AGP Executive Report

Rail & Infrastructure: Czech Rail’s competition watchdog ÚOHS cleared the last hurdle for electrification of line 181 (Nýřany–Heřmanova Huť), allowing Správa železnic to sign a contract at 63% of its ceiling price and add the digital signalling needed for full interoperability with the wider EU network. Energy & Climate: Drought is pushing Czech rivers to record lows, with the Elbe near historic minimums and the Vltava also hitting unprecedented lows in České Budějovice; the shrinking Orlík Reservoir has even exposed remains of a former hydro plant. Aviation Business: Atmospherica Aviation (Prague Václav Havel) ordered an Embraer Praetor 600E, targeting delivery in 2029 to expand its longer-range jet fleet. Corporate Finance: Electromed (New Prague, Minnesota) set Aug 25 for its fiscal Q4 2026 results and earnings call. EU Politics & Money: A German MEP says the EU’s €90bn interest-free Ukraine loan scheme lacks clarity on who ultimately bears the burden, pointing to exemptions including the Czech Republic.

Czech Energy & Storage: Czechia added 318 MWh of new battery capacity in H1 2026, up 83% year-on-year, as the Lex OZE III framework boosts interest but growth may be constrained by grid capacity and tariffs. Power Sector: ČEZ modernised the Kořensko hydropower plant and Vltava Cascade facilities, while CEZ raised its outlook again on the back of higher energy prices. Renewables Build-Out: Czechia installed 295 MW of solar in H1 2026, keeping momentum in clean power deployment. Defence Industry Deal: CSG and Dezamet signed an agreement worth over EUR 100 million for components for 155 mm artillery ammunition, with scope including pyrotechnic parts and fuze subassemblies. AI & Media Skills: The Institute of Documentary Film launched “Docs Beyond: Audience, Impact & AI,” selecting 12 Czech documentary teams to develop audience/impact strategies and practical, ethical generative AI use. Gaming & Publishing: Prague-based Steam Music signed composer Jolene Khor to a music publishing deal to expand her work across games, media and concerts. Sports & Talent Pipeline: Slavia Prague loaned Kenyan midfielder Timothy Ouma to Charlton Athletic with an option to buy, adding Czech-developed talent to the English Championship.

Defence Industry Deal: Czech ammunition maker CSG plans to ramp up large-calibre output to about 850,000 rounds in 2026 (up from 550,000 in 2025), with further growth to 1.1 million in 2027 as European demand—especially linked to Ukraine—stays high. EU Space Infrastructure: Prague has picked PORR to finish the Nová Palmovka Centre for the future headquarters of the EU Agency for the Space Programme (EUSPA), with a CZK 2.161bn contract and a tender reshuffle after a Czech competition authority decision. Ammunition Tech Transfer: Vijayan Trishul Defence Solutions (VTDS) in India signed a strategic technology pact with Czech firm DEUS Automation, aiming to boost small-calibre ammunition manufacturing capabilities. Public Health: Czechia is seeing a sharp Lyme disease surge, with 8,108 cases reported through end-July and July alone accounting for 2,792 infections. Housing & Social Services: A Czech housing crisis is leaving women with domestic-violence needs with limited shelter capacity, with regional gaps and women turned away due to bed shortages. Healthcare Access: A guide highlights how hard it can be to find a GP in Prague when practices aren’t accepting new patients, pushing people toward clearer insurer and provider options. Tourism Demand Signal: Croatia’s eVisitor data show a strong July for the country, with arrivals and overnight stays rising—important for Czech outbound travel patterns.

