Politics & Economics

Czechia Plans $19 Billion Nuclear Expansion to Cut Fossil Fuels

The Czech Republic is moving ahead with a $19 billion project to expand its nuclear energy capacity. Two new reactors will be built at the Dukovany plant, more than doubling the country’s nuclear output and reducing dependence on coal and gas. South Korea’s KHNP won the contract over France’s EDF. The reactors, each producing over 1,000 megawatts, are expected to begin operating in the second half of the 2030s. The deal also allows for future expansion at the Temelín plant, which currently has two 1,000-megawatt reactors, and includes plans for small modular reactors. Nuclear power currently supplies about 40% of the country’s electricity, with projections of 50–60% by 2050. Officials say the expansion will ensure stable, low-emission electricity for households, data centers, and electric vehicles. Fuel supply contracts with Westinghouse and Framatome remove reliance on Russia. While the plan has public support, environmental groups criticize its high cost and lack of permanent nuclear waste storage, and Austria continues to oppose Czech reactor projects. The Czech project is part of a wider European nuclear revival. Countries including France, Hungary, Slovakia, and Poland are investing in new reactors, while Belgium and Sweden have canceled plans to phase out nuclear power. The EU...

by Prague Morning Nov 16, 2025

Czech Central Bank Buys $1 Million in Bitcoin, and Other Cryptocurrencies

The Czech National Bank launches a $1M digital asset test portfolio including Bitcoin, marking its first step into blockchain-based finance. The portfolio is mostly made up of bitcoins, but also includes U.S. dollar-based stablecoins and a tokenised deposit, all bought through a regulated exchange it said, without giving specifics on the market used or exact assets. “The purpose of the portfolio is to gain practical experience with holding digital assets and to implement and test the necessary related processes,” the bank said. It will be held separately from the bank’s international reserves, and will not be actively increased. “In the test portfolio, the central bank will test the whole chain of processes associated with the purchase, holding and management of digital assets – from technical administration of keys and multi-level approval processes, through crisis scenarios and security mechanisms, to verifying anti-money-laundering compliance,” the bank said. Governor Ales Michl, who originally floated the idea of looking at bitcoin in January, said new ways of making payments and investments were emerging, and the bank wanted to be ready. “It is realistic to expect that, in the future, it will be easy to use the crown to buy tokenised Czech bonds and more...

by Prague Morning Nov 14, 2025

Food Prices Push Czech Inflation Higher, Energy Relief Expected in 2026

Czech inflation rose to 2.5% year-on-year in October, slightly above expectations, mainly due to higher food prices. Processed foods jumped by 4%, and overall consumer prices increased by 0.5% month-on-month. Service prices grew by 4.6%, while goods rose by 1.3%, indicating that core inflation likely reached 2.9%. Economists expect inflation to ease next year as energy prices decline. Distributors plan to cut electricity and gas prices by around 10% in January 2026, which could lower headline inflation to about 2.2%—and possibly below 2% if the government reduces regulated energy costs as planned. Still, core inflation is likely to stay above the Czech National Bank’s target, supported by household spending and expected wage hikes in the public sector ranging from 5% to 13%. The economy is projected to grow 2.6% this year and 2.7% in 2026, driven by rising investment and strong household consumption. Czech companies are increasingly investing abroad, especially in Germany, taking advantage of opportunities in its slowing economy. Interest rates are expected to remain stable next year, as steady growth and resilient consumer demand offset the effects of lower energy costs. If the EU delays the new emissions trading system (ETS2) by a year, analysts say 2027 could...

by Prague Morning Nov 10, 2025

Czech Lower House Elects Far-Right Party Leader as Speaker

Czech far-right leader Tomio Okamura won the post of speaker of the lower house in a vote on Wednesday, the first appointment of populist billionaire Andrej Babis’s newly formed coalition with fringe right-wing groups. The vote was a key step in forming a new government following a parliamentary election won by Babis’s ANO party a month ago. The outgoing centre-right government of Prime Minister Petr Fiala is required to hand in its resignation following the speaker’s election, which it will do on Thursday. But it will stay in office until a new administration is in place. Okamura, 53, has faced criticism as head of the Freedom and Direct Democracy party (SPD), which has campaigned against European Union membership. The SPD is a partner of Germany’s far-right Alternative for Germany in the European Parliament. Opposition parties have said his views are incompatible with holding one of the highest positions in Czech politics. “I understand that I am not everyone’s candidate, but I promise that if I receive confidence and am elected, I will be an impartial chairman for everyone,” Okamura said during a more than six-hour debate. Babis aims to form a government with Okamura’s SPD and the right-wing Motorists party...

