The Czech Republic has already provided Ukraine with 45 tonnes of humanitarian aid for the energy sector. This is said in a statement published on the website of the Ministry of Energy of Ukraine. Ukrainian Deputy Minister of Energy Yaroslav Demchenkov briefed the Czech representatives on the current situation in the Ukrainian energy sector, as well as the progress of repair and restoration works in preparation for the next heating season. “Ukraine has already received 12 cargoes of humanitarian aid from the Czech Republic, their total weight is about 45 tonnes, including current transformers, voltage transformers, passenger cars, and other equipment and supplies necessary for restoration work at the facilities that were subjected to Russian attacks,” the report says. Special attention was paid to deepening cooperation in the renewable and nuclear energy sectors. The Czech side confirmed its interest in implementing projects related to the restoration and development of the Ukrainian energy sector, including in the field of wind and solar energy. The meeting participants also discussed the development of a memorandum between the two countries, which would be a signal for business and private capital to participate in relevant joint projects. In addition, the meeting participants confirmed their mutual...
Consumer prices increased by 8.5% year-on-year and by 0.2% month-on-month in August, the Czech Statistical Office (CZSO) reported. Czechia’s inflation remained the 9th highest in Europe, and local analysts expect the easing of inflation to continue only at a slower pace, prompting the Czech National Bank to take no action in its dovish interest rates policy at its upcoming September board meeting. August y-o-y inflation is 0.3 percentage points down on July, when inflation eased to 8.8% from 9.7% in June. CZSO highlighted that the m-o-m development came mainly due to higher prices in the transport section. “Fuel prices had the most significant influence on the development of consumer prices in August. They have already grown for three consecutive months,” Pavla Sediva of CZSO commented. Sediva added that “diesel was sold at petrol stations for around CZK37.40 per litre on average,” which is the highest value since January. Petrol Natural 95 price of CZK39.50 per litre is the highest since November of last year. In m-o-m terms, fuel prices and lubricants from personal transport equipment grew by 7.7%. Food and non-alcoholic beverages decrease in prices by 6.7% also contributed significantly to the m-o-m development, with potatoes down by 13.3%, eggs by 6.6%, and...
The Czech Republic is ready to help Ukraine hold parliamentary and presidential elections in 2024 after Ukrainian President Volodymyr Zelenskyy indicated that they would need help from Western allies, said Foreign Ministry spokesman Daniel Drake. “The organization of elections in the conditions of Russia’s war aggression against Ukraine is governed by Ukrainian law and, however complicated it may be, we believe that it will be possible to organize them next year,” added Drake. “The Czech Republic is ready to support Ukraine in this regard, but the exact form of this assistance can only be discussed on the basis of a specific request from the Ukrainian side,” Drake said, adding that the country has not yet received any specific requests. Zelenskyy recently said that voting could take place during wartime, but Ukraine needs to change laws and get partners from the EU and NATO on board when it comes to sharing election costs. Czech Interior Minister Vít Rakušan confirmed the country’s readiness to provide help, adding that the requirements put forth by Ukraine will shape the specifics of Czech assistance. However, EU Commission spokesman Peter Stano said that Ukraine has not yet contacted the institution on the matter. “In general, the...
The media business controlled by Czech billionaire and opposition leader Andrej Babis is being sold to investor Karel Prazak, the two parties said on Friday, ahead of new legislation that bans politicians from owning some news and TV assets. Agrofert, controlled by Babis through trust funds, has agreed to sell its media businesses MAFRA and LONDA and a chemicals firm to Czech-based Prazak, the two sides said in a statement but did not disclose financial details. MAFRA and LONDA are major players in the Czech media with assets including national newspapers Mlada fronta Dnes and Lidove Noviny, as well as one of the largest radio stations, significant online businesses and print works. Opponents have frequently criticised Babis, prime minister from 2017-2021 and still leader of his ANO party, for using his media assets to his political advantage, which he has denied. Babis put Agrofert, a sprawling empire of media, chemicals, farming and food processing firms, into trust funds in 2017 to comply with conflict of interest rules at the time. Those rules have been further tightened under legislation approved by the current ruling centre-right majority and due to come into effect next January. The new law bans members of parliament...
