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...
The European Union’s unemployment rate remained stable at its historic low of 5.9% in June, according to Eurostat. The unemployment rate for the 20 countries using the euro currency meanwhile stood at 6.4%, the EU’s statistics office said on Tuesday. This means that 12.802 million people in the EU, 10.814 million of them in the eurozone, were unemployed in June 2023. The unemployment rate has steadily declined across the EU since the peak of the pandemic in 2020. Women are more likely than their male counterparts to be out of work in the EU with respective unemployment rates of 6.1% and 5.7%. How EU countries compare Spain continued to register the highest unemployment rate across EU countries in June at 11.7%, followed by Greece at 11.1%. At the other end of the spectrum, Malta registered the lowest unemployment rate at 2.6%, followed by Czechia and Poland, both at 2.7%. Most EU countries saw the unemployment rate stay stable or dip slightly from May, but Bulgaria, Czechia, Croatia, Lithuania, Luxembourg, Austria, and Finland all saw the monthly rate increase slightly. Youth unemployment In June 2023, 2.739 million young persons (under 25) were unemployed in the EU, of whom 2.204 million were...
The Czech economy grew slightly on a quarterly basis in the second quarter, showing signs of recovery as domestic demand rose while inflation pressures eased somewhat, preliminary data showed on Monday. The Czech data was the first in central Europe to show second-quarter developments, with a quarter-on-quarter rise of 0.1% after stagnation in the first quarter, and a year-on-year drop of 0.6%, a touch more than expected. While the Czech Statistical Office did not give a breakdown of the data, it said domestic demand contributed to growth and household consumption stagnated on a quarter-on-quarter basis. Since last year, central Europe’s economies have been hit by the strain of high prices cutting sharply into consumer activity, hitting growth sharply. Only slight relief is expected in 2023. Inflation in the Czech Republic fell to single-digit levels at the end of last quarter and the central bank is expecting it to cool further later this year. But interest rates remain high and the central bank is showing no rush to cut borrowing costs. Capital Economics said the data showed the recession the country felt at the end of 2022 was over but a recovery would be weak this year. “The recovery is likely...
The channel CT24 reported that the Czech authorities have frozen the assets of Russian oligarch Vladimir Yevtushenkov. According to Czech media, Yevtushenkov secretly controls an electric dryer company and owns the Savoy Westend hotel in Karlovy Vary. The total property of the Yevtushenkov family in Karlovy Vary is valued at 500 million Czech crowns (about $23 million). Yevtushenkov was put on the Czech sanctions list in June 2023. He is also under sanctions from the UK, Australia, New Zealand, and Ukraine. Forbes estimates Yevtushenkov’s fortune at $1.7 billion, claiming he still owns a 59% stake in the Sistema conglomerate, which operates several large Russian businesses including telecoms provider MTS and online retailer Ozon. In April 2022, Yevtushenkov reduced his stake in the company to 49.2%, transferring 10% to his son Felix and thus ceasing to be a controlling shareholder. His son and his wife are also on various sanctions lists.
Prague’s authorities are considering banning a concert by the Russian opera singer Anna Netrebko set to take place in the city in October, Seznam Zprávy reported. The news site said the event’s organiers would seek financial compensation from the city if it is blocked. This announcement comes amid growing political opposition from Prague’s leadership towards the concert, owing to Anna Netrebko’s past connections with Russian President Putin and her appearance on the Ukrainian sanctions list. Jiří Pospíšil, the deputy mayor of Prague overseeing cultural affairs, has expressed his determination to find a way to halt the concert, stating that holding the performance would be insensitive to the struggling Ukraine and that current times demand greater consideration for symbolic gestures. The concert, scheduled for October 16th at Smetana Hall in the Municipal House, is being organized by the Nachtigall Artists agency. Despite concerns about political interference, the agency’s producer, Alena Kunertová, has expressed confusion and emphasized that Netrebko had publicly denounced the war and distanced herself from President Putin. The concert has already generated significant interest, with approximately eighty percent of tickets already sold. In the event of cancellation, both the agency and the artist herself would seek compensation, as...
The Czech Foreign Ministry said it filed a lawsuit against Russia for compensation of 53 million crowns over lease payments on land in Prague and other cities used by the country’s embassy. In May, the Czech centre-right government rescinded orders from the 1970s and 1980s, made by the country’s then Communist rulers, that granted Russia the use of dozens of plots of lands free of charge. Russia would henceforth have to pay leases on the plots, the foreign ministry said after the orders were cancelled in May. That decision move marked a further deterioration of bilateral diplomatic relations that have been frosty since before Russia’s invasion of Ukraine. Foreign Minister Jan Lipavsky said on Wednesday the lawsuit, filed in a Prague court, was for “unjust enrichment” by Russia over the past three years. “We took this step because we did not receive any response (from Russian authorities) during pre-court calls,” he said in a statement, adding the ministry would not give further details. Czech European Affairs Minister Martin Dvorak said in May that unauthorised profits from the land could not be allowed to support the “occupation of Ukraine”. Russia’s Foreign Ministry said that retroactive demands for rent looked “like a...
The Russian Foreign Ministry has accused the Czech Republic of committing human rights violations in an extensive report titled “On the situation with human rights in individual countries.” The report examines the human rights situation in 43 countries, with a particular focus on the Czech Republic. According to the document’s authors, the Czech authorities have shown reluctance to address “chronic human rights problems” and instead appear to be adopting a “Russophobic course.” The report states: “The Czech Republic harbors ongoing issues that its authorities seem unwilling to resolve, as they actively engage in actions detrimental to foreign policy, particularly in their dealings with Russia. In recent years, Prague has notably taken a systematic slide towards a Russophobic stance, making human rights a key domestic and foreign policy priority. This slide has taken aggressive forms, including waging a ‘war’ against monuments commemorating Soviet soldiers, and whitewashing Nazi collaborators openly.” “Furthermore, there are increasing attempts to push the concept of ‘equal responsibility of totalitarian regimes’ for the outbreak of the Second World War in Czech socio-political discourse. This campaign seeks to equate symbols of the USSR and the Red Army with the Nazi swastika, leading to their prohibition, while also attempting to...
Fifteen years after the recognition of Kosovo’s independence, the Czech Republic is appointing an ambassador to Kosovo for the first time. Namely, Bohumil Mazánek, a career diplomat, former ambassador to Lithuania, consul general in Shanghai and Katowice, and chargé d’affaires in Thailand will be the first Czech ambassador to Kosovo. The announcement was made by the Ministry of Foreign Affairs of the Czech Republic in a press release. The President of the Czech Republic, Petr Pavel, at the proposal of the Government, has appointed 26 new ambassadors of the Czech Republic to the world, including Bohumil Mazánek in Kosovo, announced the Ministry of Foreign Affairs of the Czech Republic. “The Ministry wants diplomatic relations with Kosovo to be at the highest level because it is necessary to correct the absurd issue that the Czech Republic recognizes the independence of Kosovo, has an embassy in the country but does not have an ambassador”, said the spokesperson of the Ministry of Foreign Affairs of the Czech Republic, Daniel Drake. Until now, the Czech Republic only had a charge d’affaires at its embassy in Kosovo, because presidents Vaclav Klaus and then Miloš Zeman were opponents of the decision of the government of the...
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...
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...
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...
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....
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