Politics & Economics

Czech Government Undergoes Reshuffle After Pirate Party Leaves

Czech President Petr Pavel swore in two new ministers on Tuesday as part of a reshuffle of the government following the decision of junior coalition partner, the Pirates, to leave the Cabinet. Prime Minister Petr Fiala’s government retains a majority in Parliament’s lower house even without the Pirates, with four other parties remaining in the coalition. The president appoints and dismisses the government ministers at the request of the prime minister. The crisis began on September 24 when Fiala announced the dismissal of Regional Development Minister Ivan Bartos, head of the Pirates. He said he had lost trust in Bartos’s ability to deal with problems linked to a new digital system for issuing building permits. The Pirates said the move was in breach of their coalition agreement. Two other ministers representing the Pirates offered their resignations. But Fiala refused to accept the resignation of Foreign Minister Jan Lipavsky. The vocal supporter of Ukraine’s efforts to fight Russia’s invasion then opted to leave the Pirates and stay in the government. Fiala eliminated the post of the minister for legislation which had been occupied by the other member of the Pirates party who resigned. The changes came after a major opposition party...

 by Prague Morning Oct 08, 2024

Lipavsky to Remain Czech Foreign Minister After Pirate Party Quits Government

Jan Lipavsky is to remain the Czech minister of foreign affairs as an independent after he left the liberal Czech Pirate Party. Lipavsky and Minister for Legislation Michal Salomoun resigned from the party on October 1 following an internal party vote in which nearly 80% of voters decided to leave the centre-right cabinet of Petr Fiala after Fiala dismissed the Pirate Party leader, Ivan Bartos. “It will be an honour to continue in this work. Chairmen of four coalition parties backed me to continue,” Lipavsky told media following his talk with Fiala on October 2, adding that “I believe I will be able to continue working on Czechia being a reliable and pro-Western partner.” Fiala also announced the legislation portfolio will be taken over by the Ministry of Justice, headed by the controversial Pavel Blazek, Fiala’s neoliberal ODS party colleague. The foreign ministry under Lipavsky was credited for steering Czech diplomacy more clearly into the Western core after the previous cabinet of populist billionaire Andrej Babis openly flirted with Hungary’s radical rightwing leader Viktor Orban. During Lipavsky’s tenure, Czechia also held the EU presidency in the second half of 2022 and profiled itself as a staunch backer of Ukraine. Along with Hungary, Czechia...

 by Prague Morning Oct 02, 2024

Ivan Bartoš Confirmed that Pirate Party is Leaving the Government

The five-party centre-right Czech governing coalition weakened on Wednesday as the small centrist Pirate Party said it had been “ousted” over a personnel dispute. Prime Minister Petr Fiala said Tuesday he would dismiss Pirate Party chairman Ivan Bartos as regional development minister over his failure to introduce a digital building permit procedure. The move angered the Pirate Party, whose three cabinet ministers had included Foreign Minister Jan Lipavsky. “The Pirates are leaving the cabinet, or better, they have been ousted,” dreadlocked former IT expert Bartos told reporters. This will likely reduce the backing for Fiala’s cabinet in the 200-seat parliament from 108 to 104 votes as the Pirates have four lawmakers in the lower house. Bartos’s dismissal has yet to be approved by President Petr Pavel, who was at the UN General Assembly in New York with Lipavsky. Lipavsky said he would submit his resignation but also quit the Pirate Party, which would allow him to stay on as minister, possibly as an independent. The coalition, also comprising Fiala’s Civic Democrats, the small rightwing TOP 09 and centrist STAN and Christian Democrats parties, took power after a 2021 election. Grappling with fallout from the pandemic, high inflation sparked by the...

 by Prague Morning Sep 25, 2024

PM Fiala Proposes Dismissal of Development Minister, Shaking Coalition

Czech Prime Minister Petr Fiala proposed the dismissal of Development Minister Ivan Bartos on Tuesday, a surprise move that shook the centre-right coalition and likely means the exit of the smallest party. Fiala said Bartos, the outgoing head of the Pirate party, should leave his ministerial post after mismanaging the introduction of a digital system for issuing building permits. Fiala’s proposal will head to President Petr Pavel, who will officially need to fire Bartos. The Pirates have just four seats in the 200-seat lower house of deputies, and the ruling coalition would maintain a slim majority without the party, but the dismissal showed cracks in the government which faces a tough challenge from the populist opposition in an election in a year’s time. Bartos, who said he had met Fiala on Tuesday morning but only learned hours later of the intention to dismiss him, called the firing a “dirty trick.” Fiala praised two other ministers from the Pirate party, including Foreign Minister Jan Lipavsky, who has been the main voice of the government’s strong support for Ukraine in its war with Russia. Fiala told a televised briefing that he was not breaking up the coalition but said: “I am asking...

