufacturing. At the same time, they highlighted ongoing gaps in wages and prices, as well as structural differences that could affect how the Czech economy responds to external shocks. The country’s reliance on industry, for instance, makes it more sensitive to fluctuations in global demand than many eurozone economies. The decision to abandon the reports drew criticism from...

by Prague Morning May 12, 2026

Low Inflation, Higher Bills — The Czech Spending Paradox Explained

Despite headline inflation holding below two percent at the start of 2025, Czech households are feeling a very different reality. A new survey by Ipsos found that nearly two-thirds of households — 65% — are spending more each month than they were a year ago, with food prices and a broad rise in the cost of goods leading the way. The findings point to a growing divide along income lines. Among households earning up to 30,000 Czech crowns per month, nearly one in three respondents — 29% — reported a significant jump in expenses. In households earning above 70,000 crowns, that figure drops to just 8%. “Most households are dealing with rising costs, but the pressure is hitting those with lower incomes hardest,” said Jaroslav Ondrůšek, chief analyst at Home Credit. Women and people between the ages of 45 and 53 are also among those reporting the steepest increases. Where the Money Is Going Respondents were clear about what is driving their costs up. Nearly two-thirds pointed to food as the primary factor. Around 42% cited a general rise in the price of goods, while 40% named higher energy, transportation, and service costs as the main pressure on their budgets....

by Prague Morning May 10, 2026

Czechia Has Lowest Poverty Risk in EU, but Reality Tells a Different Story

The Czech Republic is often presented as the country with the lowest level of poverty in the European Union. According to data from Eurostat, around 11.5 percent of people were at risk of poverty or social exclusion last year, compared to an EU average of 20.9 percent. This places the country ahead of neighbors such as Germany, Austria and Poland. In Germany, the share stood at 21.2 percent, while Austria reported 18.8 percent and Poland 15 percent. Slovakia recorded 16.7 percent. At first glance, the figures suggest a strong position. The Czech Republic has ranked near the top of this indicator for years, reinforcing the image of a country with relatively low inequality. Yet economists and social analysts say the data does not fully capture how people actually live. The Eurostat indicator defines poverty as earning less than 60 percent of the national median income. In practical terms, that threshold was about 19,090 crowns per month for an individual in the Czech Republic last year, and 24,817 crowns for a single parent with a young child. The measure also considers whether households can afford basic needs such as heating, holidays or unexpected expenses. But critics argue the method focuses too...

by Prague Morning May 06, 2026

Ex-Czech Justice Minister Charged Over Bitcoin Donation Scandal

Former Czech Justice Minister Pavel Blažek has been charged amid an ongoing criminal investigation into a controversial bitcoin donation accepted by the Ministry of Justice during the previous administration. Detectives from the National Headquarters for Organized Crime launched criminal proceedings on Monday against three more people linked to the case, prosecutors said. The newly charged suspects are Blažek, a senior figure in the Civic Democratic Party, his former deputy Radomír Daňhel, and Brno lawyer Kárim Titz, who represented programmer Tomáš Jiřikovský, the man who donated the bitcoins to the state. In a press release on Monday, the Chief Public Prosecutor’s Office in Olomouc said the three are accused of abuse of authority by an official and legalization of proceeds from crime. According to prosecutors, the alleged abuse of power relates to an official exercising authority in breach of the law with the intention of giving someone else an illegal advantage. The money laundering allegations concern the transfer of assets believed to be proceeds of another person’s criminal activity, as well as alleged attempts to make it substantially harder to determine the origin of those assets. If convicted, the accused face prison sentences of between 5 and 12 years. The criminal...

by Prague Morning May 05, 2026

Zelenskyy and Babiš Meet in Yerevan Ahead of Major European Summit

Ukrainian President Volodymyr Zelenskyy met Czech Prime Minister Andrej Babiš in Yerevan on Sunday, marking their first in-person talks since Babiš took office in December. The meeting took place on the sidelines of the 8th European Political Community (EPC) Summit, bringing together European leaders at a key moment for the continent’s political coordination. Zelenskyy thanked the Czech people for what he described as “tremendous and heartfelt support” for Ukraine since the beginning of Russia’s full-scale invasion. Both leaders discussed bilateral relations between Ukraine and the Czech Republic, with Zelenskyy noting potential opportunities to deepen cooperation in several areas. A significant part of the talks focused on Ukraine’s path toward European Union membership and the next steps in its ongoing accession process. EU integration remains one of Kyiv’s strategic priorities, and Czechia has been among the countries consistently supporting Ukraine’s European aspirations. The meeting comes just one day before the EPC Summit, scheduled for today, May 4, under the theme “Building the Future: Unity and Stability in Europe.” The summit will gather nearly fifty heads of state and government, along with leaders of international organizations, to discuss Europe’s shared challenges and long-term priorities. It will be co-chaired by Armenian Prime Minister...

by Prague Morning May 03, 2026

Eurostat: Where Work Pays Most and Least Across the EU

The cost of employing workers across the European Union rose again in 2025, with differences between countries continuing to stretch. New figures from Eurostat show that employers now pay nearly five times more for an hour of work in the bloc’s most expensive country than in its cheapest. Across the EU economy, the average hourly labor cost reached €34.9 last year. Within the eurozone, where 20 countries share the single currency, the average stood higher at €38.2. Both figures marked an increase from 2024, when costs were €33.5 and €36.8 respectively, reflecting steady upward pressure on wages and employer contributions. The divide between member states remains stark. Bulgaria recorded the lowest hourly labor cost at €12, followed by Romania at €13.6 and Hungary at €15.2. At the other end of the scale, Luxembourg topped the list at €56.8 per hour. Denmark and the Netherlands followed, with costs of €51.7 and €47.9. Labor costs in Europe are made up of wages and additional expenses paid by employers, mainly social security contributions. These non-wage costs account for roughly a quarter of total labor expenses across the EU, at 24.8 percent, and slightly more in the eurozone at 25.6 percent. Their share varies...

by Prague Morning Apr 28, 2026

Czechia Moves Closer to Long-Term Gas Supply Deal with Azerbaijan

The proposed long-term agreement would see Prague secure up to 2 billion cubic meters of gas annually starting later this decade. The Czech Republic is moving closer to a significant new energy agreement with Azerbaijan, aiming to import up to 2 billion cubic meters of natural gas per year as part of efforts to diversify supply sources. Industry and Trade Minister Karel Havlíček said during a visit to Azerbaijan that deliveries could begin between 2028 and 2029. While the contract has not yet been formally signed, Havlíček indicated that negotiations are advanced and the deal is effectively promised. Prime Minister Andrej Babiš also confirmed that the Czech energy group ČEZ is actively seeking additional gas supplies as the government seeks to secure long-term energy stability. The planned imports would represent a notable share of Czech demand. According to the Energy Regulatory Office, the country consumed 7.2 billion cubic meters of gas last year, a rise of 6.5 percent compared to the previous year. Currently, Norway remains the Czech Republic’s main supplier, while liquefied natural gas (LNG) shipments are largely sourced from the United States. Havlíček said the annual cost of Azerbaijani gas could reach around 20 billion Czech crowns, depending...

by Prague Morning Apr 28, 2026

NEWSLETTER

Subscribe for our daily news
Most Popular

Hidden Havens: 3 Prague Restaurants That Feel Like the Countryside

Tesco May Leave the Czech Market, Financial Times Reports

Czech Republic to Witness Its Biggest Solar Eclipse Until 2075