Politics & Economics

Czech Foreign Ministry Condemns Russian Decision to Shut Down Rights Group

The Czech Ministry of Foreign Affairs on Tuesday said it condemned a Russian court decision to shut down the country’s oldest human rights group, Memorial International, and is following with concern Russia’s ongoing efforts to close sister organization Memorial Human Rights Center. “We urge Russian authorities to end their harassment of independent voices and human rights defenders and stand in solidarity with those who have been targeted for repression for exercising their rights to freedom of expression, association and peaceful assembly”. Memorial has highlighted repressions against civil society and the absence of an independent judiciary in the Russian Federation, as well as exposing the murders of millions of Soviet citizens and foreigners, including several thousand Czechs, the statement says. The decision triggers the closure of “Memorial International Historical, Educational, Charitable, and Human Rights Society, its regional branches and other structural units,” said Judge Alla Nazarova, according to the Interfax news agency. Founded in the late 1980s by Andrei Sakharov and other Soviet-era dissidents, the group took the new freedoms offered under Mikhail Gorbachev and used them to reveal raw truths about the fate of millions of victims of Stalin’s repressions. It was a poignant symbol of Russia’s new openness, but for...

by Prague Morning Dec 28, 2021

At Least Five Czech Ministers Cannot Lead Meetings in English

Several members of the new government will not be able to lead working meetings in English and therefore will use an interpreter. As Hospodářské noviny reports, at least five ministers have insufficient language skills. English in particular will be key to the Czech Republic’s forthcoming EU presidency. “We will prepare the Czech presidency of the EU professionally and responsibly in the autumn of 2022. We will guarantee that every member of the government can properly speak at least one foreign language,” Pirates and STAN parties representatives said. “According to my teachers, my English is at B1 level and I am trying to improve my skills further,” said Minister of Defense Jana Černochová (ODS), who speaks Polish and can passively speak Russian. Level B1 corresponds to independent users of the language, i.e. those who have the necessary fluency to communicate without effort with native speakers. Minister of Finance Zbyněk Stanjura (ODS) stated that he would need an interpreter for important business meetings. “I haven’t been very active in English lately, and I admit that my level of English is not good enough, yet” he said. During his presidency, Stanjura will chair the Ecofin Council of Finance Ministers, which regularly addresses important financial...

by Prague Morning Dec 27, 2021

Will the Czech Republic Boycott the Beijing Winter Olympics?

As the new Czech government was sworn into office last week, a pressing question for Prime Minister Petr Fiala’s cabinet is whether to join a growing international boycott of the Beijing Winter Olympics. Earlier this month, Fiala said he understood the reasons why officials from the United States, the United Kingdom and several other English-speaking countries will boycott the games that begin in February. He said his incoming top team would make a decision on the Czech response through a collective vote. The person likely to lead the campaign is Jan Lipavsky, the Czech Republic’s new foreign minister, who has publicly stated that he backs a diplomatic boycott, which will see politicians and official delegations shun the events in Beijing, even while Czech athletes still participate. Jakub Janda, director of the Prague-based European Values Center for Security Policy, says it is “highly probable” that Czech officials will boycott the games. It’s most likely that Lipavsky and other ministers won’t travel to Beijing for the Winter Olympics, but the second stage would be to declare an official diplomatic boycott of the Games, said Richard Q. Turcsanyi, a senior researcher at Palacky University Olomouc. European leaders were expected to discuss the boycott...

by Prague Morning Dec 26, 2021

Czech Economy Will Reach Pre-Pandemic Levels in 2022

Economic growth in the Czech Republic is predicted to reach pre-pandemic levels in 2022, according to a new annual report released by the Czech Ministry of Finance and the analysis of experts contacted by CTK. The Czech economy is expected to grow by 3.9% next year, up from 2.5% in 2021. Unemployment, on the other hand, will slightly fall while inflation will probably be the biggest problem next year. “Inflation will noticeably accelerate in 2022 and will be one of the main macroeconomic issues. Unless, for example, there is an extension of the waiver or a reduction in VAT on energy, we can expect a noticeable acceleration of annual price dynamics of more than eight percent at the beginning of the year. Single-digit inflation will still be a “positive result”, said Jakub Seidler, chief economist at the Czech Banking Association Association, said. Seidler estimates that an important inflation-boosting factor next year will be the rise in electricity and gas prices, which will gradually be reflected in the prices of other goods and services. Inflation is also being boosted by problems in global supply chains, which are pushing up the prices of many manufacturing inputs. Wage and salary growth are expected to remain above 5% in the...

