Politics & Economics

Czech Egg Prices Soar Despite VAT Reduction

There has been a notable increase in egg prices across Czech supermarkets. This price surge comes as a surprise, particularly in light of the recent three-percentage-point reduction in the value-added tax (VAT) on food items. Throughout December, supermarkets lured customers with discounted egg prices. However, these same eggs are now being sold at a higher cost per piece. The earlier Christmas promotions and current seasonal factors, including concerns about bird flu, are likely contributing to this unexpected price hike. According to the Czech Statistical Office, the average price of eggs in stores at the end of the previous year was 3.70 crowns each. Stores like Albert offered promotions, such as a pack of ten eggs for 29.90 CZK, a deal echoed by other chains. Following the New Year, the pricing has seen an increase, with Albert pricing the package at 48.60 CZK, Lidl at 43.50 CZK, and Penny at 46.65 CZK. At Billa, a pack of thirty eggs equates to a single egg price of 4.66 CZK. It’s not only consumers who are closely monitoring these prices; both the Government and the Czech National Bank had pledged a reduction in high inflation. However, the repricing efforts in January, along with...

by Karolina Kubičková Jan 17, 2024

Record Number of Self-Employed Individuals Cease Business in Czechia

In 2023, the Czech Republic witnessed a record-breaking 277,000 self-employed individuals terminating their businesses, marking the highest number since 1993, according to data from Imper. The trend is attributed to economic uncertainties, escalating costs and increased administrative requirements such as mandatory data boxes. Despite 68,000 entrepreneurs registering anew, mirroring the figures from 2022, the overall termination of businesses reflects a challenging economic environment. Last year, 14,000 limited liability companies and 4,703 foreign individuals ceased to exist. Associations that ceased to exist were 3,424, and individuals engaged in agriculture also significantly felt the impact with 2,836 entities ending their activities, a notable increase from 812 in 2022 The termination of businesses in 2023 almost matched the previous record set in 1993 when over 278,000 self-employed individuals ended their businesses. Factors contributing to this record include the dissolution of Czechoslovakia and the legislative prohibition of the “black system,” effective from that year onwards. Throughout the years, the number of terminated businesses varied in the tens of thousands, with exceptions like 2013 when nearly 150,000 self-employed individuals ceased their activities and the post-COVID year 2022. Tomáš Berger, the director of Imper, pointed out that the peak termination of activities occurred during February and...

by Cara McErlean Jan 16, 2024

“Israel Can Rely on Us in Battling Hamas”, Says Czech President Pavel

Czech President Petr Pavel assured his Israeli counterpart Herzog that his country stands shoulder to shoulder with the Jewish state in its battle to defeat Hamas. “You can always rely on the Czech Republic,” Pavel told Herzog when the two met at the President’s residence in Jerusalem. He later spoke in a closed-door meeting with Prime Minister Benjamin Netanyahu. Discussing the future of Gaza The two presidents discussed the future of Gaza after the Hamas issue is settled and the need for both military and civilian oversight. They also discussed other issues in the Middle East that are linked to Iran and Russia. In calling for international support in Israel’s struggle against Hamas, Herzog said, “If we are not here, Europe and the United States will be next, which is why the world should support us.” He described the war that Hamas is conducting as “cynical and psychological” and defined Hamas leader Yahya Sinwar as “a psychopath who kills people with his own hands.” On the matter of humanitarian aid to Gaza, Herzog reiterated what he has said to other world leaders and solidarity groups, namely that Israel is in favor of additional assistance, which has already been increased...

by Prague Morning Jan 15, 2024

Financial Outlook for Czech Households in 2024: Higher Expenses Anticipated

Czech households are gearing up for increased expenditures in 2024, as revealed by a fall survey conducted by STEM/MARK for Home Credit. 3 out of 10 respondents expect their income to rise alongside the anticipated uptick in costs. Despite economic uncertainties, 60% of those surveyed have no plans for significant investments, but a notable 37% are eager to seize the opportunity for a summer vacation abroad. Housing prices in the Czech Republic have reportedly reached a low point, prompting experts to predict a reduction in interest rates by the Czech National Bank toward the end of the year. The nation experienced the highest inflation in the EU in the penultimate week of the previous year, leading some retailers to offer discounts even before the holiday season. In response to this economic landscape, individuals have become more adept at adjusting expenses and seeking additional income sources. Miroslav Zborovský, the ombudsman for Home Credit in the Czech Republic and Slovakia, notes that the survey indicates a shift towards more thoughtful financial planning. People are not only considering their expenditures but are actively contemplating ways to manage and augment their income in response to the challenging economic situation. In 2024, 66% of respondents...

