Politics & Economics

Czech National Debt Soars Above 3 Trillion CZK for First Time in its History

The Czech national debt increased to a record of more than 3 trillion crowns (€125 billion) in the first half of the year, crossing the 3 trillion mark for the first time ever. Since the beginning of the year, debt has increased by 149.6 billion crowns. The debt ratio was 42.8 percent of GDP in the first half of the year, 0.1 percentage points higher than at the end of last year, according to the Czech Finance Ministry. The debt translates to each Czech citizen owing 280,574 crowns. The main reason for the increase in state debt was the sale of state bonds and treasury bills in order to continuously cover the state budget deficit, the ministry said in its quarterly report on state debt management. The budget deficit was 215.4 billion crowns in the first half of the year. Most of the state debt is covered by medium- and long-term government bonds issued on the domestic market. Their value in the first half of the year was 2.6 trillion crowns. Other important sources of debt coverage are treasury bills with a maturity of less than one year and received loans and credits. At the same time, the National Budget...

by Prague Morning Jul 22, 2023

Caspian Energy Club Czechia Presented a Report on its First Half-Year Activity

Caspian Energy Club Czechia, the official representative of Caspian Energy Club in Czechia, has submitted a report on the work done for the first half of 2023 to the Management Board of the Club. This was stated by Zaur Gadirov, Chairman of the Board of Caspian Energy Club Czechia. According to the presented report, in the first half of the year, CEO Lunch Prague, CEO Breakfast Prague, CEO MeetUp Prague (Real Estate in Czechia) etc. and a number of successful events were organized. The 13th International Caspian Energy Investment Forum Prague – 2023, jointly organized by the Caspian Energy Club and the Caspian Energy Club Czechia, was held with the participation of the former Prime Minister of Czechia Jan Fischer and many government officials and was one of the biggest events of March 2023. The main topics of the event were new opportunities and perspectives, “green” energy, European energy security, technological progress and digitalization, as well as the investment potential of Czechia. This event, which is planned to be held every year, is designed to attract investments and diversify trade with different countries. According to Zaur Gadirov, Caspian Energy Club Czechia plans to continue its agile activities. “By the end...

by Prague Morning Jul 20, 2023

Parliament Approves Treaty Making it Easier to Deploy US Troops on Czech Territory

The Czech Parliament gave its expected approval Wednesday to a defense treaty signed with the United States in May that would deepen military cooperation and make it easier to deploy U.S. troops on Czech territory. The lower house of Parliament voted 115-18 in favor of the Defense Cooperation Agreement. The treaty, endorsed by the Czech Senate last week, goes next to President Petr Pavel for his expected approval. The document would set a legal framework for possible deployment of U.S. troops in the country at a time of Russian aggression against Ukraine. “We can´t do without a strong alliance with other democratic countries in this situation,” Czech Defense Minister Cernochova told lawmakers in the lower house. She said, “the deal is absolutely in our national interest.” Cernochova signed the treaty together with U.S. Defense Secretary Lloyd Austin in Washington D.C. on May 23. The U.S. has such agreements with 24 other NATO members, including Poland, Slovakia, Hungary, Lithuania, Latvia, Estonia, Romania, and Bulgaria that form the eastern flank of the alliance. The lawmakers of the five-party ruling coalition were joined by most of their colleagues from the opposition ANO (YES) movement led by former populist Prime Minister Andrej Babis in...

by Prague Morning Jul 20, 2023

Czech Delegation of 30 Companies Embarks on Mission to Rebuild Ukraine

In a bid to provide assistance and support to Ukraine, the Czech Republic has sent a delegation of 30 companies to participate in the reconstruction efforts. Led by Tomáš Kopečný, the government commissioner for the reconstruction of Ukraine, the delegation aims to facilitate international investments and establish business partnerships between Czech companies and their Ukrainian counterparts. The visit of Ukrainian President Zelensky to Prague was seen as a significant event, with discussions focusing on various aspects, including security guarantees, arms supplies, and opportunities for Czech companies to contribute to Ukraine’s energy sector and railway infrastructure. Concrete projects and joint production ventures were also on the agenda during meetings with the President and the Prime Minister. Regarding the upcoming mission to Ukraine, Kopečný mentioned that the exact schedule cannot be disclosed for security reasons. However, the delegation plans to visit four major Ukrainian cities, including Kiev, during the week-long mission. The primary objective is to foster direct contacts between Czech companies and Ukrainian partners, both in the business and administrative spheres. Meetings with national and regional chambers of commerce have been scheduled in each city to facilitate networking and collaboration. The participating companies represent three key sectors: energy, healthcare, and transport....

