AGP Executive Report

Energy and Industry: Czechia and its V4 partners urged the EU to make funds more flexible to help industry cope with high energy prices and to treat nuclear power equally with renewables. Foreign Policy: Prague rejected Finland’s proposal for tougher EU-wide visa rules for Russians, saying Czechia will keep its own stricter national policy. Foreign Minister Petr Macinka is due in Slovenia with a business delegation on October 20–21. Politics: Babiš’s party suffered a major setback in Senate elections, as the pro-Western opposition kept control of the upper house. Public Finances: The government has postponed a promised corporate tax cut, citing its CZK 30 billion annual cost, and is resuming talks with unions over public-sector pay rises. Health: An early delivery of 300,000 flu vaccine doses is expected to improve availability from next week. Traditions: Drought forced the cancellation of the public harvest at Rožmberk pond, with Třeboň fishermen instead hosting a smaller event; local ponds are holding less than half their usual water volume.

Politics: The pro-Western opposition kept control of the Senate after ANO failed to win any of the contested seats, dealing Prime Minister Andrej Babiš an early setback. President Petr Pavel says he paid €18,750 for private flights during his Morocco holiday and is due to meet German Chancellor Friedrich Merz in Berlin. Industry & Trade: Škoda Group has proposed a staged joint venture in Azerbaijan to build and service trains, with Baku as a possible rail hub for the Caucasus. Czech companies are also looking to join Ukraine’s reconstruction as exports to the country grow. Jobs: The government plans to raise quotas for Filipino workers as Czechia faces a shortage of more than 90,000 workers. Travel: Starlux has increased its Prague–Taipei service to four weekly flights, giving the route a daily nonstop option when combined with China Airlines. Local Business: Toyota’s Kolín factory will offer free public tours from November, showing visitors how cars are made.

Senate Elections: Prime Minister Andrej Babiš’s ANO party won no seats in the Senate run-off, while opposition parties made gains and kept control of the upper house. Presidential Affairs: Petr Pavel says he paid €18,750 for private flights during his Morocco holiday, including a return trip to vote; he is due to meet German Chancellor Friedrich Merz in Berlin next week. Labour Market: Czechia faces a shortage of more than 90,000 workers, and the government plans to raise quotas for Filipino recruits. Business and Ukraine: Czech companies are keen to join Ukraine’s reconstruction, with exports growing despite the lack of near-term prospects for a ceasefire. Travel and Industry: Starlux has added a fourth weekly Taipei–Prague flight, giving the route a daily nonstop option when combined with China Airlines’ services. Toyota’s Kolín plant will also open for free public tours from November.

Senate Setback: Prime Minister Andrej Babiš’s ANO party failed to win any of the 27 seats contested in Czech Senate run-offs, while opposition parties kept control of the upper house. Turnout was about 21%; the result is a blow to Babiš but is not expected to threaten his coalition. Security: A Czech military warning that Russia could launch a limited attack to test NATO’s unity has renewed attention to the alliance’s eastern flank. Business: Czech defence group CSG bought a 9.5% stake in Canada’s MDA Space for $434 million, expanding its presence in the space sector. Meanwhile, Czech producer-price inflation reached its highest level since April 2023. Trade and Transport: Škoda Group explored rail modernisation and industrial partnerships in India and Azerbaijan, seeking new export opportunities. Prague Culture: Signal Festival’s latest edition brought projection mapping and digital art to the capital, as its organisers build on the event with a year-round exhibition space.

Senate Election: Czechia’s pro-Western opposition kept control of the Senate, winning 22 of 27 seats up for grabs. Prime Minister Andrej Babiš’s ANO movement won none, dealing his coalition a setback in its first major election test since returning to power. Turnout was about 21%. EU Energy Debate: At a Brussels summit, Czechia joined other governments in seeking to delay the EU’s new carbon charges for heating and transport fuels until 2030. Leaders rejected another postponement but asked the European Commission to review the rules and their safeguards as energy costs rise. Business Expansion: Škoda Group is exploring rail and metro projects in India and Azerbaijan, including modernisation, signalling and maintenance. The talks were part of Czech business missions to both countries. Prague Culture: Signal Festival brought projection mapping and digital art to Prague for its 14th edition, while the event’s co-founder says its new permanent Signal Space is extending the festival’s presence year-round.

