AGP Executive Report

Czech-EU Labor Rules: A new ETUC study says Cyprus is among the majority of EU states missing the pay transparency directive deadline, with only Slovakia, Italy and Lithuania fully transposing the rules by Sunday. World Cup Business: FIFA’s Club Benefits Programme will pay Mamelodi Sundowns and Orlando Pirates at least R51.2m each for releasing players for the 2026 tournament, with payouts rising if South Africa’s teams reach the knockout rounds; Bafana Bafana are drawn with Mexico, the Czech Republic and South Korea. Prague Culture & Tourism: Prague Museum Night returns on 13 June with about 50 venues open late, often free or for a symbolic fee, including hands-on farm programming at the National Museum of Agriculture. Transport & Connectivity: Leo Express plans a new long direct rail link from Germany through Prague and Poland to the Ukrainian border, starting 25 June, with tickets from €10. Aviation/Travel: Czech Airlines is restarting Prague–Bratislava flights after a seven-year gap, aiming to restore cross-border commuter capacity.

Czech Travel & Connectivity: Czechia and Slovakia are weighing a restart of regular Prague–Bratislava flights after more than seven years, with transport ministers agreeing only to assess feasibility based on demand and airline economics. Banking & Airports: Česká spořitelna is opening an Erste Premier Lounge in Prague Airport Terminal 1 from July 1 for non‑Schengen travellers, adding to the existing Terminal 2 lounge and targeting Erste Premier and Erste Private Banking clients. EU Social Policy: A new ETUC study says most EU states are missing the June 7 pay transparency deadline; Czechia is among those with delayed implementation, while only Slovakia, Italy and Lithuania have completed transposition. Aviation & Business: Bell Textron says a Sarajevo Canton helicopter delivery to Prague (then Sarajevo) is slightly delayed due to FAA certification questions tied to an NVG kit. Labour & Rights: The ITUC Global Rights Index flags restrictive strike rules and weaker collective bargaining in Morocco, and notes Czechia among countries where unions are often excluded from labour consultations. World Cup Logistics (Czech link): Mexico’s altitude is expected to affect matches at Estadio Azteca, including the opener vs South Africa and a Czechia group game in Mexico City.

Airport Premium Push: Česká spořitelna will open an Erste Premier Lounge in Prague Airport’s Terminal 1 from 1 July 2026, adding to the existing Terminal 2 lounge and targeting Erste Premier and Erste Private Banking clients on flights outside the Schengen area. Court Fight in Alaska: A wrongful-death trial in Anchorage has begun over the 2021 heli-ski crash that killed Czech billionaire Petr Kellner, with the lawsuit alleging delayed emergency response after the helicopter went down. Czech Security Case: A Chinese journalist, Yang Yimin, is on trial in Prague under a new national security law for allegedly acting for a foreign power, with prosecutors saying he collected information on Czech political figures. EU Pay Transparency: The EU Pay Transparency Directive is moving through member states, with Czech Republic among those expected to introduce bills, as the bloc aims to improve salary disclosure and narrow the gender pay gap. World Cup Business Angle: Czechia’s national team has arrived in North Texas ahead of training in Mansfield, where local leaders say preparations are on schedule for the Czech squad’s World Cup stay. Media & Competition: European publishers, including Czech participants, are suing Google for adtech monopoly abuses, seeking damages of about £552m funded by Prague-based LitFin.

Competition & Consumer Policy: European publishers, including Czech firms, are suing Google for alleged adtech monopoly abuse, seeking £552m+ in damages after the EU’s €2.95bn fine. Energy & Trade: Czech PM Andrej Babiš says he discussed Azerbaijani oil and gas transit through Ukraine with President Zelensky, while Prague also pushes to meet supply agreements tied to Azerbaijan. Retail Expansion: Uniqlo has signed a lease for its first Prague store in Hybernia Palace, with opening expected no earlier than Q1 2028. EU Funding Freeze: The European Commission says Czech authorities can resume Agrofert-linked agricultural subsidies, but EU reimbursement stays frozen pending a conflict-of-interest review of Babiš. Aviation & EV Transition: Vaeridion doubled its advisory panel for its Microliner electric aircraft, adding Czech and other stakeholders as it targets service entry in 2030. Aviation Services: Baltic Ground Services expanded Freebird Airlines fueling support, adding Ostrava Airport in the Czech Republic for summer 2026. Business & Economy: Czech wages keep rising—average pay topped 50,000 crowns in Q1 for the first time.