E.ON energy company is set to provide gas discounts to all its existing customers without a fixed price starting from September. This move will impact around 140,000 clients. Their prices will decrease by 16 percent compared to the current rates and will drop by up to 25 percent in comparison to the government’s imposed price cap. Similar trends are observed with other energy suppliers in the Czech Republic, as they gradually reduce their energy prices. In response to the price hikes in wholesale exchanges, the Czech government established price limits for this year at CZK 5,000 per megawatt-hour (MWh) for electricity excluding VAT and CZK 2,500 per MWh for gas. While suppliers initially offered these prices at the beginning of the year, they started introducing new, more profitable products throughout the year as energy costs on the exchange decreased. For E.ON’s customers without fixed plans, starting September, the gas price will be CZK 2,321 per megawatt-hour (MWh) including VAT. This translates to savings of CZK 436 per MWh compared to current rates and a significant reduction of CZK 704 per MWh compared to the ongoing price caps. Radek Fišer, Head of Household Energy Sales and Proxy of E.ON Energie, noted...
Czechia fully supports the 10-point peace plan presented by Ukrainian President Volodymyr Zelenskyy and is ready to help with its implementation, said Czech Foreign Minister Jan Lipavský. Lipavský spoke about the Czech role in the plan’s enforcement on the occasion of Monday’s meeting of the Czech head of embassies. On the same day, he also met with his Ukrainian counterpart Dmytro Kuleba in Prague. “We stand fully behind President Zelenskyy’s peace plan. It remains the only way out of the biggest war on European soil since the end of the Second World War,” Lipavský said. Zelenskyy outlined a 10-point peace plan last autumn. The plan envisages – among others – nuclear safety, protection food and energy security, restoration of Ukraine’s territorial integrity and total withdrawal of Russian troops. Czechia will be actively involved particularly in the first point – nuclear and radiation safety. “Together with France, we have been selected as co-chairs of the first group on nuclear and radiation safety. This is an achievement, it is an appreciation of our role. It is also a responsibility that we must live up to,” Lipavský said. According to Lipavský, the fact that Czechia will co-chair the nuclear safety group is a...
The Czech Republic will support Ukraine on the path towards achieving peace which is possible only on Ukrainian terms and principles of international law. “A peaceful solution can be achieved only with the participation of Ukraine and according to its rules. The Czech Republic supports Ukraine’s 10-point peace plan. We also offered help in filling it,” Minister of Foreign Affairs of the Czech Republic Jan Lipavský said at a joint press conference with his Ukrainian counterpart Dmytro Kuleba in Prague. Lipavský assured his colleague that the Czech Republic would continue to support and provide assistance to Ukraine until its victory in the war unleashed by Russia. He emphasized that it is impossible to make any concessions, if this would mean a violation of international law, it is impossible to exchange peace for any part of the sovereign territory of Ukraine. “Our only defense against Russian imperialism is active support for Ukraine, support for its accession to NATO and the EU,” said the head of the Czech diplomacy, adding that Ukraine must fulfill the necessary conditions and carry out the necessary reforms to join the EU. The ministers discussed the situation in Ukraine, the possibilities of ending the war, and coordinated...
The Czech Republic is facing the biggest turning point in its modern history as it has exhausted all previous growth drivers, lost its competitive advantages and fallen into the so-called middle-income trap, a new study has found. The study on Czech competitiveness was conducted by the Czech Chamber of Commerce. According to its findings, the country could face long-term economic stagnation and a slowdown in wage growth and living standards. Further convergence with the level of more advanced European countries will be complicated given the current structure of the economy, the study also found. “If the economy continues to converge and reach the level of Western countries, it will have to escape the middle-income trap, i.e. move towards higher value-added production. In such a situation, it is possible to remain competitive even with relatively more expensive labour,” said Chamber of Commerce President Zdeněk Zajíček. However, according to experts, the problem with the Czech economy today is that it generates only low-added value. Compared to other EU countries, the value added generated is one of the lowest in the EU, with the Czech Republic ranking 24th out of 27 countries. The economy has not yet escaped the middle-income trap, failing to...