Defence & Industry: Cambridge Aerospace will showcase its UK-built Skyhammer low-cost counter-drone interceptor at Prague’s Future Forces (Oct 21–23), targeting Shahed-type drones with up to 30 km range and trials completed in Jordan after a UK MoD procurement contract. Prague Urban Development: Prague City Council has approved preparations for the CZK 1.93bn renovation of historic Kasárna Karlín, aiming to reopen the site as a mixed public/cultural hub with shops, services and possible student housing. Aviation & Travel: Emirates will temporarily suspend Airbus A380 flights to Prague and Glasgow (replacing with Boeing 777-300ER) through Sep 2026, with A380 service set to resume Oct 1. Energy & Nuclear: Slovakia’s Mochovce 4 reached criticality and minimum controlled output, moving into commissioning tests before power ramps. Business & Entertainment: Live Nation will take a 51% stake in a Prague venues joint venture with PPF (O2 Arena, O2 Universum, Forum Karlín), marking its biggest CEE investment to date. Health: Czechia reported a sharp Lyme disease rise—8,108 cases through end-July, with about 90 new cases per day in July. Automotive: Škoda started series production of the all-electric seven-seater Peaq at Mladá Boleslav, with nearly 8,500 orders by end-July. Gold & Markets: Gold prices jumped on lower rate-hike expectations and central-bank buying, with analysts citing renewed Hormuz reopening hopes.

Skoda Electric Push: Skoda has started Peaq production in Mladá Boleslav on a flexible line shared with Elroq and Enyaq, with orders nearing 8,500 by end-July—an early demand signal for the new flagship EV. Cultural Policy Clash: Czech cultural groups have called on the government to withdraw the new state cultural policy 2026–2030, arguing the process was non-transparent and excluded the public. Arts Under Pressure: A Prague National Gallery radio-tower installation by Shella Radio highlights how funding cuts are squeezing alternative culture spaces. Travel & Aviation: Emirates has temporarily suspended A380 service to Prague (and Glasgow) for the summer, with daily superjumbo service set to resume from October 1. Beer Market Shift: Online supermarket Rohlík reports non-alcoholic beer is the fastest-growing segment, now close to one-third of beer sales, while some craft styles are slipping. Energy & Climate Backdrop: Drought-linked low water levels are disrupting European rivers and logistics, with the Rhine and Danube both under strain. Sports—Czech Angle: Linda Noskova backed Ukrainian player Oleksandra Oliynykova after Oliynykova donated her Canadian Open prize money to support unmanned systems for Ukraine’s military.

Czech Auto Market: New passenger-car registrations in Czechia rose 4.53% year-on-year in Jan–Jul 2026 to 149,957, with electric cars up 27.42% to 10,168; Škoda remains dominant with 36.71% share. Energy & Industry: Drought is squeezing European rivers and logistics, with the Rhine’s record-low levels disrupting barge traffic and raising pressure on hydropower and nuclear cooling operations. Defence Industry Deal: Vijayan Trishul Defence Solutions (India) signed a strategic technology partnership with Czech firm DEUS Automation (STV Group) to transfer small-calibre ammunition manufacturing know-how. Beer Market Shift in Czechia: Online supermarket Rohlík reports non-alcoholic beer sales up over 25% year-on-year, now nearing one-third of beer volume, while craft beer by style is the only major segment declining. EU Football Governance: UEFA confirmed a “departure payment” to a former employee linked to allegations involving FIFA chief Gianni Infantino, as FIFA’s proposed private investment plan faces growing scrutiny.

Czech Auto Market: New car registrations in Czechia rose to 149,957 in the first seven months of 2026 (+4.53% y/y), with electric vehicles accelerating: 10,168 new battery-electric cars (+27.42% y/y) as petrol/diesel shares keep sliding. Defense Tech Deal: VTDS signed a strategic technology partnership with Czech firm DEUS Automation to transfer small-calibre ammunition manufacturing know-how, aiming to build higher-quality production capabilities in India. Energy Watch: Croatia’s gas storage is reportedly filling poorly, raising autumn supply and price concerns amid drought impacts on hydropower and nuclear cooling constraints. Czech-US Trade Link: Kansas and the Czech Republic signed a Statement of Mutual Cooperation covering aerospace, advanced manufacturing, nanotechnologies, and agriculture/biotech to boost trade and research ties. EU Football Governance: UEFA confirmed a “departure payment” and MBA fees for a staffer linked to allegations involving FIFA president Gianni Infantino, while Infantino denies wrongdoing. Mobility & Infrastructure: Prague’s summer tourism is being hit by construction disruptions, adding pressure on local businesses during peak season.