by Prague Morning Jul 17, 2023

Apartment Prices In the Czech Republic Fell by 1.2 %

Deloitte, a financial consulting firm, has reported a 1.2% decrease in apartment prices during the first quarter of this year compared to the previous quarter. The average price per square meter stood at 92,200 CZK. This decline can be attributed to reduced demand resulting from inflation, higher mortgage rates, and increased real estate costs due to high energy expenses and ongoing construction projects. Despite the decrease, apartment prices remain 70% higher than pre-pandemic levels. Among the regions analyzed, the most significant drop in average apartment prices was observed in Liberec, where prices decreased by 15.6% compared to the last quarter of 2022. Ostrava and Pardubice experienced price reductions of 12.6% and 11.2%, respectively. Conversely, Usti nad Labem saw an average price increase of 4.4%, while Zlin observed a rise of nearly 5%. In Prague, overall prices remained relatively stable, with a slight increase of 0.2%. However, price fluctuations varied across different areas of the capital. Prague 8 witnessed a 5.5% increase in prices, followed by a 3.8% increase in Prague 3, and a 2.8% increase in Prague 9. On the other hand, the city center experienced significant price declines, with a substantial drop of 18% in Prague 1 and 12%...

by Prague Morning Jul 16, 2023

Czechs’ Confidence in the EU Wanes, Reveals Recent Survey

According to a new survey conducted by the Center for Public Opinion Research (CVVM), Czech citizens’ trust in various international organizations has experienced a decline. The poll revealed a drop in confidence in the European Union (EU) from 58% to 46% compared to the previous year, alongside significant decreases in trust for the North Atlantic Treaty Organization (NATO) and the United Nations (UN), down to 56% and 52% respectively. The survey, carried out by CVVM between late March and late May of this year, highlighted the interconnected nature of trust in these organizations. Individuals who expressed trust in one of these bodies were more likely to trust the other two as well, although the link between trust in the EU and the UN appeared slightly weaker compared to the connection between NATO and the EU. This year’s survey revealed a prevailing sense of distrust in the EU, with half of the respondents expressing negative sentiments towards the organization. Another 4% of participants indicated that they were unsure. Additionally, 36% expressed mistrust in NATO, while 37% lacked trust in the UN. These figures represented an 11-percentage-point decrease from the previous year, which saw 67% of Czechs placing their trust in NATO...

by Prague Morning Jul 12, 2023

Czechia to Send Ukraine More Attack Helicopters, Ammunition

Prime Minister Petr Fiala tweeted on July 7 that Czechia would send Ukraine additional attack helicopters and “hundreds of thousands” rounds of large-caliber ammunition “in the coming months.” Czechia will also help Ukraine to train its pilots, including on F-16 fighter jets, said Fiala. The country will deliver flight simulators to enable Ukraine to conduct the training on its soil, not just in Western countries. The announcement comes a day after President Volodymyr Zelensky arrived in Prague to meet with Czech President Petr Pavel, PM Fiala, and other top officials. Their talks have reportedly focused on defense assistance to Ukraine, the unfolding situation at the Zaporizhzhia Nuclear Power Plant, the Ukrainian peace formula, and the upcoming NATO summit, among other topics. Before Czechia, Zelensky visited Bulgaria, and his next stop will be Istanbul, Turkey. Ahead of the Vilnius summit, Kyiv is actively seeking additional support for Ukraine’s NATO membership bid. Ukraine hopes to receive a “clear signal” from allies regarding its membership prospects at the event, set to take place on July 11-12. According to PM Fiala, Czechia has supplied Ukraine with 676 pieces of heavy equipment and over 4 million ammunition rounds since the beginning of Russia’s full-scale invasion. For 2023, Prague has reportedly committed...

by Prague Morning Jul 09, 2023

Czechia Witnessed Decrease in Consumer Price Inflation in June

The Czech Republic witnessed a decrease in consumer price inflation in June, marking a significant milestone as inflation fell below 10% for the first time since January 2022. According to analysts from ČTK, this decline can be attributed to a comparison with last year’s figures and the influence of a strong koruna, along with reduced demand. In May, inflation was recorded at 11.1%. The Czech Statistical Office (CZSO) is scheduled to release the inflation data for June later this week. Experts from Raiffeisenbank estimate that the annual inflation rate for June will be approximately 9.7%. They point out that falling fuel prices have played a significant role in the disinflationary process, as they have dropped by more than 20% compared to the previous year. This decline is primarily due to the high base effect from last year, when fuel prices reached record highs during the summer. The analysts also anticipate a decrease in regulated prices, influenced by lower electricity and gas prices in the market, as well as government regulations. However, food prices continue to contribute to sustained high inflation. Vít Hradil, Chief Economist at Cyrrus, suggests a possible slight increase in the food sector compared to May, and with...