Wages Watch: Czech Statistical Office data show average gross monthly pay hit 50,282 crowns in Q1 2026, up 8.1% year-on-year nominal and 6.4% in real terms, with inflation at 1.6%—a clear boost to household purchasing power. EU Migration Policy: EU ministers broadly backed limiting temporary protection for Ukrainian men of military age, with any change aimed at new arrivals under the directive (which covers 4.33m people, including large shares in Germany, Poland and Czechia). Central Bank Gold: Even as gold prices soften, central banks keep buying—World Gold Council data point to net purchases of 17 tonnes in April, including activity by Poland, China and the Czech Republic. Czech Security & Business: Prague police are investigating the reported murder of Israeli “King of Slot Machines” Tony Bargig, highlighting ongoing risks around cross-border business and crime. Tech & Logistics: Czech firm CultiWise is partnering with Amazone to push AI satellite/drone crop maps into Amazone’s AmaConnect ecosystem, aiming to speed up variable-rate farming.

EV Infrastructure & Finance: The European Investment Bank is teaming up with Ireland’s transport ministry and ZEVI to speed up a nationwide EV charging rollout, using procurement templates, concession contract models and financial guidance to help local authorities build faster and more equitably. Rail & Cross-Border Mobility: Leo Express will launch a new 1,300-km direct train linking Przemyśl (near Ukraine) with Frankfurt via Czech stops like Prague and Ostrava, aiming to cut travel friction across Central Europe. Agri-Tech & Industry Partnerships: Amazone has partnered with Czech AI mapping specialist CultiWise to transfer drone/satellite crop-application maps into Amazone’s AmaConnect ecosystem, supporting variable-rate sowing and precision crop protection. Czech–Taiwan Investment Push: Taiwan’s government announced a new €50m fund to boost bilateral investment with the Czech Republic, following a Czech Senate speaker visit and talks on joint ventures and tech exchange. EU Migration Policy: A group of EU states including Czechia is urging tighter Russian tourist visa rules, arguing “shopping weekends” undermine solidarity as Ukraine continues to face attacks. Central Bank Gold: The World Gold Council reports central banks resumed net gold buying in April; Czech reserves added about 3 tonnes for a 38th straight month. Aerospace Showcase: Farnborough Airshow 2026 has confirmed its first flying-display lineup, including a Czech Air Force L-159 flypast alongside major international military and commercial aircraft.

Energy & State Control: Prague bourse leader ČEZ shareholders approved a restructuring that sets up a new subsidiary as part of government plans to restructure and nationalise parts of the group, with production moving under full state control and the state expected to hold 51% in the new entity. Central Banking & Gold: The World Gold Council says central banks returned to net gold buying in April (+17 tonnes), led by Poland (14t) and China (8t); the Czech National Bank kept a steady streak with 3t in April. Retail Tech in Czechia: Grocery chain Albert expanded its partnership with Brain Corp, moving from cleaning robots to AI-powered shelf scanning to improve inventory accuracy and reduce out-of-stocks. EU Economic Roadmap: The European Commission turned the 2026 Semester into a roadmap for EU resilience, skills and fiscal discipline, while pushing competitiveness, decarbonisation and housing solutions. Czech Society: Czech marriage numbers hit a new century low in 2025, as financial pressure and changing partnership norms keep weddings declining. Prague Culture & Tourism: Prague Museum Night returns with free/discounted entry at 60+ venues, including new participants like the National Gallery Prague. Aviation & Connectivity: Vietjet announced major Asia-Pacific and Europe route expansion, including a Hanoi–Prague service, plus a 12 million-ticket promotion.