by Prague Morning Dec 26, 2021

President Zeman Supports Compulsory Vaccination, Criticizes Climate Policy

In his traditional Christmas message to the nation, President Miloš Zeman praised the activities of the former government of Andrej Babiš (ANO), supporting compulsory vaccination, and criticizing the Green Deal. Zeman called the parliamentary elections, which led to the new government of Spolu (ODS, KDU-ČSL, TOP 09) and Pirates with STAN, “undoubtedly the most important event in the Czech Republic in the last year”. “I would like to appreciate the relatively correct course of the election campaign,” he said. He also praised the former Babiš government. “It has done a lot of good,”. He wished the deputies and members of the government many successes. “We have to respect the majority opinion of the population. Those who are not satisfied with the result of the election and at the same time did not vote, can only blame themselves,” he added. The cabinet has to deal with covid, energy and budget Zeman justified his opposition to Lipavsky (read more here) by his low qualifications or his views on relations with Israel and the Visegrad Four. However, in agreement with PM Fiala, he later appointed him. “I was told that it is important that (members of the government) are primarily politicians,” Zeman said...

by Prague Morning Dec 26, 2021

Czech Central Bank Again Increases Key Interest Rate

The Czech Republic´s central bank has again aggressively moved to increase its key interest rate in a continuing effort to tame soaring inflation. The 1 percentage point hike Wednesday to 3.75% was the fifth straight increase since June and was higher than expected by analysts. The bank, which considers high consumer prices a major threat, also had indicated it would raise the rate. Inflation jumped to 6% in November, the highest level in 13 years and well above the bank´s target of 2% target. Banks controlling monetary policy worldwide have started shifting their focus from stimulating the coronavirus-battered economy to combating soaring consumer prices that arrived during the recovery. Last week, the Bank of England became the first in a major advanced economy to raise interest rates since the pandemic began. Others, including the European Central Bank and U.S. Federal Reserve, are moving to exit pandemic-related economic stimulus. In the Czech Republic, the last time the central bank changed its rates was Nov. 4, when it increased the key interest rate by a point and a quarter to 2.75%. It was the first such move under the new government led by conservative Prime Minister Petr Fiala, which was sworn in...

by Prague Morning Dec 23, 2021

Czech Republic Fully Receive Gas Under Contracts With Russia

It was mentioned that the standard contracted volume of gas of around 80-90 mln cubic meters per day is delivered to Slovakia via Ukraine. Russian gas is being supplied to Slovakia in full as stipulated by bilateral contracts, a source in the directorate of the Slovakian gas transport system operator Eustream told TASS on Tuesday. A similar statement regarding his country was made by Ambassador-at-Large for Energy Security at the Ministry of Foreign Affairs of the Czech Republic Vaclav Bartuska. “The standard contracted volume of gas of around 80-90 mln cubic meters per day is delivered to Slovakia via Ukraine,” Eustream said. Meanwhile, when providing comments to reporters on the halt of Russian gas being pumped to Germany through the Yamal-Europe gas pipeline, Bartuska stressed that Russia did not restrict its supplies to EU countries, adding that there is no threat of disrupted gas deliveries, including to the Czech Republic. “Russia’s redistribution of gas transportation does not concern us [Czech Republic],” he said, adding that the Russian gas currently flows via the Nord Stream gas pipeline commissioned a decade ago. On Monday Gazprom again did not book pumping capacities for natural gas transit through Poland via the Yamal-Europe gas pipeline...

by Prague Morning Dec 21, 2021

What are the Most and Least Prosperous EU Countries?

A report into the levels of actual individual consumption (AIC) in the European Union — used as a measure of material prosperity of households — showed significant differences across EU member states in 2020. According to Eurostat, the member state with the highest AIC index per capita last year was Luxembourg with a score 45 percent above the EU average. Germany followed in second at 24 percent above the average with Denmark, the Netherlands and Austria making up the top five with scores 22 percent, 17 percent and 16 percent above the bloc’s average respectively. In total, nine EU member states had an AIC index higher than the EU average. The lowest score was recorded in Bulgaria, languishing 39 percent below the EU average. Other countries that performed poorly included Croatia (32 percent below), Hungary and Latvia both at 30 percent below average, and Slovakia at 29 percent below average. Poland also found itself among the countries with an AIC per capita lower than the EU average, at 17 percent below the average. Within the last three years, the AIC per capita compared to the EU average has changed in the majority of member states. Clear growth was recorded in Romania, where the index increased up to...