Czech-US trade push: Kansas Governor Laura Kelly and Lt. Gov. David Toland signed a Statement of Mutual Cooperation with the Czech Republic, aiming to expand collaboration via the foreign affairs and industry ministries across aerospace, advanced manufacturing, nanotechnologies, and agriculture/biotech—building on existing Czech roots in Kansas. Gold reserves: The World Gold Council says central banks kept buying gold in H1 2026; Poland led, while the Czech Republic added 11 tonnes, as reserve diversification remains the theme. Skoda ramps EV output: Skoda started production of the Peaq electric SUV at the Mladá Boleslav plant, with the company highlighting growing EV share in Czech output. Czech tourism momentum: Prague welcomed 3.83m tourists in the first half of 2026 (+~1%), with higher spending and more interest in culture and services. Energy & drought pressure: Europe’s drought is worsening, with major rivers like the Danube showing record-low levels that could hit tourism and trade. Football business links: Radek Vitek, a Czech goalkeeper, completed a permanent move from Manchester United to Middlesbrough in a deal reported up to £14m, while the Premier League transfer window heads toward its Sept 1 deadline.

Tourism Pulse: Prague welcomed 3.83 million tourists in the first half of 2026, up about 1% year-on-year, with foreign visitors spending more and showing growing interest in culture and higher-quality services. Public Transport Upgrade: Ostrava has ordered 70 Solaris electric buses for delivery in 2027-28, with 600 kWh batteries replacing route chargers—an approach that could reshape how Czech cities electrify fleets. Local Business & Finance: Czech National Bank data points to central-bank gold buying momentum, with the CNB adding 1.7 tonnes last month as gold prices rally on expectations of easier Fed policy. Markets: Europe’s STOXX 600 closed at a fourth straight weekly record, supported by earnings and softer US jobs data. Tech & Industry: Saint-Gobain and AGC will deploy a large-scale hybrid electrified furnace for flat glass in Spain, building on a Czech pilot—another sign of industrial decarbonisation moving from trials to scale. Energy & Climate Risk: Europe’s drought is worsening, with major rivers like the Danube and Rhine showing record low levels, threatening tourism and trade.

Prague Venue Deal: Live Nation and PPF Group will run three of Prague’s biggest arenas—O2 Arena, O2 Universum and Forum Karlín—via a new joint venture where Live Nation takes a 51% stake, aiming to boost international bookings and upgrades (deal pending approvals). Czech Energy & Gas Trade: Transgaz and Argent LNG signed an MoU to explore Transgaz taking an equity stake, targeting long-term access to US LNG and routing supplies through Romania toward Moldova, Ukraine and onward to Hungary, Austria and the Czech Republic. Gold Reserves Watch: The Czech National Bank added to gold reserves (about 1.7 tonnes reported), as central banks keep buying; China’s PBOC bought 20 tonnes in July, the biggest monthly increase since 2023. Markets: Europe’s STOXX 600 closed at a fourth straight record, helped by tech strength and solid corporate earnings alongside softer US jobs data. Prague Disruption: Construction tied to transport upgrades is snarling movement in the historic center, hitting footfall for nearby businesses during peak summer. AI & HPC for Research: The EU EXA4MIND project (coordinated by IT4Innovations) is rolling out tools and training to simplify big-data and AI workflows using European high-performance computing. Crypto/Blockchain: VeChain outlined its “Interstellar” phase upgrade (proposal VIP-255) to improve VeChainThor’s compatibility with Ethereum, with a vote scheduled Aug 10–17.