by Prague Morning Nov 06, 2025

SPD Leader Tomio Okamura Nominated for Speaker of Parliament

A new political alliance in Czechia — made up of ANO, SPD, and Motorists — has announced its proposed leadership for the Chamber of Deputies, with Tomio Okamura expected to be nominated as Speaker. The announcement came during a press conference led by Alena Schillerová, vice-chair of the ANO movement, who outlined the coalition’s key nominations. According to CNN Prima News, Patrik Nacher (ANO) is set to be put forward for the position of First Deputy Speaker, while Jiří Barták will represent Motoristé sobě among the Chamber’s leadership candidates. Meanwhile, the future opposition has also named its nominees. The Spolu coalition — consisting of ODS, KDU-ČSL, and TOP 09 — plans to nominate Jan Skopeček (ODS), who currently serves as the First Deputy Speaker. The STAN movement, whose previous representative Věra Kovářová is stepping down, is expected to put forward its chairman Vít Rakušan. Earlier this week, on Monday, October 27, President Petr Pavel entrusted Andrej Babiš with forming a new government. Babiš has expressed a goal of completing the cabinet lineup by mid-December, according to Seznam Zprávy. However, the final composition remains uncertain, particularly regarding the potential appointment of Petr Macinka to head the Ministry of the Environment, a...

by Prague Morning Oct 29, 2025

Czechs Now Paying Among Europe’s Highest Electricity Rates

Households in the Czech Republic now pay among the highest electricity rates in Europe, according to data from Eurostat covering 39 countries. Domestic users in Czechia paid approximately €317.9 per MWh (around 7,736 CZK including VAT) for the first half of 2025—placing the country sixth-highest in the ranking. The figure covers all components of consumer electricity bills, including commercial charges, regulated fees, taxes and levies. Czech authorities gather these figures through the Czech Statistical Office, which collects data from major energy suppliers covering over 90 % of small-consumer household customers. Only Germany, Belgium, Denmark, Italy and Ireland recorded higher nominal household electricity prices in that period. At the same time, Czechia’s average exceeds the EU-wide average of about €287.2 per MWh (≈ 6,982 CZK) and approaches the euro-area average of roughly €300.6 per MWh (≈ 7,308 CZK). That said, the comparison covers households of varying sizes and usage types. In Czechia, consumers who rely on electricity for heating and hot water pay a lower rate per MWh than those without those uses. If those households were excluded, Czechia’s ranking would drift down to 13th. In contrast, Austria and Germany make no such distinction in pricing between smaller and larger consumption...

by Prague Morning Oct 29, 2025

Eggs and Milk Cost More Again — Czech Shoppers Face Rising Food Prices

Czech consumers are once again paying more for everyday groceries. The latest data from the Czech Statistical Office show that the prices of eggs and dairy products have climbed sharply in recent weeks, continuing a trend that began earlier this year. A carton of ten eggs now costs 67.19 CZK, which is 3.47 CZK more than in September and nearly 18 CZK higher than a year ago. The price has been steadily increasing since August and is now close to its highest point since May, when eggs peaked at 68.32 CZK. Industry experts warn that the situation could worsen in the coming years. Starting in 2027, cage farming will be banned in the Czech Republic — a change that could push prices up even further and reduce local egg production. The Czech-Moravian Poultry Association has cautioned that not all farmers will be able to switch to cage-free systems, potentially leading to greater reliance on imports. Producers say the rising prices are the result of multiple pressures — from higher energy and labor costs to the impact of avian flu outbreaks, expensive breeding material, and costly packaging. Dairy prices are also increasing. A liter of semi-skimmed milk now averages 27.80 CZK,...

by Prague Morning Oct 28, 2025

Future Czech Government Coalition Pledges Continued Ties with EU, NATO

Any possible future referendum will exclude questions about Czechia’s geopolitical alignment, ANO deputy chairman says. The future government coalition of the Czech Republic pledged the country’s continued membership in the EU and NATO on Friday. The upcoming coalition of the ANO party, the Freedom and Direct Democracy (SPD) party and the Motorists’ Party agreed to clearly affirm Czechia’s membership in the EU and NATO in a policy statement. ANO deputy chairman Karel Havlicek noted that any future referendum will exclude questions about Czechia’s geopolitical alignment. Motorists’ lawmaker Filip Turek, who is seen as the coalition’s possible foreign minister, pointed to strong transatlantic relations, including with the US. President Petr Pavel, who by law appoints prime ministers and ministers, has urged parties not to rush talks. He and Babis will meet on Monday for an update. Parliament meets on November 3. The first session will elect a new speaker before the resignation of the current cabinet, the earliest time a new prime minister can be appointed. Babis, a Donald Trump fan and ally of Hungary’s Viktor Orban, has flagged more focus on domestic and EU affairs and no support for Ukraine from the national budget, a change from the outgoing centre-right...

