Politics & Economics

Is Prague Really the Fourth Richest Region in Europe?

Prague has recently been ranked as the fourth richest region in Europe, surpassing cities like Berlin, Brussels, and Paris based on Gross Domestic Product (GDP) per capita. However, does this metric accurately reflect the lives of Prague’s residents? According to a Eurostat survey, Prague’s GDP per capita in 2022 was 207 percent of the European average. This means the city’s economic output per person is significantly higher than in many other regions. GDP per capita measures the total economic output divided by the population. In 2022, the Czech Republic’s overall GDP per capita was over CZK 634,000, while Prague’s was nearly CZK 1.5 million. Pavel Sobíšek, chief economist at UniCredit Bank, explains that regional GDP is measured based on where businesses are registered, not necessarily where they operate. With over 660,000 entities registered in Prague, many conduct activities elsewhere. Additionally, GDP figures are adjusted for purchasing power parity, which considers the lower cost of living in the Czech Republic but may not fully account for Prague’s higher living costs. Sobíšek recommends looking at net income per capita for a more accurate comparison. This measure shows Prague’s economic advantage as more modest compared to other regions. Vladimír Kermiet from the Czech...

by Prague Morning May 27, 2024

Food Prices Rising Again: Which Items Are Most Affected

Food prices are still on the rise, with some vegetables increasing by up to ten percent. Retailers seem to be reverting to their old pricing strategies after the VAT cut, says Trinity Bank’s chief economist Lukas Kovanda. Another wave of price hikes is hitting the market. This trend is not only visible in food prices but is also impacting overall inflation. “The main contributor to inflation in April was higher food prices. They rose by 1.7 percent, driven mainly by increases in pork, poultry, vegetables, dairy products, bakery items, and chocolate. Among alcoholic beverages, wine prices rose the most,” explained David Marek, chief economist at Deloitte and advisor to the president. Data from the Czech Statistical Office shows rising prices for rice, flour, meat, and fish. While food items became cheaper early in the year due to a VAT reduction from 15 to 12 percent, many prices have since increased significantly. From January to April, rice prices went up by 6.7 percent, flour by 6.9 percent, and salmon fillets by 4.5 percent. Soft curd saw an 8.8 percent rise, and lard jumped by 9.8 percent. There were also notable price fluctuations in vegetables and fruits. Prices for lemons, carrots, and...

by Prague Morning May 22, 2024

Czechia Among Countries Most Targeted by Russian Hybrid Activities, Says NATO

The Czech Republic is among the countries most targeted by Russian hybrid activities, according to a recent study by NATO. Alongside Estonia, Germany, Latvia, Lithuania, Poland, and Britain, the Czech Republic faces a significant threat to its security from Russian interference. NATO expresses deep concern over Russia’s use of sabotage, disinformation campaigns, violence, and cyber attacks. Recent events underscore this threat. In the UK, authorities charged two individuals suspected of ties to Russian intelligence for planning attacks on Ukrainian-affiliated businesses. In the Czech Republic, investigations into the Vrbětice warehouse explosion reveal Russian involvement. Moreover, a network dubbed “Voice of Europe” has been exposed for attempting to influence politicians and activists. Similar incidents have occurred across Europe. In April 2024, British authorities charged two individuals with aiding Russian intelligence in planning an arson attack on a facility storing aid for Ukraine. Meanwhile, in Poland, a man was arrested for allegedly spying for Russia and plotting to assassinate the Ukrainian president. In Germany, two arrests were made for planning physical attacks to disrupt German aid to Ukraine. Estonian officials have accused Russia of hybrid operations targeting the Baltic states, including facilitating refugee influxes to pressure EU and NATO borders. Allegations include jamming...

by Prague Morning May 12, 2024

Czechia Sees Lowest Unemployment Rate in March in All of EU: Eurostat

Czechia’s seasonally-adjusted unemployment rate remained unchanged month on month at 2.9% in March, Eurostat, the European Union’s (EU) statistical office, reported on Friday. This is the lowest result in the EU, Eurostat wrote, adding that the same unemployment rate was also recorded in Poland. The number of unemployed decreased to 515,000 in March from 516,000 in February, Eurostat pointed out. The general level of unemployment in the EU lay at 6 percent in March, a decrease by 0.1 percent when compared to February. On the other hand, Greece and Spain maintained the highest unemployment rates; with more than one in ten people who are able registering for employment. Eurostat estimates that 13.258 million persons in the EU, of whom 11.087 million in the euro area, were unemployed in March 2024. Compared with February 2024, unemployment decreased by 74 thousand in the EU and by 94 thousand in the euro area. Unemployment by sex In March 2024, the unemployment rate for women was 6.4% in the EU, stable compared with February 2024, and the unemployment rate for men was 5.7%, down from 5.8% in the previous month. In the euro area, the unemployment rate for women was 7.0%, stable compared with...

