AGP Executive Report

Public Transport Investment: Prague has approved CZK 1.2bn for 29 additional Škoda 52T trams, with deliveries and commissioning planned from Sep 2026 to Feb 2027; EU Modernisation Fund support covers CZK 40m per vehicle. Labour Market Policy: Labour minister Aleš Juchelka defended a government plan to cut unemployment benefits, proposing a drop in the first two months from 80% of previous earnings/assessment base to 65% from January, with the maximum capped at 60% of average wage. Regional EU Coordination: V4 leaders (Czechia, Hungary, Poland, Slovakia) agreed in Bratislava to intensify coordination ahead of EU Council talks, focusing on the next long-term budget, CAP, regional disparities, defence costs, energy prices and stricter border protection. EU Trade Rules: The European Commission proposed a Public Procurement Act that would let public buyers exclude bids from suppliers in countries not covered by EU procurement agreements, a move widely seen as targeting China and framed as protectionist. Energy/Water Infrastructure: Czech and Kazakhstan representatives discussed modernising water supply, wastewater and treatment systems, including digital monitoring and sewer diagnostics, as Kazakhstan plans upgrades across thousands of kilometres of networks. Tech & Education: OpenSSL is funding six Australian university students to attend an OpenSSL Conference in Prague, supporting cryptography and open-source work. Local Business & Tourism: Brno’s “Green Planet: National Aquarium” project is set to bring a large aquarium with a 55-metre underwater tunnel after 2028, with an investment framework of at least CZK 700m.

Prague Climate Week: Prague will host Central Europe’s first Climate Week from Sept. 14–20, with 50+ events bringing together cities, researchers, finance and business on adaptation, energy, construction, transport and water management. Energy Costs: Fuel prices climbed across Europe as oil pushed above $100 on Middle East supply fears, with Italy and France reporting higher petrol and diesel averages. Czech Tech & Quantum: IQM outlined a three-step upgrade path for LUMI-IQ, Europe’s first superconducting quantum computer with logical qubits, involving Czechia in the EuroHPC-backed effort. EU Politics: EU foreign policy chief Kaja Kallas backed an EU-wide trade ban on goods from illegal Israeli settlements, arguing it needs majority support rather than unanimity. Prague Transport: Petřín Funicular is set to resume operations on Sept. 22 after a two-year reconstruction. Aviation/Business: Vodafone Czechia and Mobil Pohotovost opened a joint service centre in Prague.

Aviation & Tourism: Vietjet kicked off a three-day 9.9 sale with Eco fares from US$90 one-way (taxes included) and 22% off Deluxe international fares using code SALE99, running 7–10 Sept for travel from 10 Sept 2026 to 31 Mar 2027 (blackouts apply). Real Estate & Hospitality: Prague’s 416-room Prague Marriott was sold for about EUR200m as part of the Millennium Plaza mixed-use project; the hotel will keep operating under a long-term management deal with Marriott. Tech & Industry: IQM Quantum Computers will upgrade the LUMI-IQ system at the LUMI AI Factory in Finland, with Czechia among participating countries, targeting logical-qubit fault-tolerant quantum computing via staged H4 (2027), H5 (2029) upgrades. EU Housing Policy: The European Commission proposed an Affordable Housing Act to curb short-term rentals and vacant homes, aiming to give cities more legal certainty to protect long-term housing supply. Energy Context: A new charted overview shows Europe’s electricity still relies heavily on fossil fuels overall, with major differences by country. Global Connectivity: India endorsed the 6G Leadership and Security Call to Action, listing Czechia among participating governments.

Nuclear Energy & Security: ČEZ has received approval from the Czech nuclear regulator (SÚJB) to load new Westinghouse nuclear fuel assemblies into Temelín Unit 1 during the planned end-2026 shutdown, a step aimed at strengthening energy security and diversifying suppliers. EU Housing Rules: The European Commission unveiled an affordable-housing plan that lets cities restrict Airbnb-style short-term rentals in “housing stress” areas, with measures required to be targeted, necessary and proportionate—an issue already hitting Prague and other tourist cities. EU Funding Pressure on Agrofert: The European Commission suspended some subsidies linked to the Agrofert group, citing concerns that Czech Prime Minister Andrej Babiš has not fully severed ties despite a trust setup. Tech & Standards: India endorsed the G20 “Call to Action for 6G Leadership and Security,” joining Czechia and other countries in pushing open, interoperable and secure 6G development for rollout in the 2030s. Business & Finance: Prague-based STARTEEPO, a major Xerox shareholder, is urging a board-led strategic review of Xerox Financial Services, including possible sale or partnership, valuing the unit at $1.3–1.5bn. Environment & Crime Probe: Czech Environment Minister Igor Červený says hazardous chemicals have been leaking for at least three years at the Dobrá Voda site in Šumava National Park, and a criminal complaint is set to be filed.