Israeli Prime Minister Benjamin Netanyahu is set to visit the Czech Republic in October for a collaborative government meeting. The meeting will mark a renewed effort in discussions between the two nations. The news was confirmed by Seznam Zprávy, following a briefing from Veronika Kuchyňová Šmigolová, the incoming Czech ambassador to Israel. Netanyahu will visit Prague on October 9th. However, any unforeseen global or domestic circumstances could potentially lead to a change in this schedule. Netanyahu is currently grappling with pressure concerning contentious judicial reform and has also faced scrutiny regarding his selection of coalition partners and ministers. Israeli Finance Minister Bezalel Smotrich and Interior Minister Itamar Ben Gvir, both representing ultra-nationalist parties, will not take part to the trip. “The finance minister will not attend the meeting as there are no pertinent topics for discussion with him,” said the incoming Czech ambassador to Israel, Veronika Kuchyňová Šmigolová. She further highlighted the diverse range of subjects on the agenda, encompassing defense, science, research, innovation, education, and transport. Czechia is probably the most enthusiastic supporter of Israel in the EU and have long tried to protect Israel in votes at the UN. For example, when former US president Donald Trump moved...
The Czech government approved on Wednesday a bill allowing the taxation of large multinational companies which tend to book their profits in countries with a lower tax burden. The bill affects firms whose annual revenues exceeded 750 million euros in at least two of the past four years. The aim is for multinationals to pay a profit tax of at least 15%. “We will join countries that refuse to allow corporate profits to be diverted into tax havens,” Finance Minister Zbynek Stanjura said during a televised press conference. The bill has to be approved by the parliament and signed by the president to become a law. It is based on a European Union directive approved last December as a part of an OECD/G20 initiative to face the digitalization of the economy. The Finance Ministry expects the new tax raise the annual state budget revenues by 4-6 billion crowns. The opposition ANO party has said it will support the bill, but is against a fast-track procedure, saying it wants time to table proposed amendments to the bill.
The financial situation of Czechs is getting worse. One in four has already experienced a situation where they lacked money for everyday life. However, Czechs do not lack financial self-confidence and they value their knowledge of the world of money. The number of those who have experienced financial difficulties has risen by more than six percentage points year-on-year. While last year 54 per cent of people dealt with financial discomfort, today it is almost 60 per cent. This information was gathered from a global survey of 500 participants, ages 18 to 75, that Kantar carried out on behalf of the International Personal Finance group. The increase is more noticeable when there aren’t enough finances to cover living expenses, when income isn’t enough, or when loans are denied. At least once, one-fourth of Czechs have struggled with having insufficient money to support their family. Comparing this to last year’s one-fifth figure shows a huge increase. The proportion of people in this age group who experience such situations has increased from 20% to 34% in only one year. In addition, a higher number of people have reported having their loan applications rejected by banks (up 30%) or other lenders (up 85%) than...
While many nations are emerging from the economic crisis, certain European countries are witnessing a renewed deceleration in their economies. The Czech Republic, according to recent projections, finds itself in a precarious position. Here, purchasing power and consequently, household spending are declining, following Hungary’s lead. The International Monetary Fund (IMF) unveiled its summer forecast in late July, bringing optimism to nineteen of the world’s twenty largest economies, SeznamSpravy reports. Notably, the United Kingdom’s GDP is expected to grow by 0.4 percent beyond earlier projections, attributed to increased consumption, investments, declining energy costs, and reduced Brexit impact. In contrast, Germany anticipates a 0.3 percent economic contraction, marking its third consecutive shortfall. The country’s economic struggles, exacerbated by the pandemic’s arrival in 2020 and the repercussions of Russian aggression in 2022, have raised concerns of a lingering downturn. This grim outlook has prompted headlines like “situation turns toxic” in the automotive industry and warnings of “dark clouds gathering over the construction industry.” While Germany’s challenges capture attention, it is not alone in its difficulties. Sweden, Hungary, and the Czech Republic have been grappling with inflationary pressures and distinct catalysts behind their struggles. Sweden’s economic woes stem from a burst property bubble, which eroded...
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