AGP Executive Report

Uber Europe: Uber has paused most of its planned food-delivery expansion in Europe, shelving launches in five of seven target countries for 2026, including the Czech Republic, as it keeps pursuing a takeover of Delivery Hero (FT). Central Banking & Gold: Central banks added 41 tonnes of gold in May, with the World Gold Council saying 89% of reserve managers expect further increases into 2027; the Czech National Bank has bought gold for 39 straight months. EU–US Trade: A study says EU–US goods trade hit a record €875bn in 2025 despite tariffs, but the headline masks damage—especially to EU auto exports, where car and parts shipments to the US fell sharply. Public Media Funding (Czechia): Czech Television’s debate at Karlovy Vary highlighted concerns over a government-approved financing shift that replaces licence fees with state-budget funding, cutting both broadcasters’ budgets by about 15%. Digital Identity: EU preparations for digital identity wallets and the EUDI framework continue to raise sovereignty and implementation questions, with new developments and market moves in the background. Business Climate (Czechia): A survey flags Czechs’ steady preparedness stance on blackouts, while cost-of-living remains the dominant economic worry.

EU–US Trade Watch: A new study says EU goods trade with the US hit a record €875bn in 2025, but the headline masks damage—especially to EU auto exports, with Germany’s car-and-parts shipments down 18.9% as firms front-loaded sales ahead of tariffs. Digital Identity & Regulation: EU preparations for digital identity wallets are intensifying, with new questions about who controls the technology and how sovereignty concerns will shape rollout across member states. Prague Health & Preparedness: Prague saw scabies cases rise to 459 in the first half of the year (up from 300 a year earlier), while a separate survey finds Czechs still aren’t overly worried about blackouts despite limited backup power and water supplies. Labour Market: The Czech Labour Ministry analysis says one in five people entered retirement from unemployment registers before COVID-19, with unemployment often acting as a bridge out of the labour market. Food Safety: A salmonella outbreak linked to flavoured instant noodles has sickened at least 106 people across 14 countries, including Czechia.

EU Energy Funding: The European Commission and EIB have approved a €2.5bn Modernisation Fund disbursement for 51 energy projects across 11 states, with Czechia set to receive €516.8m and Hungary €552.3m, alongside major allocations to Romania and Greece. Crypto Regulation: ESMA has expanded its MiCA-compliant crypto register by 37 newly licensed crypto-asset service providers, lifting the total to 280; Standard Chartered and FalconX are among the notable names, while Cyprus led the latest batch. Central Banking & Gold: The World Gold Council says central banks bought a net 41 tonnes of gold in May, with Poland and China among the biggest buyers, reinforcing demand even as prices have fallen. Czech Diplomacy: Czech Foreign Minister Petr Macinka says Hungary and Czechia have started preparations for a joint government summit, with October now a possible date, focusing on V4 cooperation and EU enlargement. Business & Tech: Prague-based Wultra raised €6.8m to scale post-quantum digital identity and phishing-resistant authentication for banks and fintechs.

Crypto Regulation: ESMA expanded its MiCA crypto-asset service provider register by 37 firms after the transition window ended, bringing the total to 280; Standard Chartered is among the notable new names, alongside FalconX, Sygnum Europe and Ronin EM. Digital Identity Funding: Prague-based Wultra raised €6.8m to scale post-quantum authentication and digital identity wallet capabilities for banks and fintechs, with plans to expand beyond Europe. EU Trade Watch: A German Economic Institute study says EU–US goods trade hit a record €875bn in 2025, but the headline masks export declines—especially in autos—linked to tariff frictions. Czech Business & Investment: Czech tycoons Michal Strnad and Pavel Tykac are reportedly interested in buying 10–20% of Pirelli from China’s Sinochem, though valuation and “golden powers” constraints complicate matters. Energy & Industry: ORLEN Unipetrol’s Kralupy refinery marked 50 years, highlighting major upgrades and sustainable aviation fuel blending. Local Housing: Brno opened two cooperative housing schemes for young buyers, with income thresholds and age limits for applicants.