 by Prague Morning Sep 24, 2024

“Ukraine Needs to Be Realistic About Its Goals”, Said Czech President to NYT

In an interview with The New York Times (NYT) published on Monday, Czech President Petr Pavel said that Ukraine must be realistic about its war objectives and accept that some territory may remain, at least temporarily, under Russian occupation. Pavel, described by the NYT as one of Ukraine’s strongest supporters against Russian aggression, stressed that Ukrainians and their allies need to face what he called “reality.” “The most likely outcome of the war (…) is that part of Ukrainian territory will be temporarily under Russian control,” Pavel stated during his visit to the United States. He noted that there are “many examples” of territories held by Moscow on a temporary basis. Maximalist Goals Unattainable Pavel argued that neither side—Ukraine nor Russia—will achieve their maximalist goals. “Talking about the defeat of Ukraine or Russia is unrealistic,” he said, adding, “the resolution will lie somewhere in between.” His comments were echoed by Czech Foreign Minister Jan Lipavský (Pirate Party), who admitted that Ukraine is currently unable to reclaim all its lost territory. “That’s the reality we see,” he stated. However, Lipavský clarified that this doesn’t mean Ukraine should be pressured into ceding territory to Russia, thereby legitimizing the aggressor’s claims. Ukraine’s Future...

 by Prague Morning Sep 24, 2024

Czech Deputy PM Ivan Bartoš Resigns as Head of Pirates Party

Czech Deputy Prime Minister Ivan Bartoš has stepped down as leader of the Pirate Party following a significant electoral defeat over the weekend. The Pirate Party managed to secure only three regional council seats, a steep drop from its previous 99, as the opposition ANO movement, led by former prime minister Andrej Babiš, dominated the elections, winning in 10 out of 13 regions. “Given the outcome of the regional and senate elections, the leadership of the Pirate Party is collectively resigning,” Bartoš announced in a social media statement on Sunday. In addition to Bartoš, other high-profile resignations include vice-chair Klára Kocmanová, MEP Markéta Gregorová, and municipal representative Dominika Poživilová Michailidu. Jana Holomčík Leitnerová, another vice-chair of the party, had already announced her resignation, set to take effect by the end of September. The party plans to elect a new leadership team on November 9. These resignations signal a significant shift not only for the Pirate Party but also for the Czech political scene. Despite the party’s focus on anti-corruption and digital governance, its popularity has waned, reflecting a broader trend of declining support for progressive parties across Europe. “I’m proud of what we’ve achieved, but it’s clear the party needs...

 by Prague Morning Sep 23, 2024

Babis’ ANO Party Dominates Czech Regional Elections

The main opposition party dominated Czech regional elections and was ahead in the first round of voting for Parliament’s upper house, according to results released Saturday. With almost all the votes counted, the ANO (YES) movement led by former populist Prime Minister Andrej Babis won 10 of the 13 regions contested in the election on Friday and Saturday, the Czech Statistics Office said. The result reflected a stable support for ANO, which also won 10 regions in 2020 and nine in 2016, and a boost for Babis ahead of next year’s general election. ANO also has the most candidates advancing to the runoffs for 27 seats in the 81-seat Senate. The top two finishers in each district will face each other in a head-to-head vote next weekend. With ballots from 99% of stations counted, ANO had 19 candidates advancing to the runoffs. The Czech Statistics Office said five candidates reached the 50% threshold to win seats outright, leaving 22 seats to be decided in runoffs next week between the top two finishers in each race. The outright winners included two candidates from ANO, one from the Christian Democrats, a member of the governing five-party coalition, an independent representing the coalition...

 by Prague Morning Sep 22, 2024

Czech Republic to Receive €2 Billion in EU Flood Recovery Aid

On Thursday afternoon, Czech Prime Minister Petr Fiala met with European Commission President Ursula von der Leyen, along with the prime ministers of Poland and Slovakia, and the Austrian Chancellor, in Wroclaw, Poland. The leaders discussed financial aid for European countries hit by devastating floods, with the Czech Republic set to receive €2 billion from EU funds. The meeting, which aimed to address the severe flood damage across Central Europe, was attended by Slovak Prime Minister Robert Fico, Polish Prime Minister Donald Tusk, Austrian Chancellor Karl Nehammer, and von der Leyen. The Prime Minister of Romania had also been invited but was forced to decline due to ongoing flood recovery efforts in his country. Financial Support Agreed in Wroclaw “In Wroclaw, we agreed that the EU will release €2 billion (CZK 50 billion) from cohesion funds to assist the Czech Republic,” Fiala announced on the social media platform X (formerly Twitter). In total, Central European countries will receive €10 billion (CZK 250 billion) to help mitigate the aftermath of the floods. Ursula von der Leyen highlighted the critical need for financial resources to restore the damaged landscapes and infrastructure. She explained that the European Solidarity Fund would be used primarily...

