Politics & Economics

Czech Parliament Approves Czech Magnitsky Act

Czech lawmakers approved the Magnitsky Act on Friday, allowing the Czech government to impose sanctions on foreign entities violating human rights, supporting terrorism, or committing cyber crimes. The Czech government planned to adopt the Magnitsky Act by the end of next year, but the preparation of the draft was accelerated by Russia’s invasion of Ukraine. “It will make the Czech Republic the first Central European country to have its instrument to sanction serious human rights violations,” Czech Foreign Minister Jan Lipavský said. Among EU countries, France, the Netherlands, Latvia and Estonia have similar laws. The law sets out the conditions for the inclusion of entities on the national sanctions list and the procedure for preparing proposals for the inclusion of entities on the EU sanctions list at the Czech initiative. According to the proposal, the inclusion on the sanctions list will be decided by the Government on the proposal of the Ministry of Foreign Affairs. For example, the state will be able to prevent sanctioned individuals from entering and staying in the country or freezing their assets. Czech law was inspired by the US Magnitsky Act, named after a Ukrainian-born lawyer and tax advisor who died in Russian state custody...

by Prague Morning Oct 17, 2022

President Zeman Calls for Visegrad Group Expansion to Slovenia

The Visegrad group, which includes Czechia, Slovakia, Poland and Hungary, should expand to include Slovenia, President Miloš Zeman said at the first joint V4 meeting since Russia invaded Ukraine. During the meeting in Bratislava, leaders discussed energy security, inflation and the potential expansion of the Visegrad group to other countries. Zeman said he appreciated that all V4 countries had assisted Ukrainian refugees, noting that cooperation within the group is as useful as other similar formats, such as those within the Benelux countries. “Visegrad has proven its role by preventing attempts to distribute illegal migrants by quotas among individual European countries,” said Zeman, who also spoke in favour of expanding the V4 group to include Slovenia, which he said belongs to Visegrad cooperation. The presidents of Slovakia, Poland and Hungary, used the post-summit press conference to praise Zeman, whose second presidential mandate ends at the beginning of the next year. Polish President Andrzej Duda described him as a witty politician, while President Katalin Nováková said Zeman would be missed at the meetings. Slovak President Zuzana Čaputová pointed to the inconsistent position of the V4 countries on military aid to Kyiv. Hungary had earlier refused to allow Western arms supplies to flow...

by Prague Morning Oct 12, 2022

Inflation in the Czech Republic Reached 18 Percent in September

Year-on-year inflation in the Czech Republic reached 18 percent in September, according to data published Wednesday by the Czech Statistical Office (CSU). While the previous month saw the first dip in inflation for more than a year, it grew by 0.8 percent in September, reaching the highest year-on-year rate since December 1993. In year-on-year terms, rising food and energy prices remained the major causes of inflation. Flour prices, for example, jumped 64.1 percent from last year. In its commentary on the inflation report, the Czech National Bank (CNB) noted that the published figure is below their forecast of 18.8 percent. Still, the CNB predicts that inflation will peak at just above 20 percent in the coming months and slow down in the next year. The bank also predicts that in the first half of 2024, inflation should decrease close to its 2 percent target. Inflation in the euro area reached ten percent in September up from 9.1 percent in August, according to the preliminary data released in September by Eurostat. As stated in the relevant announcement, looking at the main components of inflation in the euro area, energy is expected to have the highest annual growth rate at 40.8 percent...

by Prague Morning Oct 11, 2022

Czech Politicians Condemn Russian Strikes on Ukrainian Cities

Ukraine’s capital, Kyiv, and several other major cities have been hit in a barrage of missile attacks that hit civilian targets and killed several people, according to Ukrainian officials. Russian President Vladimir Putin said his country had launched long-range missiles against Ukrainian energy, military and communications infrastructure. He said the barrage of missile fire on Monday was a response to “terrorist attacks” on Russian territory and warned an even harsher “response” could come. Prime Minister Petr Fiala stated that the attacks on Ukrainian cities are not aimed at damaging military infrastructure. “It’s about murdering the civilian population and spreading fear,” he said. Deputy Premier Ivan Bartoš called the bombings “nothing else than a vengeful war crime” and offered his condolences to the victims. Meanwhile, the chairman of the Senate’s Committee on Foreign Affairs, Defence and Security, Pavel Fischer, said that the extensive rocket strikes against Ukraine show these are not accidents but an intentional “war crime”. Missiles tore into Kyiv, the most intense strikes on the city since Russia abandoned an attempt to capture it in the early weeks of the war that started in late February. Explosions were also reported in Lviv, Ternopil and Zhytomyr in Ukraine’s west; Dnipro...

by Prague Morning Oct 10, 2022

First Prague European Summit: What Did It Actually Achieve?

