AGP Executive Report

Energy & Climate Risk: Record-low Danube river levels are forcing Hungary to cut output at Paks and pushing Romania to shut down its last working reactor, underlining how drought and heat are turning nuclear cooling into an economic and security problem for Central Europe. EU Emergency Response: The EU has deployed helicopters and water bombers to fight a record wildfire in Belgium’s High Fens, with evacuations ordered in parts of Liege province. Cybercrime & Payments: A new Android malware campaign (WindRelay, paired with SpyNote) shows how fraudsters can drain card data via NFC relay after a short phone call, raising the stakes for Czech consumers and banks. Trade & Industry Links: Czech firms are exploring cooperation with Moldova beyond food—also textiles, HoReCa equipment, leather and packaging—while Moldova looks to expand imports from Czechia. Finance Snapshot: Czech banks provided CZK 40.4bn in mortgages in July, up 7% year-on-year. Business & Security at Prague Airport: A passenger attacked four ground-handling staff at Václav Havel Airport after being denied boarding, with the case now under investigation.

EU Recovery Funds: Hungary’s transport minister Dávid Vitézy says the country will recover the full €10bn EU recovery package and is pushing a motorway-concession overhaul, with projects tied to milestones due by 31 August. Energy Diplomacy: Ukraine’s Denys Shmyhal discussed Czech support for autumn–winter energy readiness, citing 35 Czech equipment shipments and joint nuclear, hydro and hydrogen plans. Defence Supply Chain: A new report flags Europe’s nitrocellulose squeeze as ammunition expansion targets collide with a likely 10,000-tonne annual deficit, with Czech-linked production changes now in the mix. Rail Freight: ČD Cargo hauled a 22-wagon coke train to Denmark for the first time, using Siemens Vectron multi-system approval—one more sign EU rail liberalisation is translating into real routes. Climate & Power: Record-low rivers are forcing nuclear output cuts and shutdowns across Central Europe, with Hungary’s Paks throttled and Romania’s last reactor shut. Security at Prague Airport: A passenger attacked four ground-handling staff after being denied boarding on a Rome-bound flight; police are investigating disorderly conduct. Digital Payments Pitch: SNC SCANDIC PAY promotes cross-border payments “without limits,” positioning its ecosystem as a single digital money-management layer. Czech Tourism Demand: Amadeus data says bookings to Czechia are among Europe’s fastest-growing, with interest spreading beyond Prague to Brno, Olomouc and other destinations. Invasive Species Watch: Czech conservationists are racing to eradicate self-cloning marbled crayfish in Moravia as part of an EU rapid-response effort.

Czech Tourism & Travel Demand: Amadeus data shows bookings to the Czech Republic are among Europe’s fastest-growing, with growing interest in cities beyond Prague such as Brno, Olomouc and Cesky Krumlov. Invasive Species & Environment: Czech conservationists are leading an EU-backed rapid response to eradicate newly found self-cloning marbled crayfish in Moravia, aiming to stop spread before populations grow. Energy & Climate Risk: Record-low Danube and other river levels are disrupting nuclear cooling across the region, with Romania shutting its last working reactor and Hungary cutting Paks output—raising pressure to adapt nuclear operations to extreme drought. Cyber & Payments Fraud: New Android malware “WindRelay” can turn phones into fake payment terminals by relaying NFC card data in real time, paired with a remote access tool used after a phone-call scam. Logistics & Trade: ČD Cargo ran a locomotive into Denmark for the first time, hauling a coke block train from Ostrava to Padborg as it expands foreign volumes. Business Infrastructure: Foxpost (Packeta group) is doubling sorting capacity at its Fót facility with an automated line boosting throughput to 12,000–14,000 parcels per hour from October. Regional Geopolitics & Trade Controls: A White House report flags the Czech Republic as part of a “Central and Eastern European processing belt” potentially used for China-linked tariff evasion via transshipment.

Water Stress in Czech Villages: Drought is biting hard across Czechia, with wells drying up and small streams disappearing; in Plzeň Region’s Krsy, tankers deliver drinking water daily as private wells run low, while in Horní Bečva firefighters have been called to supply municipalities and hotels are being urged to cut consumption. Crypto Security in Prague: Hardware wallet maker Trezor says a shipping-provider breach exposed order data for 11,742 customers (plus partial data for 1,947), warning of higher phishing risk. Czech Politics & the Presidency: Ahead of the next election, the government is preparing a single candidate to block President Petr Pavel’s re-election, with Babiš’s past conduct and polling uncertainty keeping the race open. Energy & Infrastructure Risk: Poland is tightening energy-security measures amid sabotage fears, including contingency planning around gas routes and tighter monitoring near LNG and Baltic Pipe infrastructure. EU Pay Transparency: Poland has already started recruitment-related pay transparency steps, with broader implementing rules still pending—relevant for multinationals operating in Czechia and other partially transposing states. Business & Tech Growth: Brno’s Gamebaze is taking incubated studios to Gamescom 2026, highlighting the region’s push to scale game development. Drought’s Wider Economic Hit: A Dutch sustainability-focused analysis estimates EU drought and heatwaves could cut 2026 GDP by about 1% (around €180bn), with farmers among the hardest hit.