by Prague Morning Jul 09, 2023

Ukrainian President Zelenskiy is in Prague for Talks With Senior Czech Politicians

Ukrainian President Volodymyr Zelenskiy made his way to Prague last night to engage in discussions with President Petr Pavel. During their meeting, Zelenskiy expressed his gratitude to Pavel for the Czech Republic’s assistance to Ukraine. Additionally, he highlighted the detrimental effects of Russian propaganda, which he believes is also impacting the Czech Republic. Zelenskiy commended the Czech Republic for its visible efforts in supporting the freedom of the Ukrainian people. He emphasized that it would be ideal for Ukraine to receive an invitation to join NATO, asserting that the current moment is opportune for unity, despite the challenges of aligning all alliance members on the same stance. He expressed his appreciation for the warm welcome in the Czech Republic, acknowledging their involvement in Ukraine’s defense, politics, and various other endeavors. He recognized the Czech Republic’s significance in terms of military aid, arms supplies, support for sanctions against Russia, and backing Ukraine’s accession to the EU and NATO. Furthermore, Zelenskiy lauded the Czech Republic’s acceptance of hundreds of thousands of refugees and shared his aspiration for a future where all people can feel secure and Ukrainians can return to their homeland. Regarding the upcoming NATO summit in Vilnius, he viewed an...

by Prague Morning Jul 07, 2023

Czech Authorities Investigate Russian Cultural Centre

Czech authorities are investigating activities of a Russian cultural centre operated by the sanctioned Moscow state agency, Rossotrudnichestvo, which is still operating in the Czech Republic, according to Czech Television. The Russian cultural centre, also known as the Russian House, is located in Prague and is well known for having a booklet with anti-Ukrainian themes translated into Czech. However, while the building only opens a few times a month for scheduled events and is otherwise closed to the public, the centre is active on websites and social media. It recently shared a speech by Russian President Vladimir Putin where he spoke about how Russia is today fighting its toughest battle for its future and is repelling the aggression of neo-Nazis and their masters. According to Czech Television, the Czech authorities, including the secret services, monitor the centre’s activities. They are also investigating possibly adding the centre to the national sanctions list. The list has only three names so far; Patriarch Kirill, oligarch Vladimir Yevtushenko and his son Felix Yevtushenko. It is estimated around a dozen people work around the centre, all with diplomatic status’ but they are unwilling to talk about its activities to the public. While some European countries...

by Prague Morning Jul 03, 2023

Bill on Legalizing Marriage for Same Sex Couples Approved in First Reading

The Czech Chamber of Deputies made a significant step towards legalizing same-sex marriage by approving an amendment to the Civil Code in its initial reading. Despite facing opposition, the draft amendment successfully withstood proposals to reject it and undergo further revision, paving the way for further evaluation. The draft will now be submitted to the members of the Constitutional Law Committee for consideration. It will have four months to review the draft instead of the usual two. In addition to the proposed amendment to the Civil Code, another group of lawmakers presented a proposal to amend the Charter of Fundamental Rights and Freedoms, a component of the Czech constitution, in order to define marriage as the union between a man and a woman. This proposal also passed its first reading. During the vote, out of the 141 attending MPs, 58 favored rejecting the same-sex marriage proposal, while 68 voted against it. Similarly, 60 MPs out of the 139 present voted to dismiss the constitutional amendment, while 64 voted against it. Both proposals will now advance to a second reading. If the amendment to the Civil Code is implemented, same-sex couples will gain the same marriage rights as opposite-sex couples, including...

by Prague Morning Jun 30, 2023

Czechs Ban All Russian Athletes From Local Competitions

The Czech government said late on Wednesday it had banned all athletes representing Russia from taking part in local competitions as the Russian invasion of Ukraine continued. The government said it banned “the participation of individual athletes and sports teams representing the Russian Federation in sports competitions and games organised on Czech soil”. At the same time, athletes and teams representing the Czech Republic must not take part in competitions held in Russia, it added in a statement. The decision was taken at the request of Czech sports associations. Previously, Czech ice hockey players playing in the Russian-based Kontinental Hockey League could not play for the Czech national team, for instance. But the current ban applies to all sports and all athletes competing under the Russian and Czech flags, respectively. There was no information as to whether the move also concerns Belarusian athletes. The Czech Olympic Committee said earlier this year it was against Russian and Belarusian athletes competing at the 2024 Olympic Games in Paris under a neutral flag. An EU and NATO member of 10.8 million people, the Czech Republic has provided Ukraine with substantial military and humanitarian aid since the Russian invasion started in February 2022. xosotin...

by Prague Morning Jun 29, 2023

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