Ukrainian Protection Rules: Czechia is tightening temporary protection for Ukrainians of military age: new applicants must prove they met their service obligations or were legally allowed to leave Ukraine, while those already holding status (about 400,000 people) are unaffected; the EU-backed change also extends protection until March 2028. Extreme Heat & Power Risks: Central Europe is seeing record temperatures, with Slovakia and Austria hitting new highs and low river levels forcing power-plant disruptions in Poland, raising fresh concerns for energy security amid drought and wildfires. Czech-Linked Tech Rollout: AST SpaceMobile says it’s running satellite-to-mobile integration tests in the Czech Republic and several other European markets with major telecom partners, aiming to connect via standard smartphones. Energy Storage Update (Slovakia): Slovakia’s state gas supplier SPP says it will hit the government target of 13 TWh stored gas before September and expects 17.5 TWh by the start of the heating season. Trade & Cooperation: Kansas and the Czech Republic signed a Statement of Mutual Cooperation covering aerospace, advanced manufacturing, nanotechnologies, and ag/biotech, aiming to boost business and research links. Czech Inflation Watch: Czech inflation accelerated to 1.7% in July (flash estimate), while retail sales growth eased. M&A Spotlight: Czech billionaires are playing an outsized role in European M&A, underscoring how local capital is shaping deal flow across the region.

Czech Energy & Industry: CATL-backed CNTE has commissioned Czech Republic’s largest completed BESS project, Modlany (37.95 MW/41.7 MWh), now online for European frequency regulation, with 11 liquid-cooled storage containers and solar capacity tied into grid balancing. Czech Economy Watch: Czech industrial output grew fastest in six months in June (+4.0% y/y), while the trade surplus shrank sharply, according to Czech Statistical Office data. Czech Inflation: Czech inflation accelerated to 1.7% in July (flash estimate), adding pressure to household budgets. Energy Security: SPP says it will hit the government’s gas storage target of 13 TWh before September, with 17.5 TWh expected by the start of the heating season; Slovakia also reported stronger electricity generation and exports. EU Governance & Aid: Slovakia joined a €6m project to support Moldova’s EU accession, including institution-building and improving governance of state-owned enterprises. Business & Tech Ties: The Czech Republic and Kansas signed a Statement of Mutual Cooperation covering trade, advanced manufacturing, aerospace, agriculture/biotech and nanotechnologies. Sports (Czech angle): Baník Ostrava extended Nigeria defender Abdullahi Bewene on a five-year deal to June 2031. Climate & Transport: The Danube hit historic lows, stranding cruise ships, slowing cargo traffic and hurting tourism across central Europe.

Czech Justice & Business: Prosecutors indicted five people and one company over a CZK 160m contract to supply linear accelerators to Prague’s Bulovka University Hospital, alleging bribery, embezzlement and money laundering; former ODS MP Marek Šnajdr is among the accused. EU Migration Politics: Poland urged the EU to harden its response to the Ceuta crisis, pushing for rules that would automatically bar illegal entrants from residence rights and limit asylum claims. Tech & Telecom: Deutsche Telekom, with T-Mobile Czech Republic and Primoco UAV, tested flying base stations in the Czech Republic, achieving seamless smartphone connectivity via alternating UAV coverage and satellite backhaul. Air Connectivity: Korea and Czechia agreed to raise passenger traffic rights to 10 weekly flights, building on earlier increases with Hungary and Austria. Energy & Markets: Czech inflation rose to 1.7% in July while retail sales growth eased. Corporate Finance: Global Dot Logistics (GDL) reported H1 2026 revenue of $14.53m and said its Czech subsidiary Sambular more than doubled net profit, alongside progress toward an IPO auditor selection.

