Politics & Economics

Czech-Slovak Split Over Ukraine grows as Prague ‘Postpones’ Consultations

Slovak Prime Minister Robert Fico on March 6 accused Prague of “endangering” Czech-Slovak relations by “supporting the war in Ukraine” while Bratislava “talks about peace.” Fico made the statement in reaction to Czech Prime Minister Petr Fiala’s decision to postpone consultations between the two countries that were planned for April. Fiala justified this by “different opinions on key foreign policy issues.” “We acknowledge that the Czech government decided to endanger (our relations) because it wants to support the war in Ukraine, while the Slovak government openly talks about peace,” Fico said in a video published on his official Facebook page. Initially supporting Ukraine on military and political levels, Slovakia’s foreign policy took a sharp turn after populist leader Fico won the parliamentary elections last September while running on a Ukraine-skeptic platform. Under Fico’s leadership, Bratislava’s foreign policy took a more amicable position toward Russia, mirroring the stances of Hungarian Prime Minister Viktor Orban while growing further apart from other partners like Czechia. “Our partners on the other side of the world understand that Europe’s security affects the security of the whole world, which is why I’m sorry that our Slovak colleagues don’t share this perspective,” Czech Foreign Minister Jan Lipavsky...

by Prague Morning Mar 07, 2024

Czech Parliament Passes Gun Control Bill

The Czech Parliament’s upper house, the Senate followed the lower house on Wednesday to approve changes in the gun law that tighten requirements for owning a weapon following the worst mass killing in the nation’s history. The legislation now must be signed by President Petr Pavel before becoming law, which is expected. On Dec. 22, a lone shooter killed 14 people and wounded dozens before killing himself at a Charles University building in downtown Prague. The assailant was a 24-year-old student who had a proclivity for firearms and a license to own eight guns, including two long guns. Authorities said he had no criminal record and therefore did not attract the attention of the authorities. The lower house gave the green light to the new law on Jan 26. Under the new law, gun owners would have to undergo a medical check every five years, not every 10 years, as they do now. Businesses would be required to report suspicious purchases of guns and ammunition to the police, while doctors would gain access to databases to find out if their patients are gun owners. Parliamentary debate on the legislation had already begun before that shooting. Interior Minister Vit Rakusan said...

by Kathy Zabinski Mar 07, 2024

Czech and French Leaders Pledge Support for Ukraine

French President Emmanuel Macron and his Czech counterpart Petr Pavel agree to send support to Ukraine, but rule out sending combat troups. The Czech and French presidents said Tuesday their countries remain united in their support of Ukraine’s fight against Russian aggression and are ready to look for new ways of helping the Ukrainians succeed. “We agree that the only option for us is to continue supporting Ukraine,” Czech President Petr Pavel said. “We’ve agreed that Europe has to play a bigger role in helping Ukraine.” Pavel said that all options had to be considered but ruled out deploying combat troops in Ukraine, an idea French President Emmanuel Macron floated last week, prompting an outcry from other European leaders. Later, French officials sought to clarify Macron’s remarks and tamp down criticism while insisting on the need to send a clear signal to Russia that it cannot win in Ukraine. “We haven’t talked about it at all,” Pavel said. “We’re talking about various forms of assistance.” He suggested the training of Ukrainian soldiers may take place in their home country despite the ongoing conflict. “Russia must not win the war,” Macron said in Prague. “We must all be aware that this...

by Prague Morning Mar 06, 2024

Czechs Face Continued Decline in Real Wages

Despite an increase in the average wage in the Czech Republic at the end of last year, consumer prices rose even more in the fourth quarter of 2023, resulting in a continued decline in real wages for the ninth consecutive quarter, Novinky.cz writes. Analysts warn that wages are failing to keep up with inflation with data from the Czech Statistical Office (ČSÚ) expected to shed more light on the situation next week. Jakub Seidler, chief economist of the Czech Banking Association, noted that year-on-year growth in wages slowed down in the fourth quarter of 2023 to 6.5 percent from 7.4 percent in the previous quarter. While wages saw rapid growth in certain sectors, such as real estate activities, others, like agriculture, experienced minimal growth, exacerbating the overall decline in real wages. Vít Hradil, chief economist at Cyrrus, estimates that nominal wage growth reached 6.6 percent for the entire economy, falling short of covering inflation, leading to a 0.9 percent decrease in real wages year-on-year. This trend of declining real wages has persisted for the second consecutive year, with Martin Gürtler, an analyst at Komerční banka, highlighting a significant decrease in purchasing power over the past two years. Looking ahead, analysts...

