environment Government moves to block EU's ETS 2
The Czech cabinet today rejected the ETS 2 system of emission allowances covering carbon dioxide emissions from buildings and road transport, Prime Minister Andrej Babiš said after a government meeting. The cabinet will seek allies in the European Parliament to push for the scheme’s abolition at EU level. According to a government-commissioned analysis, the system could cost Czech households and businesses up to CZK 205 billion between 2027 and 2032.
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migration Coalition confirms rejection of Migration Pact
The ANO, SPD and Motorists-led government has rejected the EU migration pact, Prime Minister Andrej Babiš said after a cabinet meeting Tuesday afternoon. The cabinet plans to reflect this stance in its policy statement and prepare new migration and asylum legislation. The pact, approved last year, is due to enter into force in June 2026, while stricter asylum rules adopted earlier will take effect in January.
taxes Flat-rate taxes for self-employed to rise
The monthly flat tax advance for self-employed workers in the first band will rise next year by CZK 1,268 to CZK 9,984 while payments in the second and third bands will remain unchanged, the Financial Administration confired this afternoon. The increase reflects higher mandatory pension and health contributions. Self-employed workers have until Jan. 12 to enter or leave the flat-rate regime or change their tax band.
crime Customs busts illegal cigarette factory
Customs officers uncovered a large illegal cigarette factory in southern Moravia, seizing more than 15 million cigarettes and 32 tonnes of tobacco and arresting 20 people. Authorities estimate excise tax losses at nearly CZK 326.5 million. The operation involved more than 300 customs and police officers and targeted an organized group distributing cigarettes across the EU. Police said that mainly non-Czechs were behind the criminal act.
education Pavel urges wider access to universities
President Petr Pavel said Czechia needs to improve access to higher education for students from low-income families, speaking at the appointment of university professors at Prague’s Karolinum. He pointed to structural problems including underfunding and low tertiary attainment compared with the EU. Pavel warned that the share of university graduates aged 25 to 34 has been falling in Czechia even as the EU average continues to rise.
📊 Poll of the day: Americans in Czechia are reacting strongly to a proposed act in the U.S. that would ban dual citizenship.