EU Summit: Prime Minister Andrej Babiš said Czechia may need to guard against migrants arriving from western Europe. He also opposed linking further EU aid for Ukraine to budget talks and backed delaying the bloc’s new carbon charges on heating and road fuels. Industry: A new automotive seating plant opened in Cheb after an investment of more than CZK 1 billion. It will make seats for BMW’s electric iX1. Civil Service: Parliament overrode President Petr Pavel’s veto of a law easing the dismissal of civil servants. What’s On: Maker Faire Brno runs this weekend, October 17–18. Prague’s Christmas markets begin November 20 at Náměstí Míru, with the Old Town and Wenceslas Square markets opening November 28.

EU Summit: Prime Minister Andrej Babiš backed delaying the EU’s planned carbon charges on heating and transport, warning that energy costs could hurt households and businesses. He also rejected a proposed €89 billion in EU budget support for Ukraine, saying Czechia would not guarantee the funding. Prices and Property: Czech industrial producer prices rose 3.7% year on year in September, the fastest increase since April 2023. Meanwhile, the competition authority approved PPF’s purchase of six Prague property companies and the Oaks Prague golf and housing project. Business: DHL plans to invest more than $447 million in Central and Eastern Europe by 2030, including Czechia, as it expands logistics capacity. Transport Links: Czech and Kazakh ministers signed a cooperation memorandum covering railways, transport technology and civil aviation.

Security: Czech army chief Miroslav Hlaváč warned Russia could launch a limited attack to test NATO unity, and said Czechia needs stronger air and counter-drone defences. EU Energy: At the Brussels summit, Czechia joined other Visegrád countries in seeking a delay to the EU’s planned carbon charges on heating and transport, citing the risk of higher household bills. Politics: Parliament overrode President Petr Pavel’s veto of a law making it easier to dismiss civil servants. Trade: Deputy Prime Minister Karel Havlíček held talks in India on expanding cooperation in manufacturing, technology and defence. Heritage: Two 355-metre radio towers at Liblice, once the country’s tallest structures, were demolished on Thursday; some residents had urged their preservation as engineering landmarks. Culture: Czech artists say new state funding rules could threaten freedom of expression.

Civil Service Reform: Parliament overrode President Petr Pavel’s veto of a law making it easier to dismiss civil servants, renewing concerns over changes to public-sector jobs. Arts Funding: Czech artists warn new state grant rules could threaten freedom of expression, as the Culture Ministry faces criticism over its policy and lack of consultation. Business and Defence: Deputy Prime Minister Karel Havlíček discussed industrial and defence cooperation with Indian officials, while Czechia and Azerbaijan explored closer economic, transport and logistics ties. Prague’s AI Sector: Canadian firm Cohere signed a letter of intent to buy cybersecurity startup AISLE, whose engineering hub is in Prague and whose founder is former Avast chief Ondřej Vlček. Security: A Chinese citizen has gone on trial in Prague on espionage charges, while Czechia confirmed a breach involving Signal accounts in five NATO countries. Election Fallout: Recent local and Senate votes delivered gains for Czech opposition parties, a setback for Andrej Babiš’s governing coalition.

Farm Support: Czech farmers can apply until Oct. 31 for emergency aid to offset higher fuel, energy and fertiliser costs linked to the Middle East crisis. The package includes CZK 264 million from an EU reserve, plus Czech funding. Civil Service Reform: Parliament overrode President Petr Pavel’s veto on changes making it easier to dismiss state employees. The law takes effect in November; critics warn it could expose the civil service to political pressure. Espionage Trial: A Chinese state-media correspondent accused of gathering intelligence for Beijing denied the charges at trial in Prague. Prosecutors allege he used his journalist role to collect and pass on political and economic information. Security: Czechia confirmed a breach involving Signal accounts as Russia was accused of compromising accounts in five NATO countries. Business and Travel: Defence group CSG bought a 9.5% stake in Canadian space company MDA, while new VietJet and Jazeera Airways routes are set to connect Prague with Hanoi and Kuwait. Elections: Opposition parties gained ground in recent municipal and Senate votes, while the governing coalition lost support in several contests.

Espionage Trial: A Chinese citizen has denied spying charges in Prague. Prosecutors say he used journalism as cover to gather political and economic intelligence; the trial is due to run through Friday. Defence Industry: Czech arms group CSG has bought a 9.5% stake in Canada’s MDA Space, worth about US$434 million, in its biggest move yet into the space sector. Foreign Ties: Czech and Indian officials agreed to expand defence-industry cooperation, including joint ventures. Tourism and Travel: Jazeera Airways plans twice-weekly winter flights from Kuwait to Prague, while Vietjet has launched a twice-weekly Hanoi–Almaty–Prague service. Business: Brno burger chain Pickle is planning up to seven Prague locations as it prepares to franchise. Fuel Prices: Czech senators have asked the Constitutional Court to overturn a law allowing the government to cap petrol and diesel prices, arguing it gives ministers too much power. Election Fallout: Opposition parties made gains in local and Senate votes, with Christian Democrats strong in local councils and STAN leading in Prague.