Robotics & Intralogistics Deal: NEURA Mobile Robots will absorb Bosch Rexroth’s ACTIVE Shuttle driverless transport system, including its ACTIVE Fleet Manager and ROKIT navigation stack, effective Oct 1—another sign Czech-linked robotics is shifting from hardware to shared “intelligence” layers. Rail & Energy Transition: Europe’s biggest battery-train order is entering certification at the VUZ Test Centre in Velim, a key Czech regulatory gate before Austria can expand diesel-free rural lines. Retail Expansion: Burgermeister plans its first Prague restaurant on Wenceslas Square in early 2027, using an in-house production model as it scales across Czechia. Cybersecurity: Prague-based Trezor says a shipping-provider breach exposed order data for 13,689 customers, warning of increased phishing risk. Fintech Perks: Revolut premium subscribers lost access to some WeWork sites across Europe, including Prague, after renegotiations over fees. Public Transport Heat Pain: A new Prague site tracks how many trams run without air conditioning—71% in one snapshot during 37°C weather. Drought & Power Risk: Record-low Danube flows are forcing nuclear shutdowns and exposing energy vulnerabilities across Central Europe, with Romania disconnecting a reactor due to insufficient cooling water. Solar Investment: Rezolv secured final approval for a 1.2GW solar PV project in Romania, with plans for large-scale battery storage. Digital Identity Prep: Czechia is enlisting citizens to stress-test digital ID ahead of elections. Business & Crime Enforcement: Prague police carried out major checks on drivers and vehicles, issuing fines and starting deportation proceedings against illegal employment cases.

Energy & Trade: Transgaz plans to take an equity stake in US LNG terminal developer Argent LNG, aiming to secure long-term access to US gas and route LNG via Romania toward Moldova, Ukraine and further into the Czech Republic and Central Europe. Public Procurement & Cities: Brno residents say a promised protection of mature street trees failed in practice after sewer works on Slovákova were announced with only two weeks’ notice, with a 20+ year-old ginkgo reportedly felled before meaningful objections. Transport & Security: A 21-year-old Prague taxi driver was arrested after allegedly keeping a suitcase with CZK 3.5 million in cash left in his car by passengers; he faces up to five years. Digital Identity & Fraud Risk: Czechia is enlisting citizens to stress-test digital ID ahead of elections, while Estonia reports growing use of postal and courier shipments for narcotics, with most parcels linked to the Netherlands and Czechia. Business & Cross-border Deals: Czech PM Andrej Babiš met Serbia’s leadership in Belgrade to boost trade and investment, including support for selling L-39 Skyfox aircraft to the Serbian Air Force. EU Mobility Scam Alert: ETIAS has been delayed indefinitely, and EU officials warn travelers not to apply or pay for fake “ETIAS” offers. Geopolitics: Iran’s foreign minister hit back at France and EU states over condemned protest executions, escalating diplomatic tensions.

Digital ID Readiness: Czech authorities are asking people to stress-test the eDoklady digital ID app ahead of municipal elections, aiming to avoid last year’s election-day login failures after a surge of 1.5 million requests. EV Charging Rollout: Prague is extending its public-lighting modernisation and “EV-ready” streetlight prep through 2028, coordinating with grid upgrades to cut disruption while expanding e-mobility charging capacity. Cybersecurity Benchmark: A new National Cyber Security Index ranks Czechia at the very top (tied with Albania), highlighting strong preparedness and incident response. Entrepreneurship Snapshot: The number of self-employed people in Czechia rose by 23,000 to 1.202 million in H1, with Prague leading; experts warn some growth may reflect “false self-employment.” Cross-border Business Ties: Prime Minister Andrej Babiš met Serbia’s leadership in Belgrade to boost trade and investment, including support for Czech firms and talks on selling L-39 Skyfox aircraft to the Serbian Air Force. Energy & Industry Diplomacy: Babiš also met Montenegro’s PM Milojko Spajić to push EU integration, defence cooperation and business opportunities. Fraud Watch: A new Android scam pairs SpyNote remote access with WindRelay NFC relay malware, enabling fast contactless payment fraud—an issue for anyone using mobile banking.

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.