Politics & Economics

Babiš: The EC Should Release COVID Vaccine Patents

During the European Council summit in Porto, Czech Prime Minister Andrej Babiš asked European Commission President Ursula von der Leyen to try to get additional Covid-19 vaccines for June. “That’s the most important thing for us now,” he said. According to him, Europe should also launch a joint campaign to promote vaccination. According to Babiš, the Czech Republic will reach a stage in July or even earlier when it will have to start a campaign promoting vaccination. “I told colleagues to ask the European Commission to run a Europe-wide campaign. It seems that the lower the age, the lower the interest in vaccinations,“ added Babiš. “People need to understand that vaccines are safe, that this will allow them to enter everywhere without any problems. While those who are not vaccinated will have to be tested, and it will complicate their lives,“ the prime minister said. He also expressed the Czech Republic’s position on the possible release of patents for Covid-19 vaccines. “The European Union stands is to discuss any proposal that addresses this crisis effectively and pragmatically. (…) We call on all countries producing vaccines to allow exports and to avoid anything that could disrupt supply chains,“ said von der...

by Prague Morning May 13, 2021

Moody’s: Czech Republic in Danger of Losing Investor Confidence

On Monday, Moody’s rating agency warned that Czech public finances might not be sustainable in the long run. According to the agency, the government’s budget plans for the medium term do not include any significant consolidation objectives, which has a negative effect on the assessment of creditworthiness. According to Moody’s, the consolidation of the state budget will be a task for the next government, which will be formed after the parliamentary elections scheduled for October. The rating agency pointed out that creating a strategy for reducing budget deficits and stabilizing or reducing the government’s debt will be key to Czechia’s future creditworthiness. At the beginning of February, Moody’s confirmed the Czech Republic’s credit rating at Aa3 with a stable outlook. A credit rating is an important guide for investors, as it shows them the likelihood that loans will be repaid, which has a significant effect on the willingness of creditors to provide loans to the state or other entities. It also affects the terms of the loan, such as the interest rate. The higher the rating, the better creditors perceive the borrower and the more likely they will accede to cheaper loans. “Moody’s warning is the first shot, fiscal consolidation was...

by Prague Morning May 12, 2021

Czech National Bank Expects GDP Growth

Annual GDP growth will strengthen to 6% in the short term in 2Q 2021, but this will be mainly due to a low comparative base. This is expected by the Czech National Bank (ČNB) with the view that the domestic economy will breathe into robust and sustained growth only with a more significant lifting of anti-epidemic measures during 2H 2021. According to ČNB, exports of Czech companies will return to dynamic growth thanks to the resolution of current problems in industry and international trade, as well as the gradual recovery of foreign demand. Overall, the GDP dynamic is projected to slightly exceed 1% in 2021 and then accelerate above 4% in 2022. Industrial production in the Czech Republic grew by 14.9% y/y in real terms in March 2021. The value of new orders increased by 23.0% y/y. The high annual growth in production was recorded mainly in sectors that have been hit by a complete closure since mid-March last year and which are also very closely linked. That is the production of cars, where production increased by 47% y/y, the production of rubber and plastic products with a growth of 22% and the production of electrical equipment. xosotin chelseathông tin...

by Prague Morning May 11, 2021

EU Approves EUR 1.9 bln Czech Aid Scheme for Companies Hit by Pandemic

The European Commission on Monday approved a 1.9 billion euro (CZK 50 billion) Czech scheme to support companies affected by the COVID-19 pandemic. The Czech program will ensure liquidity support for businesses that have seen their revenues shrink due to lockdowns and other measures to curb the pandemic, EU Commissioner Margrethe Vestager, who is in charge of competition issues in the EU’s executive, said. Under the scheme, companies can get grants, guarantees or loans if they have experienced a minimum decline in turnover in the range of 25% to 50% since February 2020 compared to the time before the pandemic. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Many EU companies have seen their revenues and activities significantly decline because of the restrictive measures put in place to limit the spread of the coronavirus. This €1.9 billion Czech scheme will ensure liquidity support to companies affected by the coronavirus outbreak. We continue working in close cooperation with Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules.” In the particular case of companies active in the cultural sector, the eligible ones are those that have been prevented or restricted...