Food Safety & Consumer Risk: An EU-linked salmonella outbreak tied to flavoured noodles has reached 14 countries and 106 reported cases (49 hospitalised), including Czechia, with investigations pointing to a common Ukrainian producer. Public Transport & Urban Costs: Prague will suspend key tram links from 18 July to 10 August 2026 due to safety-critical track-bed reconstruction, with road traffic changes around Lazarská and Národní třída. EU Energy Finance: The European Commission and EIB disbursed €2.5bn from the Modernisation Fund to 51 energy projects across 11 EU states, including Czechia (€516.8m), aimed at efficiency, renewables and storage. Legal/Business Climate: A Swiss investor is preparing a blood-plasma-related investment treaty claim worth over $188m against the Czech Republic, reviving the long-running dispute. EU/Markets Regulation Watch: Cyprus’s CySEC chair says ESMA is no longer prioritising retail proprietary trading regulation, suggesting the topic has slipped down the agenda. Local Economy & Mobility: Prague’s summer heat and construction disruptions also add pressure to daily commuting as services are adjusted.

EU Energy Push: The European Commission and EIB disbursed €2.5bn from the Modernisation Fund to 51 energy projects across 11 EU states, with Czechia receiving €516.8m for areas like district heating decarbonisation and grid upgrades. Czech Manufacturing Signal: Czech PMI rose to 53.9 in June, the best since April 2022, pointing to faster output and new orders despite ongoing supplier delays and cost pressure. Defense Market Watch: Franco-German tank maker KNDS postponed its planned IPO, blaming volatility in the European defence sector. NATO Politics: Ahead of the Ankara summit, Czech PM Andrej Babiš said President Petr Pavel’s attendance could harm Czech interests, arguing the summit’s spending and defence agenda is the government’s remit. Food Safety: A salmonella outbreak linked to flavoured instant noodles has reached 14 countries and 106 confirmed cases, including in Czechia, with authorities pointing to a Ukrainian producer. Airline Expansion: flyadeal launched summer 2026 seasonal routes including new services to Milan and Prague, as it ramps up capacity for the peak travel season. Telecom Leadership: Yettel Hungary appointed Tomas Reznicek as new Chief Commercial Officer, bringing experience from O2 Czech Republic.

Aviation & Travel Disruption: EU’s Entry/Exit System is triggering “critical” delays, with airports and airlines warning of five-hour queues and half-full departures ahead of the summer peak. Prague City Services: Prague unveiled an interactive “cool oases” map to help residents and visitors find shade and free drinking water during heatwaves, part of its climate adaptation push. Middle East Connectivity: Prague Airport welcomed Saudi low-cost carrier flyadeal with direct flights to Riyadh and Jeddah starting early July, aiming at about 20,000 passengers this summer. AI & Finance: Prague-based EquiLibre raised Series A funding at a $500M+ valuation to scale AI trading agents that handle billions monthly. Defense Markets: Czech arms group CSG’s IPO momentum contrasts with KNDS putting its tank-maker listing on hold due to tougher market conditions. Security Cooperation: Czech National Police is among agencies involved in a major Europol operation targeting ISKP networks across Europe and beyond. Energy Policy (Slovakia): Slovakia is weighing a state buyback option for a 17% stake in Slovenské elektrárne, tying it to nuclear output timing. NATO & Europe: Germany’s Merz called for more European responsibility in NATO and faster Bundeswehr readiness ahead of the Ankara summit.

Public Media Reform Watch: Czech Culture Minister Oto Klempír told President Petr Pavel that the new state-budget model for public radio and TV won’t threaten independence, despite expectations of about a 15% funding drop. Conflict-of-Interest Fallout: Prime Minister Andrej Babiš said he received a 4.25bn CZK Agrofert dividend before moving the firm into a trust, as EU scrutiny continues over how the setup meets conflict rules. Industry Pressure from Germany: EY-linked reporting says German industry cut over 120,000 jobs in 2025, and Czech exporters are bracing for spillover as demand and hiring weaken. Retail Expansion: Cushman & Wakefield reports 16 new international brands entered Czechia in H1 2026, led by food & beverage, with openings in Prague plus Ostrava and Pardubice. AI & Tech Deals: CRA and Multiverse Computing signed up for a Czech AI Gigafactory push, while Digmatix acquired Microsoft partners in Czechia and Romania to expand local Dynamics expertise. Legal/Competition: Uzbekistan’s regulator declared VFS Global and Vizametric dominant in outbound visa services, including Czech-related processing routes. Copyright vs AI: Czech collecting society OSA plans legal action against Suno over alleged unauthorized training and song reproductions.

