Politics & Economics

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 Prague Morning 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

Lunch Prices in Czechia: Prague No Longer the Most Expensive

Lunch in Prague used to be the most expensive experience in the Czech Republic two years ago. However, the first five months of this year show a significant change. In May, the capital city fell to fifth place in terms of the most expensive lunches in the country. The Central Bohemian region, partly due to its proximity to Prague, now leads with an average lunch price of CZK 208. Pardubice, the Ústí Region, and South Bohemia have also surpassed Prague, where the average lunch costs CZK 198. “In the South Bohemian Region, there’s less competition between restaurants, and the purchasing power of Austrians and Germans who cross the border to eat there also increases, leading to higher restaurant prices,” said economist Lukáš Kovanda. These figures come from Pluxee, the largest benefits provider in the Czech Republic, formerly known as Sodexo Benefits. Lunch prices have hit record highs in the past. In December 2023, average lunch prices were the highest ever, with a meal in the Central Bohemian Region costing CZK 214 on average and CZK 201 in Prague. This led many Czechs to bring lunch from home to heat up at work. “Inflation and rising prices caused about 30 percent...

by Prague Morning Jun 25, 2024

US Chip Manufacturer onsemi to Invest $2 Billion in Czechia

American chipmaker ON Semiconductor Corporation (onsemi) is investing up to $2 billion to expand its factory in the Czech Republic. Onsemi and the Czech government announced the new investment in its existing factory in the Czech town of Roznov pod Radhostem on Wednesday. The investment is the biggest in the country since the split of Czechoslovakia in 1993. Czech Prime Minister Petr Fiala said the investment would multiply the plant’s current output, which is 10 million chips per day. The company, based in Scottsdale, Arizona, said the number of jobs created in Roznov will increase to 3,000 from the current 1,700. Onsemi plans to build a silicon carbide manufacturing facility that would give greater efficiency to semiconductors, which are critical computer components. Onsemi supplies chips that go into electric cars and help with driver-assistance systems like cameras and sensors. Its silicon carbide chips also help extend the range of electric vehicles. Onsemi is “one of the only companies in the world” with the ability to manufacture semiconductors that use silicon carbide, according to the press release. Silicon carbide is a “critical material for high-power, high-temperature applications, and is extremely difficult to produce,” it says. Silicon carbide chips are more expensive...

by Prague Morning Jun 20, 2024

Czechia Unveils New Portal to Attract One Million Foreign Tech Talent

Authorities in Czechia have recently launched a new portal called ‘Work in Czechia‘ aimed at attracting foreign talent to bolster the skilled labor market. This initiative aligns with the European Institute for Innovation and Technology’s (EIT) Deep Tech Talent Initiative, which seeks to upskill one million individuals in deep tech fields by 2025. The country has been actively inviting foreign professionals with the skills and ambition needed to contribute to an economy that highly values these attributes. This initiative reflects similar recruitment efforts undertaken from Scandinavian countries in Europe. Further emphasizing this strategic alignment, Czechia, according to a statement on the website, is coordinating with other European nations that are actively recruiting tech experts. The portal is available in Czechia.EU, provides a comprehensive guide for foreign professionals, covering all aspects of life and work in the country. This includes detailed information on visa and immigration procedures, as well as tips for cultural engagement. The head of the CzechInvest agency, Jan Michal, highlighted that the platform offers numerous opportunities, particularly in the technology sector. It also provides essential guidance on navigating the visa process, further facilitating the integration of international talent into Czechia’s workforce. “The website provides foreign talents with a...

by Prague Morning Jun 11, 2024

Czech Inflation Slows More Than Expected in May

Czech inflation slowed more than expected in May, to a headline rate of 2.6% year-on-year following a surprise jump to the top end of the central bank’s tolerance band in the previous month, likely keeping the path clear for further interest rate cuts. Year-on-year inflation eased from 2.9% recorded in April and was below a Reuters poll forecast of 2.8%. The lower-than-expected figure weighed on the crown, which eased past 24.70 per euro for the first time in a week. On a monthly basis, consumer prices were flat. Grocery prices were the main contributing factor, with the price of flour and eggs, for example, dropping significantly (by 23.5 percent) compared to last May. Fruit and meat also got cheaper, 6.7 and 5.8 percent respectively. Following the previous inflation surprise and after data in recent weeks showing a building recovery in consumer demand and real wage growth, markets have scaled back bets on the pace of Czech National Bank (CNB) rate cuts this year. The bank, which targets inflation at 2% with a tolerance band of 1 percentage point above or below that, has cut its key two-week repo rate by 175 basis points to 5.25% since December, including cuts of...

by Prague Morning Jun 11, 2024

Czechia Sees End of Russian Oil Dependence by Mid-2025

The Czech Republic will end its dependence on Russian oil by mid-2025 thanks to an expansion of the Transalpine Pipeline (TAL) from Italy, Prime Minister Petr Fiala said Tuesday. TAL brings oil from the Italian port of Trieste to southern Germany, where it connects to the IKL pipeline taking it to the Czech Republic. The pipeline extension will double capacity for the EU and NATO member to eight million tons when it becomes operational next year. The country has already wean itself off Russian natural gas completely in the wake of Moscow’s invasion of Ukraine. “Work on the expansion of the TAL pipeline has started, which means we will shake off the dependence on Russian oil after 60 years,” Fiala told reporters during a visit to the state oil company Mero in Nelahozeves, north of Prague. “We expect full launch in the first half of 2025 at the latest,” he said. The Czech Republic gets most of its oil via the Druzhba pipeline, launched in the 1960s when the country was part of Czechoslovakia, which was controlled by the Soviet Union. Shortly after Russia invaded Ukraine in February 2022, the European Union imposed a ban on most oil imports from...

by Prague Morning Jun 05, 2024

Czech Real Wages Return to Growth After Two-Year Inflation Squeeze

Czech average wages grew by 4.8% year-on-year in real terms in the first quarter, the statistics office said on Tuesday, the first increase in over two years as inflation eased back to the central bank’s target range. The real increase was higher than analysts’ median forecast of 4.1% and the Czech National Bank’s prediction of 4.2%. Nominal wages increased by 7.0% year-on-year to begin 2024. Central bank policymakers are closely tracking changes in wages as they navigate an easing policy started last December that has delivered 175 basis points in cuts to the key two-week repo rate, which stands at 5.25%. Markets are watching for signs the central bank may slow its easing pace, after it cut in 50-basis-point steps at the past three meetings. Worker wages fell consecutively in real terms for nine straight quarters to the end of 2023, as a surge in prices in the past few years pushed inflation to double digits. “After nine quarters there was thus a turnabout, although in some economic activities – (like) industries – the wage of the employees has not increased in real term,” Jitka Erhartova, the head of the statistics office’s labour unit, said. Inflation fell to the central...

by Prague Morning Jun 04, 2024

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