Politics & Economics

What Will Remain of the Zeman Era?

After two five-year mandates, Czech President Miloš Zeman’s term in office ends at midnight on Wednesday, March 8. Zeman, who was first a member of the Social Democratic Party but later switched to the centre-left Party of Civic Rights, was one of the defining figures in Prague after the Velvet Revolution of 1989, along with his predecessors Václav Havel and Václav Klaus. But in the commentaries, there is not much mourning over his departure. He did more harm than good “His dark side far outweighed his light one. We joined Nato when Zeman was prime minister, but after that he never stopped torpedoing our Western alliances. Zeman conceived his entire presidency as representing the interests of China and Russia. … When our first post-revolutionary president died, parliament paid him tribute by saying: ‘Václav Havel did a great service to freedom and democracy.’ With regard to this outgoing president it should say: ‘Miloš Zeman endangered freedom and democracy’,” wrote Erik Tabery, editor-in-chief of Respekt. A striking but controversial personality Deník is also ambivalent about the outgoing president: “Miloš Zeman is a conspicuous personality of the post-revolutionary era. For many years he held the pen with which history was written. He did...

by Prague Morning Mar 07, 2023

Czech Republic Expected to Hike Gambling Tax

The Ministry of Finance has signaled that it intends to bring in more revenue from gambling. The Ministry of Finance seems intent on seeking more revenue from the gambling sector, having told media that it will implement tax changes in the sector. Finance Minister Zbyněk Stanjura is in the process of defining measures to deliver savings of Kč 70bn in the country’s budget. The Czech gambling sector is currently estimated to generate Kč 9bn per year in taxes, but Stanjura aims to increase that contribution to Kč 1bn as the government seeks ways to keep the deficit at Kč 295bn. Back in 2020, the government went ahead with the introduction of a tiered tax on gross gaming revenue, which ranges from 23-to-35 per cent. A head of that move, which applies to allow licensed products, from bingo to sports betting, drove international operators such as William Hill and GVC Holdings (now Entain) to leave the market. The exit of foreign operators left the Czech gambling sector the domain of local operators of Fortuna Entertainment and TipSport in sports betting and Sazka (Allwyn) for lottery. xosotin chelseathông tin chuyển nhượngcâu lạc bộ bóng đá arsenalbóng đá atalantabundesligacầu thủ haalandUEFAevertonfutebol ao vivofutemaxmulticanaisonbetbóng đá world cupbóng đá inter milantin juventusbenzemala ligaclb...

by Prague Morning Mar 02, 2023

PRE Announces Reduction in Electricity and Gas Prices

The Prague-based energy company, PRE, has announced that new electricity and gas tariffs will be available to customers from March 15, which will be lower than the government’s imposed caps and substantially cheaper than the current tariffs. The company disclosed this information in a press release on Thursday. The new tariffs, named PROUD FIX and PLYN FIX, will be accessible to both new and existing customers, with a prerequisite that the prices will remain fixed until the end of 2024. The cost of electricity at the most popular distribution tariff, D02d, will be 4.74 CZK per kWh, excluding VAT. Meanwhile, customers who use electricity for heating and water heating purposes will pay 4.64 CZK per kWh for the high tariff and 4.44 CZK for the low tariff. PRE gas will be offered at 2.08 CZK per kWh, which is 420 CZK below the government-imposed caps when measured in one megawatt. “The new offer is aimed at conservative customers who prefer to have a guaranteed price for a specific duration. It also targets individuals who are apprehensive about the possibility of any future electricity price hikes,” the company stated. All major suppliers – E.ON, Innogy, Pražská plynárenská, MND and ČEZ –...

by Prague Morning Mar 02, 2023

Egg Prices Skyrocketed, Potatoes Have Also Become More Expensive

Producer prices in the Czech Republic continue to rise by tens of percent. According to data released by the Czech Statistical Office, they were up 25.5 percent in agriculture, 19 percent in industry, and 11.4 percent in construction. The prices of market services for businesses also rose year-on-year by 6.3 percent. However, the year-on-year price growth slowed down in all these groups compared to December. Compared to last January, potato prices rose by 43.1 percent, and egg prices rose by 82.7 percent. For example, in industry, the prices of electricity, gas, steam, and air-conditioned air rose by 35.7 percent, and those of coal, lignite, and lignite by 82 percent. In the construction sector, prices of materials and products consumed rose by 14.3 percent year-on-year in January. In services, employment-related prices rose by 27.6 percent, programming prices rose by 9.1 percent, warehousing and transportation support services rose by 5.5 percent, and advertising and market research services rose by 6.4 percent. “The January manufacturing price results do not look favorable as they confirm the continuation of the inflationary wave in much of the economy. While we can be pleased with the lower year-on-year figures, these are attributable to the calculation from a...