by Prague Morning Mar 05, 2024

Czech Republic’s Economy Now Ranked 14th in the EU

The Czech Republic’s economic standing within the European Union (EU) has weakened for the second consecutive year, according to the 2024 Prosperity and Financial Health Index. Compiled by Česká spořitelna and Europe in Data, the index reveals the Czech Republic now holds the 14th position, down from 12th in 2023 and 9th in 2022. While the Czech Republic boasts a diverse and complex industrial landscape, its economic performance is hampered by two key factors: low value added and persistently high inflation. The country recorded the second-highest inflation rate in the EU at 12%, surpassed only by Hungary at 17%. Food prices have emerged as a particular area of concern. Analyst Tereza Hrtúsová from Česká spořitelna points out that although the Czech Republic remains below the EU average price level for the overall consumer basket, the cost of essential items has risen significantly. Food prices have practically reached 97% of the EU average, with some items like sugar experiencing a year-on-year increase of nearly 40%. However, not all food prices have increased. Butter has seen the most significant price drop at 13%, followed by E-type cheese at 6%. On a more positive note, the Czech Republic regained its second-place position in...

by Prague Morning Feb 29, 2024

“Czechia Not Considering Sending Troops to Ukraine,” Said PM Fiala

Czech Republic and Poland on Tuesday said they are not considering sending troops to Ukraine after that option for European nations was mentioned at a meeting in Paris, but they agreed to cooperate on buying more ammunition for Kyiv. French President Emmanuel Macron raised the possibility on Monday of European countries sending soldiers to Ukraine, saying “nothing should be excluded”. Macron said, though, there was no consensus at this stage, while allies agreed to increase efforts to supply more munitions to Kyiv as its fight against Russia’s invasion enters a third year. The Kremlin warned on Tuesday that conflict between Russia and the U.S.-led NATO military alliance would be inevitable if European members of NATO sent troops to fight in Ukraine. Asked about Macron’s comments, Czech Prime Minister Petr Fiala and his Polish counterpart Donald Tusk said the option of troops was not being considered by their governments. “I am convinced that we should develop the paths of support that we embarked on after Russia’s aggression,” Fiala told a news conference alongside Tusk as they met in Prague on Tuesday. “I believe we do not need to open some other methods or ways,” Fiala said. Tusk added: “Poland does not...

by Prague Morning Feb 28, 2024

Former US President Bill Clinton to Visit Prague in March

Former US President Bill Clinton will head to Prague in March to deliver the keynote address at a conference marking the 25th anniversary of the Czech Republic’s membership in NATO. The “Our Security Is Not a Given” conference, organized by Jagello 2000, will take place on March 12th at Prague Castle’s Spanish Hall. Clinton, who served as US President from 1993 to 2001, is attending at the invitation of Czech President Petr Pavel. The organizers highlighted how, early in his presidency, Clinton proposed a vision of a united, democratic Europe free from conflict. “Inviting Central and Eastern European democracies into NATO was a key part of this vision,” they said, “and the 1999 expansion that included the Czech Republic, Poland, and Hungary was a historic step towards its realization.” This year’s conference, the 11th edition, will not only assess the Czech Republic’s quarter-century in NATO but also discuss the alliance’s future amidst a rapidly changing security landscape. On April 4th, NATO celebrates its 75th anniversary. Joining Clinton at Prague Castle will be Czech President Petr Pavel, Prime Minister Petr Fiala, Defense Minister Jana Černochová, and Foreign Minister Jan Lipavský. The panel discussion will also feature representatives from the opposition ANO...

by Cara Stevenson Feb 23, 2024

Prague is Now the Fourth Richest Region in the European Union

Prague is now the fourth richest region in the European Union by GDP per capita, ahead of cities like Brussels, Paris, and Berlin. “Prague holds the number four spot in the EU regional ranking for 2022, based on GDP per capita,” confirmed Petr Dufek, chief economist at Bank Creditas. While two Irish regions and Luxembourg currently hold the top positions, Dufek highlighted the stark contrast between Prague’s prosperity and the rest of the Czech Republic, with the capital boasting more than double the national GDP per capita. “Prague’s success stems in part from hosting the headquarters of many major companies,” explained Dufek. However, a concerning disparity is emerging within the country. “Over the past nine years, GDP per capita has grown significantly faster in Prague than in other regions, widening the gap,” he noted. For further perspective, Dufek compared Prague to its neighbor, Berlin. “In terms of purchasing power parity, Berlin’s GDP per capita is only 60% of Prague’s, while Germany as a whole remains 30% wealthier than the Czech Republic.” Bratislava “In 2013, Bratislava surpassed Prague,” Dufek revealed. “But the latest data paints a different picture, with Bratislava now trailing at 71% of Prague’s level. Its GDP per capita...