Leaders from nearly all European countries gathered in Prague, on October 6 for the inaugural meeting of the European Political Community (EPC). What’s The Purpose Of The EPC? Many, including some officials from various European countries, wondered beforehand what the point really was of this meeting. It was something of an unknown. Besides, weren’t there already enough summits, institutions, and organizations bringing the continent’s politicians together? Apparently not. Judging from the background briefings and official statements during and at the end of a day full of plenary sessions, bilaterals, and roundtables, the verdict appeared to be that the EPC indeed was a good thing and that leaders liked the “freer” format in which everyone seemed to bump into each other in the labyrinth of corridors in the Prague Castle. “An informal platform” is how the host, Czech Prime Minister Petr Fiala, described it and noted that it offered a space to discuss all sorts of pressing issues among countries that rarely meet. French President Emmanuel Macron, the driver behind the new community, called his oeuvre, “an opportunity to build a strategic intimacy in Europe.” Was Anything Really Achieved? Roughly, three things. Firstly, that it makes sense to continue. Secondly, the...

by Prague Morning Oct 08, 2022

Qatar to Open Embassy in the Czech Republic

Qatar will open an embassy in the Czech Republic in the coming months, Emir Sheikh Tamim Bin Hamad Al Thani said in a joint press conference with Czech President Milos Zeman yesterday. The Czech Republic opened its embassy in Doha earlier this year. Al Thani, who is on an official visit to Prague, said he is looking forward to Zeman’s visit to Doha, which is preparing for the launch of the FIFA World Cup next month. He added that he discussed with his Czech counterpart the development of mutual economic relations. Al Thani reiterated Qatar’s clear position to resolve all disputes through dialogue and diplomacy. “As far as economic questions are concerned, we signed an agreement on economic cooperation today, as well as a letter of commitment to sign an agreement on the protection of investments after the latter is ratified by the European Commission,” President Zemen said. Al Thani ended his visit to Czechia prematurely after Brussels didn’t approve his attendance at Thursday’s summit of the European Political Community platform. According to Deník N, the sheik wanted to become an official participant in the summit and attend a gala dinner for about 50 political leaders. He reportedly left before...

by Prague Morning Oct 07, 2022

Czech Government Clears Way for Price Caps on Electricity, Gas

The Czech government cleared the way on Wednesday to impose caps on electricity and gas prices for households, public institutions and small companies for 2023 as the country faces soaring prices pushed higher by the war in Ukraine. The Czech Republic, like others in the European Union, has sought to shield people from soaring energy costs as gas supplies from Russia fell, driving up market prices. The Czech caps, finalised by a government order approved on Wednesday, will be set at 6 crowns per kilowatt hour of electricity and 3 crowns for gas throughout 2023, Prime Minister Petr Fiala said. The caps, first agreed by the government last month, apply also to public institutions like hospitals or schools, are in line with the government’s previous announcements. Smaller businesses will also be covered. Last month, the government agreed larger companies would draw from a 30 billion crown package, and a further 30 billion should be made available for smaller companies within a framework proposed by the European Commission. EU governments have debated a gas price cap for weeks, without reaching agreement, and the topic will be up for talks when member states’ leaders meet on Thursday and Friday in Prague for...

by Prague Morning Oct 06, 2022

Budějovický Budvar to Put Up Beer Prices as Costs Soar

The Czech state-owned brewery, Budějovický Budvar, will raise prices for all brands of its beer, from November. The increase will average 10%. It comes after the company said its prices will rise because of “vicious” cost pressures: electricity, gas, hops, malt and packaging materials. Budějovický Budvar’s chief executive Petr Dvorak said: “These kinds of price increases and inflation, I think we have not seen in a generation.” He added that putting up prices could lead to “softer beer consumption” as drinkers reined in their spending due to soaring living costs. “Electricity has risen in price by 300%, which means tens of millions of crowns per year. The same applies to the prices of cans, bottles, cardboard boxes, packaging materials and gas. For example, we expect a larger increase in the price of malt, which is our most important expense. Reports from hop factories show a catastrophic harvest. “Although we have long-term three-year contracts, I expect that they will not be fulfilled because hops simply do not exist. Raw materials and packaging have already increased in price by more than 10%,” he added. Budějovický Budvar increased its net profit by some 10% for the second straight year as it saw record...