by Prague Morning May 04, 2024

Czech-Sanctioned Pro-Russian Propagandist Granted Asylum in Slovakia

Slovakia has granted temporary asylum to Artem Marchevsky, a pro-Russian propagandist and former Ukrainian TV producer, Czech newspaper Denik N reported on April 30. The decision to grant asylum was made by the Slovak Interior Ministry, according to Marchevsky’s lawyer, Leonid Kushnarenko. Czechia previously denied asylum to the propagandist, imposing sanctions on him and freezing his assets in the country. Czech authorities suspect Marchevsky, along with former Ukrainian MP Viktor Medvedchuk, of leading a Russian influence network behind the website Voice of Europe, known for disseminating pro-Russian propaganda. Slovakia’s Interior Minister Matus Sutaj Estok declined to comment on the matter. On March 29, a joint investigation by the German newspaper Spiegel and Denik N reported that German Bundestag member Petr Bystron had received funds from a “Russian influence network.” The Voice of Europe regularly published calls from European politicians to cease support for Ukraine, and some authors of those calls were allegedly paid, as stated by Denik N. On March 28, Belgian Prime Minister Alexander De Croo said members of the European Parliament had received money from Moscow for spreading Russian propaganda. He elaborated on the “close cooperation” between Belgian and Czech special services in dismantling the Russian propaganda network....

by Prague Morning May 02, 2024

Czechs May Soon Pay More for Sugary Drinks

The Czech Republic is considering a new tax on sugary drinks in an attempt to combat rising obesity rates, particularly among children. Health Minister Vlastimil Válek believes a levy on sugary beverages will discourage consumption and improve public health. Government Divided on Sugar Tax The proposal has garnered support from most coalition parties, including the Mayors and Pirates. They argue that similar taxes in other European Union countries have proven effective in reducing sugar intake and generating revenue for public health initiatives. The National Economic Council (NERV) also backs the plan, suggesting a tax starting at 3.40 CZK per liter for drinks exceeding 50 grams of sugar per liter, with an additional 35 cents for every subsequent 10 grams. However, the opposition, particularly the ODS party, remains skeptical. They argue that the tax would unnecessarily complicate the tax system and unfairly burden consumers, especially after the recent VAT increase on beverages. A Tax on Vice or a Public Health Measure? Minister Válek emphasizes the need to regulate sugary drinks, highlighting their negative impact on children’s health. He believes the tax will incentivize manufacturers to reduce sugar content, ultimately leading to lower consumption. The debate centers on whether sugary drinks warrant...

by Prague Morning Apr 29, 2024

Czechia Pushing to Enforce Restricted Movement for Russian Diplomats in EU

Czechia will again propose restricting the movement of Russian diplomats in the Schengen area, Czech Foreign Minister Jan Lipavský (Pirates, Greens) said in response to the arrest of two Russian agents in Germany on suspicion of espionage and planning attacks. Last week, German federal prosecutors arrested two suspected Russian spies in Bavaria on suspicion of espionage and planning attacks on military targets to undermine support for Ukraine. German diplomacy suspects Russia is recruiting agents to carry out attacks on German soil. “Russian intelligence threat in Europe is a reality,” Lipavský wrote on X on Saturday. Responding to Germany summoning the Russian ambassador and telling him that Germany would not allow Russia to bring its terror to the country, Lipavský expressed full support for the German response and said he wanted to raise the issue of Russian agents at the EU Foreign Affairs Council (FAC) in Luxembourg on Monday. “We must develop new instruments to tackle the Russian spy threat. On Monday at FAC, I will reiterate my proposals to curb Russian spies moving across Schengen. It could be achieved rapidly,” said Lipavský, whose country also has extensive experience with Russian agents who allegedly caused the 2014 ammunition warehouses blast on...

by Prague Morning Apr 23, 2024

Czech Groceries Up in April, Except for Eggs and Sugar

The Czech Statistical Office (CZSO) reported that most staple foods monitored in April increased in price compared to March. The price of apples climbed the most, rising 9.07% to 37.28 crowns per kilogram. Plain wheat flour also saw a significant increase of 7.04%, reaching 21.14 crowns per kilogram. Year-on-year data from the CZSO shows some items even became more expensive. For instance, potatoes, which cost 21.98 crowns per kilogram in April 2023, rose to 27.42 crowns this year, a hike of 24.75%. Out of the 13 items tracked by the CZSO, nine saw price increases in April compared to March. A cup of plain yogurt went up by exactly 3% to 10.66 crowns, while a kilogram of frozen edamame beans reached 180.95 crowns. Roast pork increased by 3.22% to 180.42 crowns per kilogram. Small price bumps of 1-2% were also seen for potatoes, light bottled beer, sugar, and butter. Interestingly, while edam cheese, yogurt, flour, and sugar were more expensive compared to March, their prices actually decreased year-on-year. On the other hand, eggs became cheaper month-on-month in April, dropping around 5% to 43.62 crowns per dozen. Their price also decreased significantly year-on-year, by more than a quarter. Sugar prices saw...