by Shannon Stack Feb 21, 2024

Czechia Backs “Humanitarian Pause” in Gaza, Only Hungary Against

EU countries, except Hungary, on Monday called for an “immediate humanitarian pause that would lead to a sustainable ceasefire” in the Gaza war, the bloc’s foreign policy chief Josep Borrell said. The European Union has struggled for a united response on Israel’s military operation following the October 7 attack by Hamas. “The joint statement addresses the humanitarian crisis in Gaza and the potential repercussions of the planned military operation in Rafah. On behalf of the Czech Republic, I believe it is critical to underscore international humanitarian law and acknowledge the State of Israel’s right to self-defense,” stated Czech Minister Jan Lipavský, adding that this represents “a comprehensive perspective encompassing the diverse positions within Europe.” On Monday, the ministers also deliberated on further sanctions against the Hamas terrorist organization and radical Jewish settlers. Lipavský reiterated the Czech stance, emphasizing that Prague has no objections to the sanctions package itself; however, they oppose linking the two groups, rejecting “any attempt to draw an equivalence between Hamas terrorists and extremist political activists.” “I believe everyone clearly understood this position,” the Czech minister added, “but then another member state intervened and blocked the entire sanctions package, effectively ending the discussion for today.” He confirmed...

by Prague Morning Feb 20, 2024

Czech Inflation Eases to 2.3%, Lowest in 34 Months

The Czech Republic’s consumer price inflation eased more-than-expected in January to the lowest level in nearly three years, largely due to a sharp slowdown in utility costs along with a continued fall in food costs, data from the Czech Statistical Office shows. Consumer prices climbed 2.3 percent year-over-year in January, much slower than the 6.9 percent rise in December. Meanwhile, economists had expected inflation to slow to 2.9 percent. Further, this was the weakest inflation since March 2021, the agency said. The annual price growth in utilities eased markedly to 3.1 percent in January from 16.8 percent in December. The decline in prices of food and non-alcoholic beverages deepened to 3.9 percent from 0.3 percent. Meanwhile, transport charges rebounded 0.4 percent after a 0.2 percent drop seen in December. On a monthly basis, consumer prices rose 1.5 percent in January, versus an expected increase of 2.0 percent. The monthly upturn was mainly attributed to higher utility costs, especially electricity charges.

by Melissa Santoyo Feb 19, 2024

Czechia Could Send 800,000 Ammunition Units to Ukraine

The Czech Defence Ministry and local industry have identified 800,000 units of available ammunition that could be delivered to Ukraine within weeks, if funding are secured. Ukraine desperately needs artillery ammunition to fend off Russian forces. Although the EU has promised to deliver one million rounds by March, it failed due to low production capacity. The Czech Republic is, therefore, exploring the possibility of buying ammunition from outside the EU. “Our Defence Ministry and our companies in the defence industry, through their contacts, have an overview of where equipment and ammunition are available,” Pavel said during a press briefing in Munich, where he attended the Munich Security Conference. According to Pavel, the Czechs have identified a significant amount of 155mm NATO-standard artillery shells and the 122mm calibre often used in the former Soviet Union. “As far as I know, our companies have identified, variously around the world, up to 500,000 NATO 155mm calibre rounds and up to 300,000 122 mm calibre rounds,” Pavel said. “In cooperation with our partners, mainly from Denmark, the Netherlands and Canada, we are raising the financial resources to cover the transaction. And then we will transport the equipment and ammunition to Ukraine through our resources,”...

by Melissa Santoyo Feb 19, 2024

French President Macron to Visit Czech Republic on March 5th

French President Emmanuel Macron will visit the Czech Republic on Tuesday, March 5th. This was reported today by Czech Television and confirmed by the Czech ambassador in Paris, Michel Fleischmann. This upcoming visit marks Macron’s third official trip to the Czech Republic since 2018. His most recent visit took place in October 2022, when he attended the European Political Community’s Prime Ministerial Summit and the subsequent informal European Council Summit at Prague Castle. In October 2018, he commemorated the 100th anniversary of the founding of the Republic with a visit to the country. Last December, President Pavel met with Macron at the Elysee Palace in Paris. Following the meeting, President Pavel remarked on the close ties between the Czech Republic and France, highlighting their shared positions on issues like the war in Ukraine, the Middle East situation, energy security, and EU enlargement. Macron’s upcoming visit underscores the ongoing diplomatic cooperation between the two nations.

by Prague Morning Feb 16, 2024

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