Economy Fiala: EU must handle tariff talks with US
Czech Prime Minister Petr Fiala said Sunday that any U.S. tariff increases must be negotiated at the EU level. Speaking on Czech Television, he noted existing tariff imbalances but stressed the need for open trade. U.S. President Donald Trump recently imposed new tariffs on Canada, Mexico, and China and signaled similar measures for the EU. The impact on Czechia remains uncertain, Fiala said.
Economy CNB likely to reduce key interest rate
Analysts expect the Czech National Bank (CNB) to return to easing its monetary policy, potentially lowering the base interest rate by 0.25 percentage points to 3.75 percent during Thursday's meeting. Most experts predict this move, although the decision may be influenced by preliminary January inflation data, which will be published on the same day. Economists argue that weaker domestic demand and slow economic growth support a rate cut.
POLITICS SPD aims to join government after elections
SPD chairman Tomio Okamura announced the party's intent to join the government following fall parliamentary elections, rejecting the idea of merely supporting a government from outside the cabinet. The SPD is negotiating electoral cooperation with the Oath party, Free Citizens' Party, and other entities. Okamura emphasized the goal of creating a stable coalition, with potential ministerial candidates yet to be named, though the SPD has expressed interest in the interior and justice ministries.
DEFENSE PM: Defense spending can rise to 3% of GDP
Czech Prime Minister Petr Fiala said today that it is realistic for the country to raise defense spending to 3 percent of GDP in the next parliamentary term if the current coalition remains in power. In the upcoming budget, he plans to increase spending to 2.1-2.2 percent of GDP, building a reserve to confidently meet the 2 percent threshold. He will discuss gradual increases and defense coordination at Monday’s EU summit in Brussels.
WEATHER Chilly weather forecast early this week
Temperatures in Šumava were frigid on Sunday morning, dropping to -20.1 degrees Celsius, according to meteorologists. Similar conditions were observed Saturday, with stark morning lows expected to persist into early next week. In Prague, highs today aren't expected to exceed 0 degrees Celsius. A slight weather shift is possible by Wednesday, with a chance of light snowfall, though no significant accumulation is forecast.
EU France backs Czech push to curb Russian diplomats
Czechia’s proposal to limit Russian diplomats’ movement in the Schengen area has gained support from France and Poland, Foreign Minister Jan Lipavský said. The plan aims to curb espionage and sabotage operations. While not yet unanimously backed, it has support from multiple EU states. Meanwhile, the EU’s 16th sanctions package targets Russia’s shadow fleet and aluminum exports but omits a ban on Russian liquefied natural gas.
Film Girl America takes Best Film at critics' awards
Girl America (Amerikánka) was named the best Czech film of 2024 by the Czech Film Critics’ Association, with its director Viktor Tauš also winning the prize for best director. The drama about a girl growing up in a communist-era orphanage earned 13 Czech Lion nominations. Year of the Widow (Rok vdovy) won best actress (Pavla Beretová) and screenplay. Waves (Vlny), the Czech Republic's official submission to the Academy Awards, did not receive a single award from local critics.
ECONOMY Milka chocolate bars to shrink in Czechia
Mondelez is reducing the size of classic Milka chocolate bars, such as milk, white, and hazelnut varieties, from 100 to 90 grams due to rising cocoa and energy costs. This change, confirmed for the Czech market, will soon appear on shelves. Other flavors, like strawberry, have already been smaller for some time. The move is a response to significant price hikes in cocoa in recent years.
DIPLOMACY Lipavský expects positive ties with the US
Czech Foreign Minister Jan Lipavský has expressed optimism about relations with the new US administration, citing defense spending, trade, and US policy on Russia as key issues. Ahead of his US visit next week, he emphasized the need for Europe to avoid a tariff war and manage potential trade impacts from US-China tensions. Lipavský will also attend Expo 2025 in Japan and visit Albania and Montenegro.
AID Czech humanitarian aid to Ukraine reached CZK 150m
The Czech Republic supported humanitarian projects in Ukraine worth CZK 150 million last year, focusing on healthcare, alternative housing, and energy, Foreign Minister Jan Lipavský said. He stressed that aid should be directed where it's most needed, including Ukraine and Moldova. Lipavský reaffirmed Czechia’s commitment to Ukraine’s defense, arguing that continued Western support is essential. He also backed stronger action against Russian hybrid threats and foreign influence.
SPORTS Czech tennis team tops South Korea in Davis Cup
The Czech Republic’s tennis team secured a 4-0 victory over South Korea in the Davis Cup qualification, advancing to the second phase. Tomáš Macháč and Jakub Menšík clinched the decisive doubles point on Saturday, beating Nam Ji-sung and Chung Yun-seong 6-3, 6-1. Maxim Mrva sealed the win with a 7-6, 7-6 victory over Shin San-hui. Czechia will face the U.S. in September, aiming for a spot in the final phase.
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