Politics & Economics

Czech Spenders Go Wild as Retail Sales Surge

Czech real retail sales have gained pace, growing similar to periods of prime economic expansion. The results slightly surpass market expectations, and robust spending suggests that price pressures remain a viable concern rather than a distant memory. Real retail sales fly high Real retail sales in September increased by 5.6% YoY and by 0.2% MoM, excluding motor vehicles. In the motor vehicles segment, sales added 0.9% YoY and 0.6% MoM. Sales of non-food goods picked up by 0.4%, while sales of food lost 0.1%. Internet sales continued to dominate as the main contributor to real retail sales annual dynamics, increasing at a double-digit pace since the beginning of the year. Sales in specialized stores of pharmaceutical and medical goods added 9.8% YoY, in cosmetics 9.7% YoY, and clothing and footwear 6.7%. Culture, sport, and recreation saw 3.7% more sales than in the previous year, while sales in household goods stores fell by 2.0%. The Czech consumer has continued to support the economic rebound, which will likely be reflected in the 3Q GDP breakdown when available. The increase in real retail sales of 5.6% annually is stronger than the 4.7% average recorded between 2016-19 when the economy expanded by 3.5% on...

 by Prague Morning Nov 08, 2024

Trump’s Victory Likely to Bring Major Changes for the Czech Republic

With Donald Trump back in the White House, the Czech Republic is preparing for a potential shift in U.S.-Czech relations. Czech politicians and experts are weighing the likely economic, political, and security impacts of Trump’s return, with particular concerns over the U.S.’s support for Ukraine and the implications of Trump’s protectionist trade policies. Political Concerns: U.S.-Czech Ties and Ukraine Support Czech politicians have voiced apprehensions that Trump’s presidency may bring uncertainty to Czech-American relations. Key figures, such as Czech Foreign Minister Jan Lipavský, are raising questions about how Trump’s approach could influence America’s stance on Ukraine amidst Russian aggression. While Lipavský concedes that certain aspects of Trump’s policy might align with Czech interests, there is significant concern about a potential reduction in U.S. support for Ukraine, which could have ripple effects across Europe. Trump’s view of Europe has often been blunt, once likening it to a “little China.” This phrase hints at a possible shift in America’s relationship with Europe, including the Czech Republic, with many across the continent left wondering how his foreign policy choices might impact their nations. Push for European Independence in Defense Member of the European Parliament Ondřej Kolář believes that Trump’s victory could serve as...

 by Prague Morning Nov 07, 2024

Trump’s Victory Shakes the Czech Crown, Among the Hardest Hit Currencies Worldwide

As Donald Trump secures his return to the White House, the global financial markets are bracing for impact. His victory has already sent economic ripples across the world, with the Czech crown emerging as one of the hardest-hit currencies globally. The Czech currency ranks among today’s biggest losers, joining the Mexican peso and Hungarian forint in significant declines. On the flip side, the Russian ruble has defied the trend, strengthening amidst the Trump-driven market shifts. For some world currencies, Trump’s presidency would spell even more turbulence. The Hungarian forint, for instance, stands particularly vulnerable. Hungary’s economy depends heavily on China for electric battery production and Germany for its automotive industry—two sectors likely to feel the strain of Trump’s trade policies. Tariffs could place Hungary in a squeeze, damaging the forint further. Ironically, the biggest challenge to Hungarian Prime Minister Viktor Orbán’s re-election bid in 2026 might not be domestic politics but Trump’s foreign policy. The Czech crown faces a similarly uncertain future. Much like Hungary, the Czech Republic relies on open international trade, which may face hurdles under Trump’s tariff-heavy agenda. Any barriers to this flow could directly undermine the Czech economy, with the crown likely to continue its downward...

 by Prague Morning Nov 06, 2024

Czechia Signs Historic Treaty on Relations with the Vatican

The Czech Republic signed a treaty with the Vatican, ensuring religious freedom and recognising Catholic marriages. It needs parliamentary approval to take effect. The Czech Republic signed a treaty on Thursday regarding its relations with the Vatican, becoming one of the last European Union countries to do so. The document was signed Thursday in Prague by conservative Prime Minister Petr Fiala and the Vatican secretary of state, Cardinal Pietro Parolin. Fiala called it a “balanced” document that “fully respects our legal order.” The full text was not expected to be made public until after the treaty is ratified. Among its provisions, the country guarantees the freedom of thought, conscience, and religious belief and recognizes Catholic marriages. It also gives a legal ground for the Catholic Church to provide religious services in hospitals, prisons, military, and police forces. To come into effect, the document still needs to be approved by both houses of Parliament and ratified by President Petr Pavel. The Vatican has signed a similar treaty with 25 EU member states and a total of 64 countries worldwide, the Czech government said. Fiala’s coalition government, sworn in following the 2021 general election, said in its policy statement that it was ready to...