Ukraine-Carpathian Diplomacy: President Zelenskyy says a “Carpathian Initiative” launching this autumn will unite Austria, Czechia, Hungary, Poland, Romania, Serbia, Slovakia and Ukraine on humanitarian aid, security, logistics and possible reconstruction cooperation. Czech Migration Rules: From Aug. 5, Czech temporary protection for newly arriving Ukrainian men aged 23–60 will require proof of military service via “Rezerve+,” tightening access for conscripts who crossed illegally. Cybercrime & Finance: Czech and Ukrainian police report a Kyiv call-centre scam that defrauded Czech citizens of over UAH 8.4m via cryptocurrency investment pitches; suspects face detention or house arrest. Identity & Fraud Tech: iDenfy added Czech Bank iD to its identity verification platform, letting businesses verify users through bank logins instead of document capture. Energy Infrastructure: CNTE says the Modlany Energy Park in northern Czechia pairs 42.7MW solar with 37.95MW/41.7MWh battery storage for grid services. Transport Demand: České dráhy carried 85.5m passengers in H1 2026, up 7% year-on-year, with regional and suburban growth leading. Foreign Policy/Trade: Czech Foreign Ministry will close its Hong Kong consulate and open a new consulate general in Miami, shifting consular and visa services to Beijing. Business & Industry Links: VTDS (India) signed a strategic tech partnership with Czech DEUS Automation for small-calibre ammunition manufacturing cooperation.

Medicine Pricing Row: Czechia signalled red lines on a Spain-led EU plan to speed patient access to innovative drugs via “early procurement” after EMA approval, arguing any new mechanism must stay within national authority over pricing and reimbursement. Corporate Performance: Coca-Cola HBC lifted its guidance after a strong first half, with improved volumes and margins driving higher expected growth for 2026. Tech & Consumer Launch: Samsung will stage a drone show over Prague’s Vltava on Thursday to unveil its new Galaxy foldables and smartwatches. Czech-Asia Diplomacy: China’s Zhao Leji met Czech Chamber of Deputies speaker Tomio Okamura, stressing the 10-year China–Czech strategic partnership and pushing cooperation in areas like new energy and electric vehicles. Mobility & Transport: Wizz Air opened a new Palermo base with two A321neo aircraft and plans a third, adding routes including Prague. Energy/Industry Watch: Czech households may be overpaying for electricity, while the Czech central bank says domestic banks can withstand even a significant downturn. Business & Talent: Talentuch expanded its pre-built Microsoft Dynamics candidate database across Eastern Europe, Turkey and Latin America.

Ukrainian Protection Rules: Czechia will tighten temporary protection for Ukrainian men aged 23–60 from Aug 5, requiring applicants to prove they’re exempt from military service via Ukraine’s Reserv+ system (new and some repeat applications), while 18–22s only need Reserv+ registration. West Ham Ownership Shake-up: Daniel Kretínský sold just over 2% of his West Ham stake to Czech investor Jakub Havrlant, a move that could complicate Amanda Staveley’s bid for control and hinges on pre-emption and share-threshold rules. Retail/Trade Watch: A Czech business report says Tesco may exit Hungary, with Czech/Slovak assets potentially sold in separate packages and banks Citigroup and Goldman Sachs reportedly preparing the sale. Logistics Expansion: Nova Post says it opened 266 new service locations since start of 2026, reaching 16 countries and 235 cities, with delivery from Ukraine taking three days or more. Energy & Climate Pressure: Europe’s heat and drought are stressing nuclear cooling systems; Hungary’s Paks narrowly avoided a shutdown as Danube levels fell, while Romania had to close reactors after low water. Czech Business & Finance: Czech National Bank coverage says domestic banks could withstand even a significant downturn, while a separate report flags more than half of Czech households may be overpaying for electricity. EU Border Politics: EU ministers backed Spain’s “swift response” after the Ceuta crisis, but differences remain over Schengen checks and migrant regularisation. Cyber/Media Push: Czech authorities plan to strengthen cybercrime reporting via training for journalists and a new press corps role for the CSA. Energy Storage Milestone: A large battery energy storage system in Czechia has been commissioned, with EU-backed grants supporting grid balancing and frequency regulation.