Prague’s AI-finance boom: EquiLibre, a Prague startup founded by former DeepMind poker researchers, is trading billions daily on S&P 500 and Nasdaq and says it has logged zero negative months since launch, after a Series A that valued it at about $500m. Crypto security growth: A new market outlook forecasts hardware wallets will surge on rising crypto adoption and cold-storage demand, projecting growth to $5.48bn by 2035. Defense supply for Ukraine: Czech Defence Minister Jaromír Zůna says Prague’s artillery-ammunition initiative will keep running as long as needed, targeting 155mm extended-range shells and citing a €5bn bill covered by partner states. EU customs shake-up hits Czech deliveries: Canada Post suspends parcels to EU countries including the Czech Republic from July 1 due to the EU’s new €3 duty on low-value imports. Cyber risk watch: Researchers warn a China-linked group has shifted from Taiwan hosting attacks to targeting critical infrastructure providers across Southeast Asia. Heatwave pressure on Europe: Record temperatures across central Europe are straining health systems and power, while cooling demand is accelerating.

Competition Watch: The Czech Office for the Protection of Competition says it handed out nearly CZK 500m in fines in 2025, the highest in a decade, including a major cartel case tied to public tenders for the Czech Railway Administration (about CZK 130m) and CZK 280m against meal voucher issuers (not yet final), while it also opened 573 first-instance procurement proceedings, up 37% year-on-year after complaints. Tech & Expansion: DIGMATIX, a Latvian Microsoft partner, bought Czech CRM specialist LLP CRM and Romania’s ELIAN SOLUTIONS, making it sole owner of both and pushing its Central Europe footprint; the group expects 530+ staff across eight countries and €41.8m revenue in 2025. Defense Industry: Exosens will supply around 17,000 image intensifier tubes to the Czech Armed Forces via BROLIS, supporting night-vision modernization through 2032. Public Media Tensions: Czech protesters rallied against proposed changes to funding for public broadcasters, chanting “Keep your hands off public media,” as concerns grow over political pressure. Travel & Demand: Prague’s Václav Havel Airport handled 1.58m passengers in May (+5.22% y/y), with Italy overtaking the UK as the top destination. Diplomacy Flashpoint: Czech far-right SPD moves to strip Ukraine’s Zelensky of the White Lion award, raising legal and diplomatic concerns.

Prague Transport Disruption: Prague’s Metro Line C will be partially shut for one week from 4–10 July between Nádraží Holešovice and Pražského povstání to modernise signalling and safety systems, with replacement XC buses and added tram/bus routing changes (including tram line 2 extensions and temporary stop relocations), so commuters should expect longer trips. Public Media Funding Fight: Czech opposition and media groups are pushing back against a government plan to scrap licence fees from January 2027 and replace them with state budget allocations, warning it could weaken Czech Television and Czech Radio independence; President Petr Pavel is set to meet the culture minister amid strikes and EU-rule concerns. EU Euro Readiness: The European Commission’s Convergence Report says Czechia meets nearly all euro adoption criteria, with remaining barriers described as political and institutional rather than economic. Heatwave Pressure on Economy & Services: Record heat across central Europe is driving health risks and operational strain, with Czechia among the countries hitting new temperature highs and public services adjusting (including transport speed limits and power stress). Defense & Industry: Ukraine and Denmark are nearing agreement on a Drone Deal, while NATO parliamentary leaders in Istanbul are calling for higher defence spending and tighter alliance unity. Digital Identity Funding: Czech cybersecurity startup Wultra has raised €6.8m to scale its EUDI Wallet work for Europe’s digital identity rollout.

Air Quality Watch: Prague and the Central Bohemian Region issued an ozone smog alert after ČHMÚ recorded hourly ozone readings above the 180 micrograms per cubic meter threshold, urging people—especially children, seniors and those with respiratory conditions—to avoid intense outdoor activity. Public Safety: Czech prosecutors flagged a shift in juvenile crime, with growing concern over more aggressive violence by children and adolescents and “experience-driven” attacks that seek adrenaline rather than disputes or profit. Sports & National Economy Angle: Czech national team coach Miroslav Koubek resigned after a World Cup exit that left the team bottom of its group, with the Czech Football Association citing mutual agreement following the campaign’s heavy criticism. Tech & Investment: Sony Pictures Entertainment put $100m into Cosm, taking a minority stake as Cosm expands immersive “shared reality” venues—an investment that also highlights Czech ties via Cosm’s LED planetarium dome work in Czechia. EU Trade Rules: From July 1, the EU’s new three-euro tax replaces the de minimis duty-free threshold for parcels under 150 euros, changing how small shipments are charged and potentially reshaping cross-border e-commerce costs. Heatwave Pressure on Business: Europe’s deadly heatwave is disrupting daily life and infrastructure, while cooling demand is surging—Chinese e-commerce players report big jumps in air-conditioner and fan sales as temperatures push east, including toward Czechia. Crime & Governance: NATO parliamentary leaders meeting in Istanbul called for stronger defense capabilities, tighter alliance unity and continued support for Ukraine, stressing resilience and critical infrastructure alongside military spending.