 by Prague Morning Oct 29, 2024

Slovakia Clears Andrej Babiš of Collaboration with Communist Secret Police

The Slovak Ministry of the Interior has reached a settlement with former Czech Prime Minister Andrej Babiš, resolving a long-standing dispute over his alleged involvement with the communist-era State Security (StB). The case revolved around Babiš’s unauthorized registration as a StB agent, which he has consistently denied. On October 11, 2024, the Bratislava IV Municipal Court approved the settlement, which acknowledged that Babiš was wrongly listed as an StB agent under the code name “Bureš” with registration number 25085. According to the agreement, Babiš did not knowingly cooperate with the StB. As part of the settlement, Babiš has agreed not to pursue any further claims for damages or compensation against the Slovak state. He also pledged to withdraw complaints filed with the European Court of Human Rights and waived all financial claims related to the case. Ministry spokesperson Matej Neumann stated, “Andrej Babiš has agreed not to seek financial compensation, and he will also withdraw all pending complaints.” The ministry chose to settle after evaluating the legal and financial risks associated with continuing the lawsuit. Two external legal analyses commissioned by the Ministry of the Interior indicated a high likelihood of losing the case, which could have resulted in substantial...

 by Prague Morning Oct 21, 2024

Inflation Slows Down in the EU, but Rises in the Czech Republic

The inflation rate across the European Union decreased to 2.1 percent in September, down from 2.4 percent in August, according to a report released by the Eurostat statistical office. In contrast, inflation in the Czech Republic has increased, rising from 2.4 percent in August to 2.8 percent. It’s important to note that Eurostat utilizes a calculation methodology that is harmonized with EU standards, which differs from the approach taken by the Czech Statistical Office (ČSÚ). In the Eurozone, the inflation rate fell to 1.7 percent in September from 2.2 percent in August. This revised figure is lower than the initial estimate of 1.8 percent for September inflation in euro-using countries. Last September, the inflation rates were significantly higher: 4.9 percent in the EU and 4.3 percent in the Eurozone, while the Czech Republic recorded an inflation rate of 8.3 percent. Ireland reported the lowest inflation rate this September, registering at zero percent. Following closely were Lithuania with 0.4 percent, and both Slovenia and Italy at 0.7 percent. On the other hand, Romania faced the highest inflation rate at 4.8 percent, trailed by Belgium at 4.3 percent and Poland at 4.2 percent. When compared to August, annual inflation decreased in twenty...

 by Prague Morning Oct 20, 2024

American Expats in Prague: Navigating Political Echo Chambers Ahead of 2024 Election

American expats in the Czech Republic are navigating a complex political landscape as the 2024 U.S. election looms near. Their unique position—balancing American identity with local influences—shapes their political views and engagement. However, this blending of cultures can lead to the formation of echo chambers that may distort their understanding of the broader political climate back home. Here are some key considerations for American expats in Prague and the Czech Republic as they prepare for the upcoming election. The Formation of Echo Chambers An echo chamber refers to an environment where individuals primarily encounter information that confirms their existing views. For American expats in Prague, this dynamic can be particularly pronounced due to the liberal leanings of their social and political surroundings. The dominant left-leaning perspectives prevalent among expats in Prague and the local media can create a skewed narrative, obscuring the diverse and polarized political landscape of the U.S. This environment may lead expats to overlook critical viewpoints from conservative Americans and those with differing ideologies. This bias could unintentionally limit their understanding of the electoral dynamics at play back home. Voting Behaviour and Low Turnout When it comes to voting habits, U.S. citizens living abroad tend to lean...