by Prague Morning Mar 01, 2023

Czechs Richer Than Japanese? GDP Averages Distort Reality

International comparisons are popular in the Czech Republic, whether it’s measuring per capita beer consumption or gross domestic product. Well-known economists and politicians also engage in this sport. Two years ago, former PM Andrej Babiš boasted that the Czech Republic had overtaken Spain in living standards, claiming, “today we are like Italy.” In terms of GDP per capita in purchasing power parity, this claim would have been true two years ago and still holds some weight today. According to the International Monetary Fund’s 2022 data, the Czech Republic ranks 35th with $48,919, Spain is in 37th place with $46,551, and Italy is in 31st place with $51,062. Japan, on the other hand, is slightly behind the Czech Republic in 36th place with $48,813. However, GDP alone doesn’t accurately measure living standards. The Human Development Index (HDI) is a more comprehensive indicator, measuring human health, educational attainment, and material living standards. The HDI ranges from zero for the least developed countries to one for the most developed. According to the United Nations’ HDI, the Czech Republic (0.889) still lags behind Italy (0.895), Spain (0.905), Japan (0.925), and even Slovenia (0.918). The Czech Republic’s score is similar to Estonia (0.890) and Greece...

by Prague Morning Mar 01, 2023

Million Moments for Democracy Celebrates its Fifth Anniversary

On February 25, 2018, Milion chvilek pro demokracii (lit. ‘A Million Moments for Democracy’) was conceived as a petition for Andrej Babiš’ resignation from parliament, arguing that someone under criminal investigation should not be allowed to hold the position of Prime Minister. Although they fell short of their goal for one million signatures, the organization has continued to maintain a strong civic presence within the Czech republic, urging for greater accountability in government and greater civic participation. They are predominantly funded through private donations and fundraisers. We met Hana Strašáková, spokesperson for Milion chvilek pro demokracii. “Over the five years of our activity, we have gathered know-how on how to talk to those who do not vote for democratic political parties and who do not agree with Million of Moments. … Our goal will undoubtedly be to unite all the people who care about the future of our country. And that will undoubtedly require a greater focus on non-urban citizens.” Earlier this year, Petr Pavel was elected President of the Czech Republic after two rounds of voting,receiving 35.40% of votes in the first round and 58.31% in the second. Prior to being elected President, Petr Pavel served as the Chairman...

by Richard Golbeck Feb 26, 2023

Czech Housing Market “Froze” in H2 2022, Dropped by Half in Full-Year

Czech housing transactions dropped by 50% last year to a 10-year low, as soaring inflation, high-interest rates and the war in Ukraine scared buyers, data from the Czech Banking Association (CBA) and Dataligence showed on Wednesday. Dataligence CEO Milan Rocek said demand culminated in late 2021, with the market short of apartments on offer, but the start of Russia’s invasion of Ukraine in February 2022 brought an abrupt change. “Higher energy prices, a sharp rise in inflation, that all changed people’s mood,” he said. “This was multiplied by the growth of mortgage interest rates. The real estate market practically froze in the second half because of that.” The number of new mortgages fell to a 20-year low last year while the volume was the lowest in a decade, the survey said. New mortgage volumes for the full year, excluding refinancing, dropped by 57%, CBA had reported earlier, as official interest rates soared to 7% last year from 0.25% the year before. The CBA has reported an 82% year-on-year drop in new mortgages in December alone. Despite the drop in volumes, prices gained as supply continued to be tight. Prices of older apartments reached a peak around mid-2022 but still showed...

by Prague Morning Feb 22, 2023

Joe Biden to Meet with Czech PM and Other NATO Representatives

Fresh from his visit to Ukraine, US President Joe Biden will rally NATO’s eastern allies in Poland on Wednesday (22 February), a group of countries in which most – but not all – are strong supporters of military aid to Ukraine. Biden used the trip to rally support for Ukraine as the war enters its second year, with no end in sight, and it came on the same day as a speech by Russian President Vladimir Putin in which he accused the West of seeking Russia’s destruction and dangled the threat of nuclear war. Before returning to Washington on Wednesday, Biden will meet leaders of the Bucharest Nine, the countries on NATO’s eastern flank, to reaffirm support for their security. The ‘Bucharest Nine’ (B9) was founded on 4 November 2015 in Bucharest, at the initiative of the President of Romania Klaus Iohannis and the President of Poland Andrzej Duda during a bilateral meeting between them. It gathers the Presidents of Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Montenegro, North Macedonia, Poland, Romania and Slovakia. All joined the Western military alliance after being dominated by Moscow during the Cold War, and most, with the notable exceptions of Hungary and Bulgaria, are now among...