by Prague Morning May 10, 2021

A Year After Shutdowns, Czech Industry Gains Momentum

Czech industrial output showed a bit of momentum in March, growing 3.2% month-on-month and marking its biggest year-on-year jump since 2007, a year after factory shutdowns at the outset of the COVID-19 pandemic sent production crashing. The monthly rise was higher than some analysts expected and comes despite central European factories, geared heavily to the car industry, grappling with a global shortage of semiconductors and delayed supply deliveries. On a year-on-year basis, Czech output soared 14.9%, higher than expected and following a 2.6% decline in February. The gain was mainly a reflection of a low comparative base, as many factories idled production one year ago. The stoppages have not been repeated during stronger waves of the pandemic since. Komercni Banka’s Senior Economist Michal Brozka said in a note that the monthly rise showed industry could still expand even amid component delivery problems. The bank expects the Czech industry to gain around 9% this year but that March data gave hope growth could be over 10%, with the component supply disruptions being the main drag, Brozka said. In separate data, the Czech trade balance in March also showed a year-on-year jump to a surplus of CZK 18.5 billion, rising largely on...

by Prague Morning May 07, 2021

Another Health Minister in Trouble: Arenberger Accused of Hiding Millions in Revenue on Tax Returns

Czech Minister of Health Petr Arenberger is being accused of hiding millions in revenue on his tax returns. The accusations come from TV Seznam who claims that he made millions of crowns for clinical studies of new drugs and illegally conducted these activities on a trade license and claimed it was for the purpose of cosmetic services. Arenberger has worked as the director of the Královské Vinohrady Hospital as well as running clinical trials for pharmaceutical drugs for over a decade. As part of his trade license and as a public figure, he is required to disclose his income from business dealings to the public. Arenberger has denied that his tax returns lack millions in revenue and says the clinical trials his private practice ran were extremely costly. “Clinical trials are being carried out in my surgery, which would not be profitable in relation to the Royal Vinohrady University Hospital, because a very small number of subjects are always included in these clinical trials,” said Arenberger. He went on to explain to ČTK the high costs associated with his clinical studies. “This activity has not only revenues but also quite high costs. Within these projects, co-workers, study coordinators, and many...

by Prague Morning May 07, 2021

Jan Hamáček Files Complaint Against Journalists

The publisher of SeznamZpravy.cz claimed that Deputy PM Jan Hamáček was planning to pay a visit to Moscow on April 19 to brush the 2014 Vrbětice ammo depot explosion scandal under the carpet in exchange for obtaining a shipment of Russia’s Sputnik V COVID-19 vaccine. Hamáček will seek a defamation lawsuit and demand CZK 10 million in compensation after Seznam Zpravy portal published an article about the official which he believes tarnishes his reputation, he told an urgent briefing in Prague on Wednesday. On Tuesday, Seznam Zpravy claimed that Hamacek was planning to pay a visit to Moscow on April 19 to brush the 2014 Vrbětice ammo depot explosion scandal under the carpet in exchange for obtaining a shipment of Russia’s Sputnik V COVID-19 vaccine and Moscow’s agreement to conduct a meeting of the Russian and US presidents in Prague. “I will file a complaint [with the police] about the crime committed by the authors [of the article]. I will demand to investigate whether crimes of defamation, spreading false information to incite panic and cause damage to rights of a third party did take place. Simultaneously, I will file an administrative lawsuit against the [Seznam Zpravy] publisher who bears responsibility...

by Prague Morning May 05, 2021

Czechs Trust Their Government Least of All Europeans, Recent Poll Suggests

According to Eurobarometer, a survey conducted by the European Commission, the share of Czech citizens who trust the national government plunged from 40 to 19 percent in year-on-year terms, which constitutes the lowest rate in the entire Union. The survey, which was published in May, also illustrates that Czech confidence in the European Union rose from 39 to 48 percent year-on-year, the highest level since 2013. Czechs do not favour the parliament, either. The share of people who trust that legislative body dipped from 25 to 15 percent. Conversely, confidence in international organizations, such as the UN, increased dramatically, reaching 57 percent compared with 45 percent trust last year. The average confidence in national governments and parliaments of all the EU countries is approximately 36 percent. Public trust in the Union averaged at 49 percent, which is similar to the level of trust Czechs maintain. That being said, the Czech Republic remains one of the countries with the least confidence in the EU. Trust in a Union is the highest in Portugal with 78 percent and the lowest in Finland with 37 percent. Distrust of the Czech government is also reflected in the respondents’ views on the level of democracy...

