The Czech retail market welcomed 16 new international brands in the first half of 2026, according to a report by Cushman & Wakefield. Fourteen of the brands opened their first Czech locations in Prague, while one launched in Ostrava and another in Pardubice. The food and beverage sector remained the strongest driver of expansion, accounting for seven new brands. One of the most high-profile openings was BOSS Café, which launched on Prague’s Na Příkopě Street next to the BOSS flagship store. The café concept currently exists in only a handful of cities worldwide, including London and Bangkok. Other newcomers included Slovak café Choco Boss, Ukrainian supermarket Best Market, Canadian confectionery Choco Choo, Italian sports nutrition retailer Volchem, German restaurant Home of Dumplings, and YO! Sushi, which opened its first Czech branch in Prague after its parent company entered the market last year with Sushi Circle. Fashion was the second most active category, with four new brands entering the market. Romanian accessories label Alisa Enco opened at the Mandarin Oriental Prague, while American fashion brand Kenneth Cole chose Westfield Chodov for its first Czech store. German menswear brand Digel debuted at Fashion Arena Prague Outlet, and Italian luxury label Ermanno Scervino...
Germany’s industrial slowdown is beginning to affect Czech factories, exposing how closely the two economies remain linked through supply chains, particularly in automotive and machinery production. According to consultancy EY, more than 120,000 jobs were cut in German industry in 2025, almost twice as many as a year earlier. The decline reflects weaker output, falling revenues and reduced confidence among German companies. EY analyst Jan Brorkhilker said German industry is facing a deep downturn, with companies adjusting production and staffing in response to weaker demand. Business associations in Germany, as reported by Reuters, expect further pressure on the labour market in 2026 as the economic slowdown continues. German manufacturers are dealing with several overlapping problems. Energy costs remain high after the European energy crisis, global demand has weakened, and companies face rising regulatory and transformation costs linked to decarbonisation and digitalisation. These factors are now feeding into hiring decisions. Surveys among German industry groups show that most companies expect further workforce reductions next year, while only a small share plan to expand. Radek Špikar from the Czech Confederation of Industry and Transport said the situation in Germany is a concern for Czech exporters. “We hope Germany will find a new...
The Czech Republic already fulfils nearly all economic conditions required to adopt the euro, according to a new Convergence Report published by the European Commission. The report suggests that the remaining obstacles are no longer economic, but political and institutional. The report evaluates EU member states outside the euro area on their readiness to join the single currency. After Bulgaria joined the eurozone this year, 21 EU countries now use the euro. Denmark remains outside due to an opt-out agreement. The assessment therefore focuses on five countries: the Czech Republic, Poland, Hungary, Romania and Sweden. The Czech Republic stands out among them. The Commission concludes that it meets three of the four main economic convergence criteria, placing it among the most prepared countries alongside Sweden. Inflation, debt and interest rates within limits Inflation has returned below the reference threshold after several years above target. In May, the annual average fell to 1.9%, below the benchmark level of 2.7%. The Commission expects it to remain within the required range through 2027. Public finances also comply with Maastricht rules. The general government deficit stood at 2.1% of GDP in 2025, while public debt reached 44.3% of GDP. Both figures remain below the...
The latest escalation between the two political opponents has ended up in the country’s constitutional court, which is expected to take up the matter on Wednesday. Czech President Petr Pavel on Tuesday said that he had filed a lawsuit against the government, challenging Prime Minister Andrej Babiš’s decision to not include him in the government delegation attending the NATO summit in Ankara in July. The competency suit, which was lodged with Czechia’s Constitutional Court, asks for clarity on who has the authority to decide whether the head of state may attend the NATO summit. The court is due to take up the matter during its plenary session on Wednesday. In a statement, Pavel argued Babiš was trying to “exclude” him from the summit, and thus “limiting the role granted to him by the Constitution.” The president pointed out that his predecessors had attended all previous NATO summits, and that he had been present at every one of the alliance’s gatherings since he took office in 2023. After months of contention over who would represent Prague in Ankara, Babiš on Monday announced the head of state could not join the official delegation because “this summit will be different from previous ones.”...
Housing and food prices in the Czech Republic are nearing Western European levels, while salaries continue to lag. New data published by Eurostat highlight a growing imbalance in the Czech economy. While average price levels remain below those in much of Western Europe, some of the most important expenses facing households have nearly caught up with richer countries. Overall, prices in the Czech Republic stand at 89.4 percent of the European Union average. That remains lower than Germany, where prices reach 108.3 percent of the EU average, and Austria at 113 percent. However, the broader figure masks substantial differences between sectors that directly affect everyday life. Housing is the clearest example. The cost of housing, energy, and related household services in the Czech Republic has reached 107.1 percent of the EU average. Germany records 113.9 percent and Austria 113.4 percent, leaving only a relatively small gap between Czech households and those in Western Europe. The contrast with neighboring countries to the east is striking. Housing-related costs amount to just 52.2 percent of the EU average in Poland and 80.4 percent in Slovakia. This means Czech residents now face housing expenses that are far closer to German levels than to those...
The Czech Republic has taken a major step toward joining Europe’s growing artificial intelligence infrastructure network after the government approved support for a bid to host a European AI Gigafactory. At its meeting on Monday, the cabinet authorized the Ministry of Industry and Trade to sign a joint procurement agreement with the EuroHPC Joint Undertaking, opening the door for Czech partners to compete for one of the EU’s flagship AI projects. The planned AI Gigafactories are intended to provide Europe with powerful computing infrastructure capable of developing, training and operating advanced artificial intelligence models. The facilities would serve as large-scale AI data centers, helping reduce Europe’s dependence on technology and computing resources from outside the continent. Under the proposed model, construction of the Czech facility would be financed by private investors. The state would not directly fund the project but would commit to using part of the computing capacity if the Czech bid is selected. According to the government, this would give public institutions and domestic organizations access to advanced computing resources under favorable financial conditions. Officials argue that hosting an AI Gigafactory could bring benefits beyond technology development. The project could attract substantial private investment, create opportunities for research...
Coca-Cola is marking a major milestone in Czechia this year. The company has been producing its beverages locally for 55 years, growing from a niche product available only to a select few during the communist era into one of the country’s most widely consumed drinks. According to company figures, Coca-Cola’s Czech facilities produced 415.9 million liters of beverages in 2025 alone. When licensed production first began in the country in 1971, annual output stood at around 18.4 million liters. The story of Coca-Cola in Czechia began before local manufacturing existed. Many Czechs first encountered the drink at the end of World War II through American soldiers stationed in Europe. During the communist period, however, access remained limited. Bottles were mainly sold through Tuzex stores, which specialized in foreign goods, or in hotels catering to foreign visitors. A turning point came in 1971, when licensed production using the original Coca-Cola concentrate was launched in Modřice, near Brno. That move established the foundations for what would eventually become one of the company’s key operations in Central Europe. Another important chapter followed after the fall of communism. In 1993, Coca-Cola opened a production facility in Prague’s Kyje district, which has since become the...
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...
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...
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...
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...
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...
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