by Prague Morning Jan 10, 2024

Rising Unemployment in Czechia: More Job Seekers Than Vacancies

In December last year, unemployment in the Czech Republic rose to 3.7 percent from November’s 3.5 percent. Since last January, this marked the first time that there were more registered job seekers than vacancies. According to data released by the Czech Labor Office, job seekers increased by 16,000 to 279,227, while vacancies decreased by 7,000 to 271,789. This trend of rising unemployment at the end of the year is not new, as seasonal jobs in agriculture and construction often end with the onset of winter. Additionally, more people register for benefits as their fixed-term work contracts and agreements terminate or as self-employed individuals temporarily suspend their activities. Employers continue to seek employees in technical and labor professions, with a long-term demand for skilled artisans. Roughly three-quarters of vacant positions seek applicants with primary or lower education, and two-thirds of positions are suitable for foreigners. Those most commonly without work are people with lower qualifications, specifically those educated without a high school diploma and those with primary education. The average age of the unemployed was 42.8 years in December. Despite these trends, the state of the job market in the Czech Republic has not fundamentally changed. The rise in unemployment in...

by Prague Morning Jan 09, 2024

Czech National Bank Warns of Eurozone’s Uncertain Future

Czech politicians debating whether to adopt the euro should take into account the rather “unflattering” economic situation in Eurozone countries as the group’s future remains uncertain, a report published by the Czech National Bank (CNB) reads. In its report, the CNB points out that there has been no progress in deepening economic and monetary union and that the architecture of the euro area remains incomplete. The CNB also warns that the future development of the monetary union is unpredictable. “The fiscal position of most euro area countries remains unflattering, with budget deficits from the coronavirus crisis only slowly reducing and debt levels in some countries at the limits of sustainability,” reads the fresh analysis. “The questions of the appropriate timing of the Czech Republic’s possible entry into the euro area and the impact of such a move on the Czech Republic can thus be answered only with great difficulty,” the analysis adds. Moreover, the country is currently not meeting the Maastricht criteria needed to adopt the euro. “Generally speaking, the priorities of this government include first and foremost the recovery of public finances, and only then can the debate on the timing of euro adoption begin,” a Finance Ministry spokesperson...

by Prague Morning Jan 08, 2024

Prague Faces Surge in Beer Prices as VAT Shifts from New Year

As the New Year unfolds, so does a change that’s leaving beer enthusiasts in Prague with a bitter aftertaste. The shift in VAT on draught beer, effective from January 1st, has prompted several establishments in the city to raise their prices, causing concerns among locals and expats alike. Last autumn, many businesses in Prague adjusted their prices in response to an earlier hike by breweries. However, the recent government package, relocating VAT on draught beer from the abolished ten percent to a basic rate of 21 percent, has triggereddraft beer prices czechia a new wave of price adjustments. In the city center, some establishments now charge over CZK 70 for a pint of 12-degree draught beer, with others closely approaching this threshold. According to data from Dotykačka, a company that analyzes cash register data, Prague restaurants were selling a pint of 12-degree beer for an average of CZK 64.30 in July 2023. However, by the beginning of 2024, this average had dropped to CZK 58.80. In the first week of January, Prague businesses that adjusted prices typically increased charges by three or four crowns for a pint of Pilsner compared to December. Nevertheless, some outliers, like a business on Národní...

by Prague Morning Jan 05, 2024

Czech Pensions to Increase by 360 CZK per Month

Czech old-age, disabled, widow’s, widower’s, and orphan pensions will increase by 360 crowns a month for all from January, under a government regulation on regular indexation. The average old-age monthly pension should be above 20,600 crowns in January, the Labour and Social Affairs Ministry stated previously. More than 700 billion crowns are expected to flow from the budget to all pensions in 2024. More than 2.8 million people receive old-age, disability, or survivors’ pensions from the state. Under the law, pensions are regularly indexed in January. So far, they have been increased by price rises and by half the increase in real wages. As real wages have not risen, the January increase reflects only price rises. According to the price increase, which was 1.3 percent, the average old-age pension should grow by 264 crowns. However, all pensioners will receive about 100 crowns more. According to the ministry, the solidarity part of pensions must correspond to one-tenth of the average monthly wage, which is expected to be almost 44,000 next year. The fixed part of the pension must thus go from 4,040 to 4,400 crowns. It must therefore rise by 360 crowns. From January, special pension contributions for World War Two freedom...