by Prague Morning Apr 23, 2024

Biden Calls Czechia “Great Ally” During White House Meeting with PM Fiala

President Joe Biden urged the U.S. House to immediately take up Senate-passed supplemental funding for Ukraine and Israel on Monday as he hosted Czech Prime Minister Petr Fiala in the Oval Office. The visit came as Biden aimed to highlight the efforts other nations are making to support Ukraine. It followed the Czech government’s announcement that it is sending 1 million rounds of artillery ammunition to Ukraine, which Kyiv says is badly needed on the battlefield against Russia’s invasion. “As the Czech Republic remembers, Russia won’t stop at Ukraine,” Biden said. He appealed to Congress to pass the supplemental funding so the U.S. could do its part to help Ukraine. “They have to do it now,” Biden said. Fiala praised the U.S. president for his leadership in support of Ukraine, adding, “We are also doing our best.” He said, “In 1968 I saw Russian tanks in the streets of my town, and I don’t want to see this again.” Biden called the Czech Republican a “great ally” in NATO, as Fiala said his country’s decision to purchase F-35 fighter jets from the U.S. will “make our cooperation and security much stronger.” He also recalled the role of the United States...

by Prague Morning Apr 16, 2024

Czech Inflation Stagnated at 2% in March

Inflation in Czechia remained at 2% in March, the same year-on-year growth as in February, which is the lowest inflation rate since December 2018. It increased by 0.1% month on month, driven by higher prices in the transportation sector, including the government raising those for motorway vignettes. As of March 1, the price of annual motorway vignettes was raised after ten years from CZK1,500 to CZK2,300 to reflect inflation development and will be indexed from now onwards. The change was approved last year as part of austerity measures aimed at tackling the budget deficit. Despite the y/y stagnation, “the price development in individual divisions of the consumer basket was different,” commented Pavla Sediva of the Czech Statistical Office (CZSO). “Food and non-alcoholic beverages was the only division where prices were lower, approximately by 6% y/y,” she added. Prices of fuels and lubricants for personal transport equipment increased by 4.8% y/y, and the price of highway vignettes increased by 53.3%. In the food and non-alcoholic beverages sector prices of flour decreased by 27.8% y/y, prices of pork were down by 5.7%, yoghurts by 7.9%, fruit by 2.9% and vegetables by 4.9%. CZSO highlighted that “the biggest influence on the growth of...

by Prague Morning Apr 11, 2024

Czech Lawmakers Approve Tougher Rape Law

The Czech parliament on Wednesday voted to toughen legislation on rape, with stricter definitions that classify all sexual abuse of children under 12 as rape or assault. The amendment, which has to be passed by the Senate and signed by the president to take effect, was approved by lawmakers across the chamber. Following the “no means no” principle, the bill changes the definition of rape from forced intercourse to intercourse without consent. It says disapproval can be expressed by a gesture or crying, and also protects victims unable to protest because of an illness, inebriation, sleep, or bondage. The bill also introduces the crime of sexual assault for acts that do not involve intercourse. In defending the new rules, lawmakers noted that 16 European countries had also recently changed the legal definition of rape. Some use the “yes means yes” concept, which insists on a declaration of consent, while others employ “no means no” like the Czech Republic. Other European countries including France, Italy, and Poland use the traditional definition of rape based on violence or threat. Would you like us to write about your business? Find out more

by Prague Morning Apr 10, 2024

Czech Government Invests Six Billion Euros in New Nuclear Reactors

The Czech government is investing in nuclear energy as a means to decarbonization. The Czech government wants the new units to gradually go into service between 2029 and 2040, and fully phase out from Coal and Lignite by 2033. The goal is for oil and gas to be phased out by 2050, according to the ambitious National Energy and Climate Plan. The Czech Republic is traditionally a carbon energy exporter, yet its government is seemingly ready to cut ties. In a speech made in March at a nuclear energy summit in Brussels, Czech Prime Minister Petr Fiala said, “From the Czech perspective, nuclear is a cost-effective way to decarbonization. It brings grid stability and security of supply. It is the only way to reach our energy independence.” According to an exclusive IPSOS and Euronews poll, the Czech people are the least concerned EU electors, after the Poles, by climate change. 34% agree that climate is a priority, whilst 21% do not. Industry and Trade Minister Jozef Sikela said an assessment of the bids should be completed by the end of May. The Czech Republic already relies on six nuclear reactors to generate more than a third of its electricity. Besides...

by Prague Morning Apr 09, 2024

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