India Ties: Deputy Prime Minister Karel Havlíček’s visit to India brought agreements to deepen defence-industry cooperation, explore joint manufacturing and expand trade and investment. Space and Defence: Czech group CSG has become the largest shareholder in Canada’s MDA Space, taking a 9.5% stake and pointing to potential European manufacturing partnerships. Air Links: Vietjet has launched twice-weekly Hanoi–Almaty–Prague flights, opening its first route into the EU. Politics: Opposition parties made gains in Senate and municipal elections, delivering an early warning to Prime Minister Andrej Babiš’s governing coalition. Culture: The Culture Ministry is reviewing partnerships with major institutions and festivals, including Prague Spring, Janáček Brno and the Zlín Film Festival. Business: The EU approved Kimberly-Clark’s takeover of Kenvue on condition it divest feminine-hygiene brands, addressing competition concerns in Czechia and two other countries.

Defence and Trade: Czech Deputy Prime Minister Karel Havlíček’s visit to India ended with an agreement to expand defence industry cooperation, including joint ventures. Czech and Indian officials also see scope for closer business ties under an India-EU trade deal. Economy: The IMF cut its forecast for Czech growth in 2026 to 1.8%. ČEZ says it will challenge a Luxembourg court ruling in the Diag Human dispute, which it says will not affect customers or operations. Politics: Opposition parties made gains in Senate and municipal elections, challenging Prime Minister Andrej Babiš’s coalition. Christian Democrats led in councilor seats, while STAN came first in Prague. Culture and Health: Czech doctors may soon be able to recommend museum visits, singing and creative workshops to help prevent depression and social isolation. Cultural Policy: The Culture Ministry plans to review cooperation with major institutions, including the Karlovy Vary film festival and Prague Spring, to align support with the new state policy.

Election Results: Czech opposition parties made gains in Senate and local elections, delivering a warning to Prime Minister Andrej Babiš’s coalition. The Christian Democrats led among local council parties, while STAN topped Prague’s vote and the Pirates lost ground. India Partnership: Prague and New Delhi are exploring aircraft production in India, including 19-, 40- and 90-seat models for regional routes. Officials also discussed cooperation in defence, technology and trade. Azerbaijan Trade: A Czech-Azerbaijani business forum in Baku focused on transport and logistics links, including metro and tram projects. Bilateral trade has reached $760 million this year, while Czech investment in Azerbaijan stands at $74 million. Travel: Vietjet has launched twice-weekly Prague–Hanoi flights via Almaty, creating a new link between Czechia, Central Asia and Southeast Asia. EU Business: The European Commission is investigating XXXLutz’s proposed takeover of furniture retailer Porta, citing potential competition concerns in Czechia, Germany and Slovakia. Czechia has also urged the EU to ease packaging rules that could burden small exporters.

Politics: Czech opposition parties made gains in Senate and local elections, while ANO still won the largest share among national parties. Independent candidates and local groups dominated council seats, and ANO lost ground in Prague and other major cities. Trade: Czech and Indian business leaders say a proposed EU-India free-trade deal could ease barriers and open the way for joint ventures. In Baku, Czech officials called Azerbaijan a strategic partner, highlighting transport links and investment; Czech investments there total about $74 million. Workforce: The government wants to speed up hiring foreign workers as employers warn that complicated permits push people to jobs abroad. Forum 2000: President Petr Pavel warned that AI can enable manipulation and surveillance, urging democratic oversight at the Prague conference. Prague Life: RestaurantWeek returns on October 13, with seasonal menus at around 75 restaurants. Missing Tourist: Search teams in Scotland are looking for Czech national Zuzana Gabrisova, missing near John O’Groats since October 6.

Elections: Czech opposition parties made gains in local elections and the first round of Senate voting. The Christian Democrats led among national parties, while STAN topped Prague’s vote and began coalition talks. ANO still advanced 13 candidates to Senate runoffs, but opposition parties collectively sent more. Velká Pardubická: Irish trainer Gavin Cromwell won Czechia’s famous steeplechase for a second year running, this time with Final Orders. Prague Travel: Vietjet has launched direct flights between Prague and Hanoi, adding a new link between Czechia and Vietnam. City Life: Prague has scrapped taxi fare caps, reviving concerns about tourist scams. Industry: Ostravar plans to end beer production in Ostrava in 2027, a blow to the city’s brewing tradition.