Energy & Industry: ABB signed an MoU with Rolls-Royce SMR to explore how ABB’s automation, electrification and instrumentation can help scale small modular reactor projects, with Rolls-Royce already working on UK sites and also engaging ČEZ for potential Temelín deployments. Transport & Cities: Prague will add 51 new trams next year, ordering 25 more Škoda 52T vehicles (CZK 82.5m each, incl. EU subsidies), as the network expands and older rolling stock is replaced. Housing & Finance: Czech mortgage rates climbed to 5.51% in September (Swiss Life Hypoindex), up from 4.89% in March—raising monthly costs for a typical CZK 3.5m, 25-year loan. Labour Market (Prague): Unemployment in Prague edged up to 4% at end-August, with 40,509 registered job seekers and 22,519 vacancies. EU Policy / Agriculture: The European Commission withheld about €3.18m in Agrofert-related reimbursements after renewed concerns over the Babiš trust setup. Business & Trade: Škoda and JSW Green Mobility opened talks on a non-binding India JV to build and sell passenger vehicles for the local market and exports across powertrains. Courts (Czechia): The Supreme Court in Prague increased a sentence for a Czech man who fought in Donbas on Russia’s side to 3.5 years in prison.

Public Transport Upgrade: Prague will add 51 new trams next year, with Škoda 52T deliveries continuing under a framework order worth CZK 82.5m per tram (including EU subsidies), as the city expands lines and renews older fleets. Crypto Regulation Shock: Poland failed to override President Nawrocki’s veto on a crypto licensing bill, leaving the country as the only EU state without a working MiCA framework and pushing about 2,000 firms into a regulatory limbo. Aviation Growth: Wizz Air plans to base a fourth aircraft in Armenia and add new routes, including more frequent services to Prague, as it targets close to 100m passengers annually. EU Energy Watch: Solar installations in the EU rose to 33.8 GW in H1 2026, but SolarPower Europe warns policy support is weakening and the bloc risks missing 2030 targets. Defense & Tech: NATO advanced a Czech, Polish and Ukrainian set of airfield-denial solutions, including an autonomous targeting AI from Ukraine, into its combat validation pipeline. Central Banking & Gold: China’s central bank bought 20.2 tonnes of gold in August, the biggest monthly increase since 2023, underscoring continued sovereign demand.

Prague Housing Boom: Central Group is restarting construction of more than 2,000 flats across seven districts after earlier delays tied to higher building costs, with the projects valued at about CZK 17bn and the biggest batch in Žižkov. EU State Aid for Culture & Sport: The European Commission approved €53m in Czech state aid for a Brno multifunctional hall to cover procurement-driven cost increases so the project can continue. Defense Industry Watch: Czech ammunition maker STV Group says it warned its government about Indian firm Datasel, calling it a fraud after STV received only 10% of ordered goods and is preparing court action; separately, a NATO airfield denial contest named a Czech company (LPP Holding) as first-place winner. AI & Industry Cooperation: V4 lawmakers (Czechia, Hungary, Poland, Slovakia) backed closer integration of industry, energy and AI to boost productivity, skills and resilient infrastructure. Education Budget Pressure: The Czech government is considering cutting subsidies for private and church schools to save billions in the Education Ministry budget. Tech/Business Finance: Capital B, a Paris-listed bitcoin treasury firm, bought 376 BTC for €25.3m, its biggest single purchase in a year.

EU Agrofert Probe: The European Commission has temporarily withheld €3.18m in Czech farm-subsidy reimbursements tied to Agrofert, citing an ongoing conflict-of-interest review after Prime Minister Andrej Babiš moved Agrofert shares to the RSVP Trust; the hold can last up to six months (extendable by three) and is not a final eligibility ruling. NATO Tech for Ukraine: Czech firm LPP Holding won first place in NATO’s “Persistent Airfield Denial” innovation competition, with Poland taking second and a Ukrainian team third, focusing on autonomy, scaling, and resilience in electronic-warfare conditions. Czech Security Outlook: The BIS annual report warns Russia is intensifying intelligence, cyber and influence operations while China targets information and strategic know-how; it stresses risks to Czech institutions, critical infrastructure, industry and the information space. Czech Defence Modernisation: Czech Air Force leadership says the biggest challenge is people and how the system is managed, as the service modernises for F-35, new air defence and broader multi-domain operations. EV Battery Market Move: AVILOO’s battery warranty expands to the Czech Republic from 7 September, aiming to boost confidence in used EV battery health via a digital warranty workflow. Prague Transport: Prague’s National Museum tram line is completed ahead of schedule. Sports & Business Tie-in: Czechia is drawn in Spain’s 2026/27 UEFA Nations League group, with matches including Czechia vs Spain in Prague.