 by Prague Morning Sep 21, 2024

Czechs to Develop Small Nuclear Reactors with Rolls-Royce

The Czech Republic has chosen UK firm Rolls-Royce SMR after assessing seven potential technology suppliers for its proposed small modular reactor programme. The Ministry of Trade said that the applicants were approached “on the basis of their potential suitability for placement in the Czech Republic … Rolls-Royce SMR emerged as the best company with which ČEZ (the Czech nuclear power company) wants to establish a strategic partnership”. The government will now carry out a “safety assessment of the British company” as was done for those who bid for the recent large nuclear units contracts – involving the Ministry of the Interior, Security Information Service, ÚZSI, Military Intelligence and other key institutions to ensure it complies with the state’s security requirements. The first small modular reactor (SMR) is planned by ČEZ at a site near the existing Temelin nuclear power plant in the 2030s, “before the start up of the new large Czech nuclear unit which is planned for before 2040”, the ministry said. ČEZ is also looking at other sites suitable for SMRs, including Tušimice and Dětmarovice where survey and monitoring work is taking place to see if they are suitable nuclear sites. Prime Minister Petr Fiala said: “Small modular...

 by Prague Morning Sep 20, 2024

Recent Flooding May Affect Czech Inflation

The floods of 2002 represent a natural disaster that caused the most damage in Czechia in modern history. The Czech National Bank’s 2002 annual report assessed the impact on GDP and inflation as small, with the floods not significantly affecting the Board’s decision. The macroeconomic impacts, including fiscal ones, were deemed unlikely to be substantial. The report envisaged a slowdown in real GDP growth of between 0.2 and 0.3 percentage points in 2002 while providing an additional positive impulse for the next year, roughly of the same magnitude but with a positive sign. The recent floods seem less damaging than the devastating event of 2002 in terms of economic cost, yet more severe than the 2013 floods. At the same time, several factors prevented higher losses compared to previous floods. Meteorologists provided early warnings, which proved to be very accurate. The individual river basins responded by releasing dams to accommodate the massive water influx. The infrastructure was better prepared than at any time before. Insured losses from this year’s floods are about to reach CZK 17 billion, according to the first estimates of the Association of Insurance Companies. Approximately half of the damages are incurred by households and the other...

 by Prague Morning Sep 18, 2024

Czechia Among EU’s Worst for Labor Market Flexibility and Gender Pay Gap

Despite having the lowest unemployment rate in the European Union, the Czech Republic struggles to create favorable conditions for its workers. According to the latest Prosperity and Financial Health Index, the country ranks 18th out of 27 EU members, reflecting a range of issues such as low labor market flexibility and a significant gender pay gap. One key factor contributing to this poor ranking is the limited availability of part-time work in the Czech Republic. Many employees lack the option to work flexible hours, a stark contrast to countries like the Netherlands, where 24% of employees can choose when and where they work through options such as flexitime or teleworking. In the Czech Republic, only 14% of employees enjoy such flexibility. The nation also performs poorly regarding gender pay equality, placing among the worst in the EU for the gender pay gap. Three Years of Decline in Labor Market Conditions The Czech labor market has been deteriorating for three consecutive years. In 2022, the country held the 15th position among EU members for labor market conditions. However, the latest analysis shows it has slipped to 18th place. Countries like the Netherlands, Austria, and the Nordic nations, including Denmark, lead in...

 by Prague Morning Sep 10, 2024

Czech Unemployment Steady at 3.8% Despite Increase in Job Vacancies

The unemployment rate in the Czech Republic remained stable at 3.8 percent in August, unchanged from July. This is slightly higher than last August’s rate of 3.6 percent. However, the number of job vacancies rose for the first time since March, with an increase of 1,221 month-on-month, according to the latest data from the Labour Office of the Czech Republic. The Labour Office notes that a stable unemployment rate is typical for the summer months, as employers tend to avoid major staffing changes during the holiday season. By the end of August, 3,232 people had started new positions in educational institutions, making education the sector with the highest number of new employees. The wholesale trade, catering, and hospitality sectors followed but with a significantly lower number of new hires. “At the end of August and the beginning of September, we always see an influx of recent graduates and young people registering with the employment office. In August, they made up four percent of all job seekers, the same proportion as in 2022 and 2023,” said Daniel Krištof, Director-General of the Labour Office. Krištof emphasized that school leavers and young people who did not get into further education or secure a...

 by Prague Morning Sep 09, 2024

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