Central Banking & Gold: World Gold Council data show central banks flipped back to net buying in April, led by Poland (14 tonnes) and China (8 tonnes); the Czech Republic kept up its streak with 3 tonnes of purchases for a 38th straight month, while Russia continued selling (6 tonnes). Prague Culture & Tourism: Prague Museum Night returns for its 19th edition with free or discounted entry at 60+ venues, including new partners like National Gallery Prague, plus a renovated Museum of Prague as the main hub. Public Art in Prague: Prague 6 will host “Mural Ruzyně,” a 1,800 sq m collaborative mural running June 15–30 with Czech and international artists. Biotech & FDA: SOTIO Biotech (PPF Group) won U.S. FDA Orphan Drug Designation for SOT106 in osteosarcoma, targeting a first-in-human trial in H2 2026. EU Policy Pressure: A coalition of 200 companies urged the European Commission not to reopen the Packaging and Packaging Waste Regulation, arguing for timely implementation via secondary rules. Energy & Growth Outlook: EBRD cut 2026 growth forecasts, blaming a Middle East energy shock for higher costs, weaker competitiveness and strained public finances. Czech International Links: Taiwan and the Czech Economic and Cultural Office unveiled “Havel’s Bench” in Taipei, highlighting democratic dialogue ties. Sports & Media: World Cup 2026 kicks off June 11 across the U.S., Canada and Mexico; Czech fans will likely follow via major broadcasters and streaming guides.

Cybersecurity & Geopolitics: Seqrite warns of a China-linked spear-phishing campaign (“Operation Dragon Weave”) targeting Czech Republic and Taiwan organizations, especially government/public sector, research, tech/software and financial services. Energy & Industry: ČEZ is taking its first step toward full state ownership, while separate reporting says CEZ break-up clears the path for state control. EU Policy & Health Access: Czech patients face longer waits for innovative drugs as access slips, with the broader region also seeing pressure on reimbursement timelines. Telecom: O2 Czechia launches the O2 Spark line of premium mobile accessories with a 10% launch discount. Aviation & Travel: Tallinn Airport hit a new May passenger record (over 354,000), driven by Wizz Air route expansion, including new links to Prague and other European destinations. Business & Sports Dealmaking: Ebadat represented Blue Crow Sports Group in the sale of its controlling stake in Spanish club CD Leganés to 885 Capital. Wildfire Response: The EU Commission is financing and coordinating a record wildfire deployment, pre-positioning firefighters and aircraft across high-risk countries.

Euro Policy Shift: EU governments are weighing whether to narrow temporary protection for Ukrainians by excluding men of military age (and people who left illegally), with any limits likely aimed at new applicants as the directive runs until March 2027. Czech Security & Justice: A Czech court cleared the way for extradition of German neo-Nazi activist Marla-Svenja Liebich, after Germany’s self-determination law enabled a legal gender change. Czech Policing Crackdown: Police opened a case into alleged human trafficking and exploitation of young women via social media, including OnlyFans, with assets seized and at least one suspect in pre-trial detention. Energy Deal Watch: Czech EPH and Canada’s CPPIB are among potential bidders in a process for Uniper’s €10bn-plus stake sale, with letters of interest due June 12. Euro Adoption Debate: President Petr Pavel urged Czechia to adopt the euro if the koruna is holding back development, arguing the economy is deeply tied to the eurozone. Business & Finance: SCF completed the acquisition of Warsaw’s Janki Retail Park; Blik eyes euro-zone expansion via Slovakia and Romania; and Summus Capital bought Krakow’s The Park Krakow for €48m. Culture & Heritage: Château d’Yquem restored a cache of legendary wine hidden under a Czech castle floor for decades, now set for display. International Context: Kenya’s court extended a halt on an Ebola facility near Nanyuki as Ebola cases in Congo remain high.