by Prague Morning Oct 04, 2022

44 Heads of State Are Heading to Prague

On Thursday 6 and Friday 7 October, the heads of state of the 27 EU Member States and the leaders of 17 European countries outside the EU will attend two meetings hosted by the Czech Presidency of the Council of the EU in Prague. The first-ever meeting of the European Political Community will take place on Thursday, followed by an informal meeting of the members of the European Council on Friday. The aim of the European Political Community is to provide a policy coordination platform for countries across the European continent. Its inaugural meeting will be held at the level of heads of state or government. The agenda for the meeting will include thematic roundtable discussions in small groups focusing on security and stability, the economy, energy and climate, in addition to the opening and closing sessions. Along with the heads of state or government of the 27 EU Member States, the meeting will be attended by the leaders of 17 European countries outside the EU. Representatives from the following non-EU countries have been invited to attend: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Georgia, Iceland, Kosovo, Liechtenstein, Moldova, Montenegro, Northern Macedonia, Norway, Serbia, Switzerland, Turkey, Ukraine and the United Kingdom....

by Prague Morning Oct 04, 2022

Erdogan to Join EU Summit in Prague

Turkish President Recep Tayyip Erdogan will attend the informal EU summit which will start in Prague on Thursday, Turkish Ambassador to the Czech Republic Egemen Bagis confirmed. EU leaders and the leaders of 17 non-EU countries, including from the UK and Ukraine, have received invitations to the two-day summit organised by the Czech EU presidency. Turkey has recently signalled via its ambassador that it would like to strengthen its relationship with the EU after years of stalemate. A meeting between Armenian Prime Minister Nikol Pashinyan and Erdogan, requested by Armenia, could take place in Prague, Bagis told Lidovky. Discussions at the summit will focus on protecting gas pipelines and critical infrastructure after the damage to the Nord Stream 1 and 2 pipelines. It is also expected to see the signing of a joint EU-NATO declaration and to present the new format of cooperation with non-EU members known as the European Political Community. The project, first proposed by French President Emmanuel Macron, aims to bring together democratic European nations that share the EU’s values and may seek to join the bloc. Those invited to the summit include the leaders of non-EU countries Armenia, Azerbaijan, Georgia, Switzerland, Norway, Kosovo and the UK. NATO Secretary-General...

by Prague Morning Oct 04, 2022

Czech Republic Updates Warning for Citizens to Leave Russia

The Czech Republic widened a warning for its citizens to leave Russia on Monday following Moscow’s mobilisation orders last month, the Foreign Ministry said. The Czech government had already warned against travel to Russia and urged citizens there to leave in February after the country’s invasion of Ukraine. On Monday, the ministry expanded its warning, saying Czechs simultaneously holding Russian citizenship faced risks after a mobilisation call in September, a ministry spokeswoman said. “Citizens of the Czech Republic who also hold Russian citizenship should bear in mind that if they are on the territory of the Russian Federation, they are perceived by Russian authorities primarily as citizens of the Russian Federation,” the ministry said on its website. “The Czech Embassy in Moscow cannot provide them with adequate, full consular protection.” The ministry also newly warned about the inability to use bank cards issued in the Czech Republic in Russia due to sanctions. The Czech Republic has been one of Ukraine’s biggest supporters, sending military aid to Kyiv, and it has also taken in hundreds of thousands of Ukrainian refugees. The country stopped issuing visas for Russians, apart from for humanitarian issues, on Feb. 24, the day of the invasion, which...

by Prague Morning Oct 04, 2022

Czechia Declares its Support for Ukraine’s Path to NATO Membership

The leaders of nine NATO nations from Central and Eastern Europe issued a joint statement on Sunday in support of Ukraine’s path to membership in the alliance. “We firmly stand behind the 2008 Bucharest NATO Summit decision concerning Ukraine’s future membership,” the presidents of Estonia, Latvia, Lithuania, Montenegro, Poland, Czechia, Romania, North Macedonia, and Slovakia said on Sunday. At that 2008 summit, NATO allies said they “welcomed” Ukraine and Georgia’s aspirations to the join the alliance, though no clear timetable has ever been announced. Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskyy, tweeted on Sunday that 10 NATO countries support Ukraine’s bid for membership, including some nations that used to belong to the Soviet Union. “We are grateful for the leadership and responsibility,” Podolyak tweeted. “History is being made today.” Within 48 hours of @ZelenskyyUa signing application to join NATO, 10 bloc countries supported Ukraine’s membership in the Alliance – mostly countries that remember poisonous claws of ru-empire. We are grateful for the leadership and responsibility. History is being made today. — Михайло Подоляк (@Podolyak_M) October 2, 2022 Zelenskyy said on Friday that Kyiv has “accelerated” its application for NATO membership after Russia annexed four Ukrainian territories. “De facto, we have already proven...

by Prague Morning Oct 02, 2022

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