by Prague Morning Oct 25, 2025

Babiš Finalises Czech Coalition Deal With SPD and Motorists

The parties forming the new Czech government have reached an agreement on how ministries will be divided among them. Andrej Babiš, leader of the Action of Dissatisfied Citizens (ANO) party, announced the deal on Friday evening on X. As the head of the party that received the most votes, he is expected to become prime minister. The cabinet will have sixteen members, though specific names have not yet been revealed. Under the agreement, ANO will control nine ministries in addition to the prime minister’s office. Politicians from the Freedom and Direct Democracy (SPD) party will lead the defence, agriculture, and transport ministries, while the Motorists are set to take charge of foreign affairs, culture, environment, and the new Ministry of Sport, Prevention and Health. Babiš said the coalition aimed to finalise the division of portfolios by Friday – and has now done so. The new government will not include ministers responsible for European affairs, legislation, or science, research and innovation. Coalition talks will continue next week on policy issues. Parliamentary elections in the Czech Republic were held late last week and were won by Babiš’s ANO party, which is also a member of the Patriots for Europe group at the...

by Prague Morning Oct 11, 2025

Babiš in Talks With Far-Right and Anti-Green Parties After Election Win

Andrej Babiš, the leader of the populist ANO party, is in talks with the far right and anti-EU Freedom and Direct Democracy (SPD) party and anti-green and staunchly Eurosceptic Motorists for Themselves to form the next government. Although it is not yet clear whether Babiš will be able to form an ANO minority cabinet, backed by SPD and the Motorists in the parliament, or bring SPD and the Motorists to government positions, it is likely that Czechia will have the most Eurosceptic cabinet yet seen. “There are talks between ANO, SPD and Motorists taking place, and these will certainly take place in many further rounds,” President Petr Pavel said after he held talks with five party leaders at the Prague Castle. “We are putting together bodies of the Chamber of Deputies, that is, leadership and committees,” Fiala said after meeting Babiš, fuelling speculation that SPD leader Tomio Okamura could become the next parliament speaker. Okamura faces police charges following the investigation into the anti-immigration campaign carried out by the SPD last year. Member of the European Parliament and the Motorists’ honorary chairman, Filip Turek, widely known since the European Parliament elections for his home collection of Nazi-era memorabilia, was more...

by Prague Morning Oct 07, 2025

Europe Watches Closely: Will Babiš Become the ‘Czech Orbán’?

As the Czech parliamentary elections reshape Central Europe’s political map, European media are following developments in Prague closely. Outlets in Hungary, Poland, and Slovakia describe the return of Andrej Babiš as a potential turning point that could redefine alliances and challenge Czechia’s current pro-Western orientation. Hungary’s pro-government daily Magyar Nemzet, which supports Prime Minister Viktor Orbán, called Babiš’s victory a possible revival of the Visegrád Four’s influence. “Babiš and Orbán have long shared views on migration, opposition to Brussels-style centralization, and resistance to Western war pressures,” the paper wrote, suggesting that a Babiš-led government could “reinvigorate patriotic cooperation” in the region. By contrast, Hungary’s left-leaning Népszava wrote that the Czech Republic—until now seen as “an island of calm in turbulent Central Europe”—may be changing direction. Under President Petr Pavel and Prime Minister Petr Fiala, the country has been among Ukraine’s strongest European supporters. “But even here,” Népszava noted, “war fatigue is setting in.” Polish Concerns Over Foreign Policy Poland’s Rzeczpospolita questioned whether a Babiš government would “turn Czech foreign policy upside down and drift toward Moscow.” It recalled that Babiš recently joined the far-right Patriots for Europe group in the European Parliament—alongside Orbán and Marine Le Pen—but this time avoided...

by Prague Morning Oct 05, 2025

Andrej Babiš Calls Election Win the “Peak of His Political Career”

After his ANO movement secured victory in the Czech parliamentary elections, Andrej Babiš described the result as the highlight of his political life. Speaking on Saturday evening, he thanked voters who turned out across the country and promised that his party would focus on improving life in the Czech Republic. “We want our country to be the best place to live in the European Union. We will do everything we can to achieve that—believe me,” Babiš told supporters. “We are incredibly happy and grateful to everyone who voted. That’s what democracy is about—people deciding freely.” Babiš called the election campaign “a ride,” adding that the victory marked a “historic success” for the ANO movement. He thanked his campaign and PR teams for their work and assured his voters: “We will never betray you. You can count on us to deliver on our promises.” Looking ahead, Babiš said he plans to begin coalition talks with the SPD and the Motorists party, aiming to form a single-party-led government under ANO. Meanwhile, Prime Minister Petr Fiala, head of the SPOLU coalition (Civic Democrats, TOP 09, and Christian Democrats), reacted to the result by acknowledging defeat. “The outcome is clear and must be accepted...

by Prague Morning Oct 04, 2025

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