Czech-Poland AI push: Poland and Czechia signed an AI cooperation pact at the CEE AI Summit in Prague, aiming to boost Central Europe’s competitiveness and speed up digital transformation. Telecom retail tie-up: Vodafone Czech Republic and Mobil Pohotovost opened a joint service centre in Prague, combining sales and repair services under one roof. Defense industry know-how: Czech Defense Minister Jaromír Zuna told South Korean firms they must build local manufacturing and tech partnerships in Europe to win contracts, citing Poland’s approach with Hyundai Rotem. Armenia-Czech transport links: Armenia is negotiating with Czech counterparts on equipment for a new Yerevan metro station, while also discussing Czech help for spent fuel storage. Rail decarbonisation trial: Czech Railways began testing fully biogenic HVO fuel in regular RegioFox passenger services on routes in Central Bohemia. EU security after war: Poland, Germany and Czechia are jointly preparing an analysis of post-war security threats tied to the return of Ukrainian veterans.

Czech Defence Watch: Czech Television says the arms boom is paying off: the Defence Ministry signed 122bn crowns in arms contracts last year, and about 33bn crowns in the first eight months of this year, with most deals going to domestic firms; exports of weapons, ammunition and related technologies topped 115bn crowns last year for the fourth straight record year. Central Banking & Gold: The World Gold Council reports central banks bought 23 tonnes of gold in July and about 130 tonnes in the first seven months; the Czech National Bank added 2 tonnes in July, extending a 41-month buying streak. Prague Urban Life: Prague’s Vltava embankments will get 25 new solid-oak seating groups (70 elements total), replacing 21 worn benches, with work due to finish by mid-October. Church & Trust: Prague Archbishop Stanislav Přibyl says public trust in the Catholic Church has been seriously damaged by recent moral and financial misconduct allegations, calling for a penitential pilgrimage on Oct 5. Housing Rules in the EU: Brussels is preparing tougher limits on short-term holiday rentals as Croatia tightens tourist apartment rules, aiming to ease housing pressure.

Czech Defence Boom: Czech Television says the Defence Ministry signed 122bn crowns in arms contracts last year and about 33bn crowns in the first eight months of this year, with most money going to domestic firms; exports of weapons and related tech topped 115bn crowns last year for a fourth straight record. Skoda Connected Services: Skoda says it is “closer” to launching connected services in Australia but won’t roll them out this year, after Volkswagen Australia relied on a third-party Goconnect app instead of factory systems. Czech-Armenian Rail Talks: Armenia wants to expand cooperation with Czechia on urban rail transport, including consulting and Czech company participation, as officials also discussed aviation and road links. West Ham Ownership Watch: Daniel Kretinsky has agreed to raise his West Ham stake from 27% to 46%, reshaping the club’s control and the board-seat fight with Amanda Staveley. AI Policy in the EU: A European Commission cloud-and-AI law draft is drawing scrutiny over who gets lead drafting authority, with implications for EU data-center and cloud rules. Czech Business Tech: O2 Czechia updates management and adds an AI director, signaling more in-house AI focus.

Household Finance Snapshot: Sweden leads global net household saving at 16%, with Czechia close behind at 13.7% (Hungary 14.3%); major economies like the US (4.9%) and UK (4.7%) save far less, while South Africa and New Zealand even post negative saving rates. Czech Budget Politics: A Median flash poll finds 62% of Czechs reject the proposed 389bn-crown state budget deficit; coalition talks on possible cuts continue, with Finance Minister Alena Schillerová saying only a few billion crowns are realistically on the table. Armenia–Czech Business Links: Armenia and Czech officials highlight cooperation in high tech, AI, water management, trade and tourism, with bilateral trade up 22.6% to $28.6m in the first half of 2026; Armenia also wants Czech help on urban rail. Cybersecurity: New Panzer ransomware lists 16 alleged victims across 11 countries, including the Czech Republic, combining data theft with file encryption. AI & Cloud Regulation: The EU’s Cloud and AI Development Act is moving through a politically sensitive drafting process, while DeepSeek’s reported 160,000-chip order underscores the split between AI inference and training supply chains. Industry & Trade: Czech-related supply chains show up indirectly as Canadian wool producers reroute shipments to the Czech Republic amid US tariff pressure. Transport & Infrastructure: Prague’s National Museum tram line is reported completed ahead of schedule, adding to city mobility upgrades.