 by Victoria Kiper Oct 20, 2024

Czech Republic Appoints Ambassador to Russia After Over Two Years Hiatus

Veteran diplomat and former Deputy Defense Minister Daniel Koštoval has been appointed and is expected to take up his responsibilities in early 2025, says Czech Foreign Minister Jan Lipavsky. Daniel Koštoval, a veteran diplomat and former deputy defense minister, has been appointed for the diplomatic post and is expected to take up his responsibilities in early 2025, Czech Minister of Foreign Affairs Jan Lipavsky said in a statement. “I wish the ambassador much strength in this challenging mission to advance Czech interests,” Lipavsky said, noting that the country’s key strategic allies, the UK, France, Germany, Poland, and US, all have ambassadors in Russia. Diplomatic relations between Moscow and Prague deteriorated in 2021 when the Czech Republic accused Russia of being responsible for a series of explosions at Czech munition warehouses in Vrbetice in 2014. In response, both countries reduced the number of diplomatic staff stationed at their respective embassies. Earlier, President Petr Pavel said it is in Czech interest to have diplomatic representation in Moscow at the ambassador level in the backdrop of Russia’s invasion of Ukraine. Tensions between the Czech Republic and Russia have intensified in recent years, owing primarily to an espionage scandal and Russia’s armed conflict with...

 by Prague Morning Oct 16, 2024

Top Jobs in the Czech Republic: See Which Careers Pay the Best

Ever wondered if it’s time to switch to a better-paying job? This overview might help you find the position of your dreams. In the Czech Republic, air traffic controllers hold the crown for the highest salaries. With the heavy burden of responsibility, they also enjoy substantial rewards, earning an average of 215,000 CZK per month. By contrast, a courier can expect to earn less than a tenth of that amount. For a full breakdown, including over 300 different occupations, you can view the detailed infographic on Aktuálně. Occupation: air traffic controller median salary in 2023: CZK 215,091 median salary in 2013: CZK 154,203 Occupation: electrical engineers of air traffic control median salary in 2023: CZK 153,742 median salary in 2013: CZK 96,548 Occupation: managers in the field of financial and insurance services median salary in 2023: CZK 121,127 median salary in 2013: CZK 73,127 Occupation: managers in the field of ICT median salary in 2023: CZK 120,368 median salary in 2013: CZK 60,425 Occupation: managers in the field of strategy and policy of organizations median salary in 2023: CZK 108,411 median salary in 2013: CZK 60,744 Occupation: pilots, navigators and flight technicians median salary in 2023: CZK 104,242 median salary...

 by Prague Morning Oct 15, 2024

Czech Government Plans Coal Phase-Out by 2033 and Oil and Gas by 2050

The Czech government has approved a draft revised National Energy and Climate Plan (NECP), which aims to phase out coal by 2033 and oil and gas by 2050. Under the plan, nuclear resources will be strengthened, mainly through the construction of new reactors, while the share of renewables will be increased to 40% by 2030 and to 60% in the next decade. The government also plans to increase the share of renewable energy sources from 15% to 30% by 2030. “The plan presents an outlook for the development of the energy sector until 2030. By then, electricity consumption will increase by around one-tenth compared to today. On the other hand, we foresee a significant drop in energy consumption and a reduction in coal-fired electricity generation,” Czech Energy and Trade Minister Jozef Síkela said on Wednesday. “We will also stop exporting brown coal electricity, the production of which will no longer be profitable due to the price of emission permits,” he added. In 2022, Czechia’s coal and nuclear power plants made it one of the world’s leading electricity exporters. However, the country is ready to lose this status and become an importer of clean energy from EU partners. “This will be...

 by Prague Morning Oct 12, 2024

Government Wants to Make Czechia One of the 10 Strongest Economies in Europe

The Czech government has unveiled an ambitious plan to place the country among the top ten European Union nations by gross domestic product (GDP) per capita by 2040. Currently ranked 14th, the Czech Republic aims for significant economic growth through the recently approved Economic Strategy. Key Pillars of the Strategy The strategy, presented by the new Minister of Industry and Trade Lukáš Vlček (STAN), focuses on four main areas: human capital development, strategic infrastructure, high-value industrialization, and enhanced financing options. “This strategy will not be another unfulfilled document,” Vlček assured. The plan emphasizes the importance of education, particularly in STEM fields (science, technology, engineering, and mathematics), which are critical for the country’s future economic growth. The government also seeks to strengthen ties between companies and educational institutions to create innovative study programs that better align with market needs. In terms of infrastructure, the strategy outlines improvements in transport, energy, and digital infrastructure. These upgrades will be coupled with investments in sustainable energy and technological innovation to boost competitiveness and reduce environmental impact. The plan also highlights the need to develop the capital market to improve companies’ access to financing, reducing their reliance on traditional bank loans. “This includes venture capital...

 by Prague Morning Oct 11, 2024

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

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