Energy & State Control: ČEZ shareholders backed a plan to split out electricity and gas distribution networks, trading and customer sales into a separate unit, clearing the way for tighter state control over the group’s core generation business. Defense Industry Sale: The Czech government is preparing to sell explosives maker Explosia, with a potential price tag of CZK 15–17bn, and is weighing a “golden share” to keep influence while using proceeds to bolster the defence budget. M&A Watch (Energy): A new digest highlights deal momentum across the power sector, including CEZ restructuring plans, major IPO activity in India and large acquisitions in the US and Europe. AI & Manufacturing: Hon Hai (Foxconn) and France’s Bull struck a partnership to expand Europe’s AI infrastructure, with component work in Pardubice and final integration in Angers. EU Migration Policy: EU member states are debating whether to exclude men of conscription age from future temporary protection extensions for Ukrainians, as the scheme runs to March 2027. Local Administration for Foreigners: Prague 1 launched an intercultural worker service at the district office to help temporary protection holders and other foreigners navigate Czech bureaucracy through end-2026. Sports Integrity & Betting: A global investigation warns the World Cup could be targeted by spot-fixing, with suspicious cases flagged to national federations.

AI & Manufacturing: Hon Hai (Foxconn) and France’s Bull are partnering to expand Europe’s AI infrastructure, with component work at Foxconn’s Pardubice site in Czechia and final integration in Angers, backed by an initial €120m+ France investment. Energy Grid Bottlenecks: A study for Beyond Fossil Fuels says distribution grid queues are blocking about 455 GW of battery storage and 375 GW of renewables across eight markets, including Czechia, with clean-energy assets worth around €100bn stuck. EU Rules & Compliance: The European Commission has opened infringement procedures against 20 member states, including Czechia, over delayed transposition of EU green-claims and sustainability-label rules. Czech Economy Snapshot: Czechia climbed to 14th in the EU Prosperity Index, helped by improved economic stability, but housing and digitalisation remain weak spots. NATO Spending Debate: Czech PM Babiš again warned the country is unlikely to meet NATO’s defence-spending target amid budget pressure. Rail Modernisation: Czech transport authorities plan to electrify roughly 600 km of rail lines by the early 2030s and expand ETCS on key routes. World Cup Business Angle: FIFA’s Club Benefits Programme will pay clubs for players at the 2026 tournament; Czechia is in Group A with Mexico, South Africa and South Korea.

Czech Defence Budget Pressure: Prime Minister Andrej Babiš says Czechia is unlikely to hit NATO’s 2% of GDP defence target this year, citing budget strain, while the EU and President Petr Pavel have criticised 2026 cuts. EU vs Competitiveness Row: Babiš also warns the EU is steering Europe toward decline “like the Roman Empire,” arguing climate and economic policies are weakening industry and strategic independence. Agrofert Subsidy Scrutiny: Justice Minister Jeroným Tejc says any wrongly disbursed subsidies to Agrofert must be recovered, as EU concerns over Babiš’s conflict of interest keep payments under review. Taiwan Business Diplomacy: Czech Senate President Miloš Vystrčil leads a Taiwan visit focused on politics, business and education, but China condemns it as violating the “one-China” principle. Nuclear Supply Chain Move: Doosan Enerbility joins Rolls-Royce SMR work for Temelín and Wylfa, targeting long-lead reactor components and faster delivery. Wage Growth Watch: Czech private-sector average pay rises to about €2,024 per month, outpacing Slovakia and narrowing the gap with Poland. Prague Tourism Strain: Prague’s short-term rental stock is estimated at ~18,000 apartments, about a third of the city’s accommodation capacity, intensifying housing pressure. Transport & Travel: RegioJet restarts the Prague–Croatian coast bus corridor from 29 May, with new routes from 12 June and fares from 899 CZK.