by Prague Morning Feb 22, 2023

Petr Pavel Warns Against Ukrainian Victory That Would Result in Collapse of Russia

Czech President-elect Petr Pavel has irritated the Ukrainian government by calling for realism in the country’s ongoing conflict with Russia and warning against pushing for a result that could see the collapse of Russia and lead to greater problems for the region. Pavel offered his thoughts on the war during the Munich Security Conference on Saturday. He said an attempt to liberate some parts of Ukraine from occupied Russian forces would inevitably lead to “unbearable loss of life” and Ukraine and its allies should “prepare for the worst.” “We need to be careful about pushing Ukraine to a certain result. Maybe at some point, Ukraine will change its vision,” the former NATO general added. Pavel, who will succeed outgoing Czech President Miloš Zeman on March 9, argued that a resounding Ukrainian victory that resulted in the collapse of the Russian Federation could be catastrophic for the region, and the West should avoid advocating for such a result. “It is possible that this will lead to the collapse of Russia,” Pavel said, referring to a Ukrainian victory that sees the country liberate and retain the entirety of its territory. “If Russia collapses, then we may have more problems, we have no...

by Prague Morning Feb 20, 2023

Czech Incoming President Says No ‘Cap’ on Kyiv Weapons Shipments

The Czech Republic’s incoming president said the only limit to weapons deliveries to Ukraine should be nuclear arms, and he expressed confidence that Ukrainian forces can defeat Russia. Petr Pavel, a retired NATO general who takes office in March, also said President Vladimir Putin’s government isn’t the only one to possess nuclear weapons. “I believe that we shouldn’t put any cap on equipment,” Pavel told Bloomberg Television in an interview in Prague Friday. “The only exception is nuclear weapons and direct involvement of NATO in the conflict.” Pavel secured a convincing victory over billionaire former Prime Minister Andrej Babis on Saturday after a campaign that pledged to return the Czech Republic’s highest office to the European mainstream. Pavel has vocally denounced Russia’s invasion of Ukraine and called for more arms deliveries to Kyiv. “Ukraine can defeat Russia on Ukrainian soil,” Pavel said. “That means to push Russian forces out of Ukraine and restore full territorial integrity and full sovereignty of Ukraine.” The incoming president also warned that NATO members’ possession of nuclear weapons should act as a deterrent to any Russian considerations of atomic arms. “We have nuclear capability as well,” Pavel said. “We don’t want to use it at...

by Prague Morning Feb 03, 2023

Pavel to BBC: Ukraine Deserves to Join NATO As Soon As War Ends

“Ukraine deserves to join NATO as soon as Russia’s war on the country ends,” said the newly elected Czech President Petr Pavel to BBC. The retired NATO general added that Ukraine should be “morally and practically ready” to join the alliance once the conflict is over. “Ukraine deserves to be part of the community of democratic countries,” Pavel said in his first interview with the foreign press. Regarding Western military support to Ukraine, Pavel said that there ought to be almost no limits on what countries could send to the Kyiv government. “We have no alternative,” said the president-elect. “If they lose – we all lose,” added Pavel, who said the handover of fighter jets was not taboo. But he fears the delivery of the warplanes could be too slow. “I am proud of my country being one of the first to provide Ukraine with significant military help,” he told the BBC. The Czech Republic was the first Western country to send tanks and infantry fighting vehicles – Soviet-designed T72s and BMP1s – to Kyiv, part of a series of deliveries of heavy weapons that reportedly began as early as March 2022. “Peace depends entirely on Russia and we would...

by Prague Morning Feb 01, 2023

Czech Economy Slips into Technical Recession

The Czech economy contracted further in the fourth quarter, the statistics office said on Tuesday, pushing the central European country into a technical recession for the first time since 2020 as high inflation hit households at the end of the year. With other central European economies fighting off recession risks, the Czech data on Tuesday was the first in the region to show two quarterly contractions in a row. Czech gross domestic product (GDP) decreased by 0.3% quarter-on-quarter, following a 0.2% drop in the third quarter, but was better than a Reuters poll forecast of a 0.6% fall. It was the first drop in consecutive quarters since the coronavirus pandemic hit in the first half of 2020. On a year-on-year basis, the economy rose 0.4%, also better than expected, but slowing from a 1.5% increase in the previous quarter. Banka Creditas chief economist Petr Dufek said the fourth-quarter figure was decent given the fall in purchasing power. “Weakening domestic demand was compensated by better foreign trade and investments,” he said, adding the economy is expected to remain weak at the start of 2023. For the full year, the Czech economy rose 2.5%, which follows Poland on Monday reporting a 4.9%...

by Prague Morning Jan 31, 2023

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