by Prague Morning Dec 21, 2021

Almost 750,000 Foreigners Employed In Czech Republic

The Czech Statistical Office (CZSO) published the current employment structure of the Czech Republic. The data shows that foreigners make up 14,2% of the workforce with 741,967 registered foreign employees. A big part of the foreign employees works in administration, customer support service, manufacturing, and construction industries. Both the number of foreign employees (644,164) and the number of foreign holders of a trade license (97,803) increased year-on-year in 2020, despite the ongoing covid-19 pandemic, CZSO said in its report published this week. From 2010 to 2019, the proportion of foreigners in the Czech labor market has grown steadily, though the Czech Republic is still below the European Union average in this regard. The trend was only interrupted last year due to the COVID-19 pandemic and related restrictions (-20,000 by mid-2020). The construction sector, where foreigners make up 28% of the workforce, was the hardest-hit. Despite this strong increase, the country still has a below-average share of foreigners in Europe compared to its overall population. The share of non-nationals rose in all sectors of the economy, and even make up the majority of workers (54%) in the administrative and support services sector. Ukrainians (145,000), Slovaks (121,000) and Vietnamese (62,000) are the main...

by Prague Morning Dec 19, 2021

The Czech Republic is “Turning West”

On his first day in office, Czech Prime Minister Petr Fiala sent a message to capitals around the world, one heard from Brussels to Budapest to Beijing: Our country is turning west. The message came in the form of Fiala’s choice for foreign minister, Jan Lipavský, a 36-year-old China hawk, Russian critic and vocal defender of the EU and NATO. In late October, he pledged to “pursue a renewed human rights tradition,” and vowed “strong cooperation at the EU and NATO level.” He specifically called out Russia and China as both representing a “threat to the Czech Republic,” arguing Czech foreign policy had to “properly reflect this.” The Czech Republic, he argued, had surrendered some of its principles in recent dealings with Russia and China. The country’s current relationship with the Kremlin, he added, is useless. Perhaps most notably for China, Lipavský favors deepening ties with Taiwan, a self-ruling island Beijing considers part of China. In October, Lipavský called Taiwan “an important economic partner of the Czech Republic … many times more important than the People’s Republic of China.” The statement will certainly rile Beijing, which has punished other EU countries such as Lithuania for warming to Taiwan. In addition to disagreements over Russia...

by Prague Morning Dec 18, 2021

Czech Republic President Swears in New Coalition Government

A new coalition government took office in the Czech Republic on Friday, with the coronavirus pandemic and soaring inflation presenting immediate policy challenges. President Milos Zeman swore in the Cabinet at the presidential chateaux in Lany, west of Prague, ending the government of his ally, populist billionaire Andrej Babis, as prime minister. Two political coalitions that together collected a majority of parliament seats in the country’s Oct. 8-9 election signed a power-sharing deal to rule together. The new partnership holds 108 seats in the 200-seat lower house, relegating Babis and his centrist ANO (YES) movement to the opposition. ANO narrowly lost the election with 27.1% of the vote. A three-party, liberal-conservative coalition known as Together, composed of the Civic Democratic Party, the Christian Democrats and the TOP 09 party, came in first with 27.8% of the vote. Together has formed a government with a center-left liberal coalition made up of the Pirate Party and STAN – a group of mayors and independent candidates – which placed third. Despite their differences on many issues, including climate change, same-sex marriage and the adoption of the euro, the coalition parties all support the Czech Republic’s membership in the European Union and NATO membership....

by Prague Morning Dec 17, 2021

Zeman to Appoint New Czech Government on Friday

On Friday, President Miloš Zeman will appoint the government of incoming Prime Minister Petr Fiala, including the disputed nominee for foreign minister, Jan Lipavský. Fiala announced he would get all his nominees on Monday at a press conference after meeting with the president. However, according to Fiala, the president’s reservations about Lipavský persist. The new cabinet will be appointed on Friday, Dec. 17, at 11:00 a.m. at the Lány chateau, the residence of the president. The incoming government wants the confidence vote in the Chamber of Deputies to take place in mid-January when it finishes its program statement. Last Friday, Zeman confirmed that he did not want to appoint Lipavský as the country’s foreign minister, citing his insufficient qualification and reserved stance towards Israel and the Visegrád Four. Lipavský and the head of state also share different views on relations with Russia and China, which Zeman did not mention in an official statement as the reason for his objections. The government coalition planned to fill in a competence lawsuit against the president over the dispute. Fiala called Zeman’s change of mind a “surprising end of the hour-long meeting.” “The government, including candidate Lipavský, will be appointed this Friday as proposed to...

by Prague Morning Dec 15, 2021

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