NATO Budget Pressure: Czech PM Andrej Babiš told the Financial Times Prague will “probably” miss NATO’s 2% of GDP defence-spending target this year, blaming an inherited budget shortfall and arguing allies should focus on capabilities rather than spending figures. EU Politics & Industry Costs: In the same interview, Babiš warned the EU is weakening like the Roman Empire’s decline, citing decarbonisation and security policies that raise costs for industry. Subsidy Scrutiny: Justice Minister Jeroným Tejc said any wrongly disbursed subsidies to Agrofert must be recovered, after EU concerns over Babiš’s conflict of interest. Explosia Sale Timing: Industry Minister Karel Havlíček said a state sale of Explosia would be best this year or in 2027, with several potential buyers and a possible state stake to keep influence. Defence Procurement: The Czech Ministry of Interior signed with Airbus Helicopters for 11 new H145 helicopters for police aviation, including training and logistics support. Wages: A Forvis Mazars review puts average Czech private-sector pay at €2,024 per month, up 9% year-on-year, overtaking Slovakia. Tourism Housing Crunch: Prague’s short-term rental stock has hit about 18,000 apartments, nearing three years of new housing starts. Hospitality Deal: Kempinski is acquiring Prague’s historic Augustine Hotel, returning to direct hotel ownership after decades. Energy Tech: Czech startup Electree is piloting building heating using waste heat from servers, targeting 20–25% lower energy costs in Brno.

M&A & AI: Cyient agreed to buy US-based TAO Digital Solutions for $218m (cash, upfront plus earnout), adding AI/data engineering and digital product capabilities; closing is targeted for Sept 30, 2026, with TAO operating across the US, India, Taiwan, Greece, Germany and Czechia. Energy & Investment: Czech billionaire Daniel Křetínský said EPH could scale up its TotalEnergies stake (currently ~4.2%), after receiving shares worth nearly €7.5bn in exchange for power and battery assets. Travel & Hospitality: Prague is outperforming Central Europe’s hotel market, with April revenue per available room at €76 and occupancy near 70% in early 2026, though regional demand is more mixed. Retail Expansion: Ukrainian grocery chain Best Market will open its first Czech store in Prague on June 6, bringing Eastern European food and growing a network of ~30 locations in Poland. EU/Politics & Security: Romania published a SAFE-funded military/civil protection procurement plan worth €6.6bn, including mobile intensive care units and rescue boats. Czech Diplomacy: Senate president Miloš Vystrčil heads to Taiwan June 1-4 to deepen Czech-Taiwan cooperation. Legal/Conservation: India’s Supreme Court rejected a bid to reopen the Vantara wildlife transfer case, saying the recipient acted in good faith.

Czech Economy: Czechia’s GDP growth eased in Q1, with the latest figures pointing to a slower pace than before, keeping pressure on households and firms as Europe’s broader slowdown lingers. Energy Costs: EU petrol and diesel prices climbed sharply by late May, with the Czech Republic among the biggest movers for petrol (+29.9% since February), a reminder that Middle East-linked market swings still hit local budgets fast. Defense & Industry: New reporting says Greece transferred more artillery to the Czech Republic than previously disclosed—66 M110A2 203mm self-propelled howitzers, plus additional 155mm and 105mm systems—raising questions about how quickly Ukraine can absorb the hardware. Ukraine Support: The Czech-led ammunition push is losing momentum, with more countries pulling out, which could complicate future deliveries. Public Finance & EU Politics: EU leaders are gearing up for the next Multiannual Financial Framework talks, with member states split between higher spending and tighter fiscal discipline—an issue that will shape Czech business planning across the next seven years. Healthcare Access: Czech patients face longer waits for innovative drugs, as access slips, adding to the cost and staffing strain on the system. Travel & Trade Links: Irish spending abroad shows Czechia as a standout (+39%), while trade and tech ties with Azerbaijan are highlighted in Prague, underscoring how diplomacy and commerce keep intersecting.