Armenia–Czech Economic Links: Armenia’s deputy foreign minister Vahan Kostanyan met Czech Deputy FM Jiří Brodský to map cooperation in high tech, AI, water management, trade and tourism, with both sides pointing to a 22.6% rise in bilateral trade to $28.6m. Transport & Aviation: Armenia also pressed Czech expertise for urban rail, with talks covering aviation, rail and road; Wizz Air already runs Yerevan–Prague flights three times weekly. Prague on Screen: Netflix has started filming in Prague its untitled Dan Brown adaptation starring Morgan Spector as Robert Langdon and Rebecca Hall, with additional cast announced. Prague Mobility Upgrade: Prague’s National Museum tram line is back in service almost six months early, restoring lines 11 and 13 via Muzeum. Crypto Security Watch: Prague-based hardware wallet maker Trezor says a breach is worse than first reported, adding 67,000 more U.S. customers exposed via fulfillment partner ShipMonk. Czech Business Abroad: Daniel Kretinsky has agreed to become West Ham’s largest shareholder, lifting his stake to 46%.

Czech Business Spotlight: Daniel Kretinsky has agreed to become the largest shareholder of West Ham, raising his stake to 46% after a deal with other shareholders; David Sullivan is set to hold 40% and Tripp Smith 11%, ending Amanda Staveley’s immediate bid and giving the club ownership “certainty” ahead of its push back to the Premier League. Digital Health: Czechia has rolled out a redesigned EZKarta app, expanding it from a vaccination certificate into a broader digital health overview with preventive checks, lab results and selected shared-record data. Tech & Industry: NASENI says it is moving to commercialise locally developed technologies, aiming to turn research into products, factories, businesses and jobs. Energy & Manufacturing: Skoda Peaq claims a production EV range record after a supervised 936km trip across Europe without recharging, using economy driving and a selected route. Space Watch: ESA has agreed with ispace-Europe on MAGPIE, Europe’s first lunar polar ice exploration rover mission, with Czech Republic participation in the consortium. Security & Crypto: Trezor, backed by Czech Republic-based SatoshiLabs, disclosed a major hardware-wallet breach affecting about 80,000 users in total, with additional US customers exposed via a shipping-provider incident.

Czech Budget Watch: Finance Minister Alena Schillerová presented next year’s draft state budget, with a deficit of nearly 400bn crowns—already drawing pushback from President Petr Pavel, opposition parties and even within the ruling coalition, as talks continue over where savings could come from. Czech-Armenia Economic Pivot: President Petr Pavel said Prague will back Armenia in cutting dependence on Russia, pointing to EU tariff relief for Armenian goods and potential cooperation in energy, AI, cybersecurity and security. Regional AI Push: Nine Central and Eastern European countries signed the Prague AI Declaration to coordinate EU AI positions, connect computing capacities and exchange know-how, with Czech industry leadership calling for concrete projects. Hospitality & Travel Demand: Tourism data show July arrivals down 0.4% but tourism nights up 0.3%, with commercial accommodation gaining while private stays fell—useful context for Czech hoteliers. Tech/Legal: Alibaba filed complaints over “.ai” domains, with disputes handled via the Czech Arbitration Court, highlighting how brand protection is shifting in the AI domain era. Energy Security Angle: A solar policy debate argues Europe and the US should align supply-chain rules for inverters and components to protect security without undermining complementary strengths. Diplomatic Escalation: Russia said it will close German cultural centers, escalating a wider hybrid tensions row that also includes sabotage allegations around European defence sites.

Defense & Security: A new “European NATO” model is being discussed as the US reviews its force posture in Europe, with potential conventional drawdowns in Central and Eastern Europe and a shift toward European primary responsibility for conventional defense. Central Banking & Gold: Central banks bought 23 tonnes of gold in July, led by China (+20t) and Poland (+8t); the Czech National Bank added 2 tonnes for a 41st straight month of net buying, while Russia was the biggest net seller (6t). Czech Industry & Mobility: BMW’s Neue Klasse rollout will expand active safety assistance systems as standard across multiple model lines, including exit-warning features aimed at reducing “dooring” accidents. Energy Storage Deal: Czech tech firm Second Foundation signed an optimization floor agreement for a 140 MW Alytus BESS in Lithuania, targeting commissioning in 2027 with ~€60m investment. Volkswagen Restructuring: A confidential report seen by German media says Volkswagen is considering ending production at several German plants (Emden, Zwickau, Hanover, Neckarsulm) and shifting models to sites including Škoda’s Mladá Boleslav and Bratislava. Defense Tech (Czech): Tests of the Czech-made Narwhal 140 cruise missile (range over 600 km) are reported as completed, with serial production planned by LPP Holding. EU Labor Rules: The Netherlands published a list of 30 countries whose citizens can work without a permit, including Czechia.