Euro Adoption Watch: The ECB says Romania has made only limited progress toward joining the euro, and it flags similar “limited progress” for the Czech Republic, Hungary, Poland and Sweden, citing still-high inflation, weaker fiscal positions and legal gaps. Digital Security for Drivers: Czech authorities moved the official e-motorway vignette shop to the gov.cz domain (edalnice.gov.cz) to help people spot fake sites and avoid extra brokerage fees. Family Courts & Child Returns: Czech data show Hague Convention child-return cases rarely use the “grave risk” exception—only 1 refusal out of 52 cases between 2022 and 2024—raising questions about how domestic violence is handled in practice. Film Industry Investment: Barrandov Studio Prague opened two new modern sound stages, adding capacity to reach 18 halls after a CZK 210m investment. Sports & Business Angle: Rolls-Royce SMR plans a £12m Derby manufacturing development centre to support factory-built small modular reactors, including projects in Czechia and Sweden. Geopolitics: Iran war talks are on hold after US strikes, while Trump threatens a 100% tariff on European countries that introduce digital services taxes on US tech.

Heatwave Watch: Europe’s record-breaking heat is hitting central and eastern parts hard, with the WHO reporting 1,300+ excess deaths since 21 June and warnings that grids, health services and daily life are under strain; Czech Focus: temperatures in the Czech Republic are among the worst, with new all-time highs around 40.6–40.8°C reported, adding pressure to transport and care capacity; Prague Mobility: car ownership keeps climbing in the capital, with 756 cars per 1,000 residents and growing pressure from commuters swelling Prague’s daytime population by roughly a third; Defense Deal: Rafael Advanced Defense Systems signed a major Spyder air-defense agreement with Romania worth over €2bn, with the system already in use in Czechia; Business & Trade: Taiwan’s foreign minister wrapped up a trade trip to Poland and Italy and plans Mandarin language centers with hubs including the Czech Republic; Transport Projects: Prague’s Metro D is moving ahead with design competitions for Písnice and Pankrác stations.

Cross-Border Rail Boost: A new direct rail link Prague–Berlin–Copenhagen was officially launched in Berlin, letting passengers travel without changing trains for the first time, as an EU pilot to make cross-border rail more competitive and climate-friendly. Heatwave Crisis in Central Europe: A record-breaking heatwave has hit the Czech Republic and wider Europe, with Czech temperatures around 40.8°C in Doksany and similar record highs in Germany, Denmark and Switzerland, straining transport and health services. World Cup Business Mood: South Africa’s historic World Cup Round of 32 qualification has sparked a measurable jump in national happiness indicators, with the GNH.today score rising sharply after the win over South Korea. Sports Betting Watch: As knockout-stage futures take shape, US backing is driving liabilities for bookmakers, with odds movements reflecting how fast sentiment can swing. NHL Draft Ripple (Czech Angle): Czech defenseman Tomas Galvas was selected in the 2026 NHL draft, adding another Czech prospect to the pipeline as teams finalize rosters.

Heatwave Hits Czechia and Central Europe: Europe’s record-breaking heatwave pushed temperatures to new highs, including 40.6°C in Doksany (Czechia) and 41.5°C in Germany, with transport disruption reported as infrastructure struggles under extreme temperatures. EU Emergency Response: The European Commission mobilised rescue teams and emergency aid for Venezuela after twin earthquakes, with Czechia among the participating countries and satellite mapping activated to support operations. Digital Services Tax Trade Clash: The EU warned of swift retaliation after Trump threatened 100% tariffs on countries implementing digital services taxes targeting US tech firms, restarting a fresh transatlantic tariff fight. Business Expansion in the Region: Maspex agreed to buy an 80% stake in Ukraine’s Karpatski Mineralni Vody, aiming to start production in Lviv in August and deepen its footprint across Central and Eastern Europe. Logistics Growth: Rohlig SUUS Logistics announced a ~€30m expansion programme across CEECA, including support from Polish development institutions.