by Timur I. May 04, 2021

Prague’s New Housing Strategy Includes Plans for 9,000 Flats Each Year

The Prague Institute of Planning and Development (IPR Prague) has released a new plan for future housing development in the city. The Housing Development Strategy, which replaces a document from 2004, concentrates on building affordable and quality housing, increasing the number of municipal apartments, and cooperation between the city and significant players in the housing field. Most new housing construction will take place on unused brownfield sites and on suitable municipal land. The new document takes greater account of the current needs of the developing city, and seeks to ensure that Prague no longer has some of the lowest levels of affordable housing of Europe’s capital cities. The new housing strategy includes five priority areas: the construction of affordable and quality housing, development of the municipal housing fund, sustainable housing for specific groups of the population, attractive housing throughout Prague, and cooperation between the city and key players. Petr Hlaváček, Prague’s Deputy Mayor for Spatial Development and the Land Use Plan, says: “It is in the interests of Prague itself that we create a sufficient number of affordable new apartments. At the same time, we must concentrate on raising the quality and attractiveness of housing and improving its sustainability. This will also improve...

by Prague Morning May 03, 2021

Russia Expels Seven EU Diplomats Over ‘Solidarity’ With Czechs

Moscow on Wednesday (28 April) expelled seven European diplomats after their countries ordered Russian diplomats to leave in solidarity with the Czech Republic, which is engulfed in a diplomatic row with Russia. The Russian Foreign Ministry summoned their ambassadors to order three diplomats from Slovakia, two from Lithuania, one from Estonia and one more from Latvia to leave Moscow in a week. “Four diplomats from Estonia, Latvia, and Lithuania have been declared “persona non grata” and must leave the country within seven days.” Moscow’s action continues the diplomatic warfare between Russia and several EU nations that began earlier this month when the Czech Republic expelled scores of Russian diplomats over the alleged involvement of Russian spies in a massive ammunition depot explosion in 2014. Last week, Lithuania expelled two Russian diplomats and Estonia and Latvia each ordered one Russian Embassy worker out in solidarity with Prague. Estonia, Latvia and Lithuania, all former Soviet republics, broke away from the Soviet Union three decades ago and joined NATO and the European Union in 2004. They are among the Kremlin’s harshest critics. Slovakia expelled three Russian diplomats last week in a sign of solidarity with the Czechs. Moscow responded Wednesday by ordering three...

by Prague Morning Apr 28, 2021

Demonstration Against Inclination to Russia to Occur on Thursday

Million Moments for Democracy, a civic organization of pro-democratic nature, has announced a demonstration against the inclination of President Miloš Zeman and other Czech politicians towards Russia. Planned on Thursday, demonstrations will be held in Prague and dozens of other cities, including Plzeň, Hradec Králové, Ústí nad Labem and Brno. “Instead of supporting his own country, the president repeats the same fairy tales as pro-Russian disinformation sites and Russian propaganda. His continued presence in the office is a security threat to our republic,” said Benjamin Roll, chairman of the organization. “We will meet on Wenceslas Square and in other cities across the Czech Republic and demand the end of President Zeman. This is the only chance for our country to get out of the current marasmus state in time. We call on all citizens of the Czech Republic to join the protest in their municipalities,” was stated in a Tuesday press release of Million Moments. President Miloš Zeman was criticized by the opposition for a speech on Sunday, in which he said that two investigative versions were being worked on in the case of the explosion of an ammunition depot in Vrbětice in 2014. First Deputy Prime Minister Jan Hamáček...

by Timur I. Apr 28, 2021

Czech Republic Doesn’t Have to Return Any EU Subsidies, EC Confirms

Based on an audit of companies from the Agrofert holding, the Czech Republic does not have to return any money to the European Union. A spokesman for the European Commission told reporters on Monday that the Czech authorities had not asked for reimbursement of any subsidies that had been subjected to the audit. On Friday, the Commission published a final audit report, which found that Prime Minister Andrej Babiš has a conflict of interest and that the Agrofert holding is not entitled to any subsidies from Feb. 9, 2017, when the amendment to the Czech Conflict of Interest Act came into force. According to the audit, the Czech Republic would have to return all EU subsidies, which Agrofert has been striving for since then. “The Czech authorities have not declared any expenditure for any of the operations covered by the report. That is why no financial correction is necessary,“ said Commission spokesman Balázs Ujvari yesterday. According to him, the Commission will continue to address only some of the audit recommendations with the Czech Republic, which have not yet been taken into account by the Czech authorities. Babiš rejected the conclusions of the audit claiming they were biased and manipulated, and the Czech...

by Prague Morning Apr 28, 2021

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