by Prague Morning Jan 01, 2024

President Pavel Calls for “Strength and Unity” and “Concrete Steps Towards Euro Adoption”

In his New Year address to the nation, President Petr Pavel underlined the need for strength and unity, saying it had been a difficult year from which he hoped to see the nation emerge stronger. Looking back on the past year, Mr. Pavel said he appreciated the government’s unity in undertaking unpopular measures to tackle the country’s debt, but criticized it for poor communication towards the public, which he said opened the door to populism. “We expect lower inflation, real wage growth for the first time in several years, and modest economic growth. I hope it will mark a turn for the better and give us all reason for greater optimism in the years to come,” the president concluded. President Pavel also devoted time to the 20th and 25th anniversaries of the country’s membership in the European Union and NATO, stressing their importance for the country’s security and economic development. The President emphasizes the need to take tangible actions to fulfill the commitment to adopt the euro. Despite the ongoing debates about the pros and cons of the euro for a country with an open and export-oriented economy, the common currency is deemed the logical future, notes the President. Last...

by Prague Morning Jan 01, 2024

Ukrainians in Czechia Could Help in Short-Staffed Health and Social Services

Ukrainian refugees who could work in the health sector and social services, two sectors facing long-standing labour shortage issues, are being sought out by the Czech Labour Ministry, Labour Minister Marian Jurečka (KDU-ČSL) said on Thursday. Jurečka (KDU-ČSL) assessed the success of refugee integration in the country at a press conference following this week’s government meeting, Czech News Agency reported. He said the Czech Republic is “the most successful country” in integrating newcomers, noting that of the 373,000 Ukrainian refugees (including children and pensioners) the Czech Republic has taken in, 123,000 people on protection visas are now employed. “Social services, like other fields, are in a situation where there is a lack of human resources… We are working on one of the possible solutions and trying to target and reach out to people from among Ukrainian refugees who could work in health and social services. We see this as the biggest reservoir of people today who could fill the gaps quite quickly,” Jurečka said. “Of course, we are also faced with the problem of education, or the question of its recognition, as well as the language barrier. We are also trying to work on this,” he added. According to the...

by Prague Morning Dec 29, 2023

Prague Residents Will Pay More for Water Next Year

In the upcoming year, Prague’s residents are set to experience a rise in their water bills. The water and sewage fees will increase to 144.88 crowns per cubic meter, marking a 13 percent upturn from the previous year. City councilors, in February 2022, approved a strategy extending until 2028, enabling the city to annually increase water and sewage fees by two percent above inflation. Consequently, this year witnessed a 13 percent escalation, with the amount climbing by nearly 17 crowns, from 128.18 crowns to 144.88 crowns per cubic meter. The municipal company Pražská vodohospodářská společnost (PVS) oversees Prague’s water management infrastructure, leasing it to Pražské vodovody a kanalizace (PVK) until 2028. Next year, PVS is set to collect approximately 3.55 billion crowns in rent, an increase of about 584 million from the previous year. The year-on-year increase translates to around 56 crowns per month per person for all water management services, totaling an annual increase of 671 crowns per person. According to the document approved by Prague councillors on Monday, the socially sustainable water price calculated for the city of Prague in 2024 is 235.47 crowns per cubic meter. Despite the increase, the price of water and sewage in Prague...

by Hena Takal Dec 21, 2023

Trust in Zelensky Plummets Among Czechs, Čaputová Most Trusted Foreign Politician

A recent survey by CVVM reveals a significant decline in trust in Ukrainian President Volodymyr Zelensky among Czech citizens. The survey, conducted from late September to early December, indicates that Zelensky’s trust rating has dropped by 21 percentage points with 28 percent expressing trust and 62 percent expressing distrust. This substantial decrease is the most significant among all foreign politicians included in the survey. In contrast, Slovak President Zuzana Čaputová is the most trusted foreign politician among Czechs, with a 52 percent trust rating and 35 percent expressing distrust. However, her image has seen a 17 percent increase in distrust compared to the previous survey in spring 2022. Russian President Vladimir Putin remains the least trusted foreign politician with only 12 percent expressing trust and a staggering 82 percent expressing distrust. While Putin’s ratings have remained relatively stable since the previous survey, the decline in trust for Zelensky stands out. The survey also notes less dramatic but noticeable shifts towards a worsening evaluation for French President Emmanuel Macron and U.S. President Joe Biden compared to Zelensky. Biden and Zelensky share the third position in terms of distrust with Belarusian leader Alexander Lukashenko leading the distrust ratings at 75 percent, followed...

by Prague Morning Dec 20, 2023

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