AGP Executive Report

Drought hits Czech farming: The Czech Agrarian Chamber warns agriculture could lose about CZK 20bn (roughly $960m) in revenue this year as heat waves and drought cut harvests to the worst in 15 years, while the government says it is preparing support measures and pushing modern tech at the Země živitelka fair. Power infrastructure demand rises: PFISTERER is expanding high-voltage connection manufacturing and qualification capacity, including a new HVDC qualification centre and larger production/logistics at Kadaň in the Czech Republic, citing stronger grid investment and renewable build-out. Construction expansion in the region: STRABAG PFS will enter Romania via acquisition of Brenneka Group firms Brenneka Install and Samivo Instal, adding building-services capabilities across HVAC, plumbing, electrical/automation, fire protection and municipal networks. Energy security under stress: EU-wide heat and record-low rivers are tightening electricity supply, with the European Commission warning conditions may stay tense for weeks even if no immediate shortages are expected. Agritech show floor: Preparations for the 95th National Ploughing Championships in Ireland continue, highlighting how machinery, livestock and food events are increasingly tied to resilience and cost pressures. Cyber risk in payments: Researchers describe a “Zombie Card” attack that can revive expired Visa contactless cards for in-store purchases by altering what a terminal reads, without breaking card cryptography.

Czech Drought Watch: Europe’s river low flows are now hitting industry and logistics, with Czechia named among the areas where drought conditions are “stable and critical,” raising risks for fuel deliveries, irrigation and electricity generation. Psychoactive Drug Crackdown: Czech authorities say violations were found at 63% of nearly 1,000 inspected retail outlets and distribution sites in the KORUND operation targeting kratom and synthetic psychoactive substances; almost 500,000 products were seized and hundreds of unlawful acts recorded. EU Industrial Rules: The EU’s new foreign direct investment screening regulation has entered into force, with Member States required to implement it by January 2028—important for cross-border deals in sensitive sectors. Procurement Politics: EU governments remain split over a “Buy European” push that would steer public contracts toward EU-made and low-carbon products, with major implications for steel, cement, aluminium, cars and batteries. Skoda in India: Skoda unveiled the Slavia sedan and signalled renewed focus on sedans in India, while also bringing back the Octavia RS and the all-new Superb. Czech Science & Industry: Czech and international researchers mapped key enzymes in wolfsbane and larkspur toxin pathways, while another Czech-led effort is advancing laser-driven muon imaging experiments with industrial and security applications.

Skoda India Push: Škoda is doubling down on sedans with the new Slavia, while also bringing back the Octavia RS and launching a new Superb for India—an attempt to buck the SUV-heavy market. Energy & Grid Resilience: Czechia’s largest BESS has entered service at Lipnice, adding storage capacity as Europe grapples with drought-driven power and logistics strain. Nuclear Stakes in Slovakia: ČEZ rejects corruption speculation tied to its JESS nuclear stake sale process, as ownership settlement is expected to move in September. Drought Pressure: Lake Zurich hits a record low, and reporting links Europe’s shrinking rivers to disruptions across industrial transport, irrigation and electricity—highlighting the operational risk for Central Europe. Industrial Tech for Security: Ideon Technologies joins a global consortium for laser-driven muon imaging experiments at ELI-NP near Bucharest, with potential uses in mining, critical infrastructure and cargo inspection. Defense Manufacturing: Czechoslovak Group secured Polish orders worth over €150m for Waran and Heron tactical vehicle chassis through 2029, supporting licensed production in Poland. Cyber & Fraud Watch: BBB Scam Tracker data shows ongoing online purchase scams in Minnesota cities, underscoring the wider fraud pressure on consumers and e-commerce.

Nuclear Modernisation: ČEZ says annual investment in its operating nuclear fleet will rise to CZK 10–12 billion as Dukovany and Temelín are prepared for potential service lives up to 80 years. Grid Storage: SUAS and EIF have commissioned the 57MW/120MWh BESS Lipnice battery near Vintířov, adding a major Czech storage asset that can stack ancillary services and market trading. Prague Public Transport Tech: Prague is testing energy-saving E-Ink passenger information displays on bus route 145, with touch-based timetable, map and fare info at selected stops. Automotive—India Push: Škoda is expanding in India with a sedan-focused strategy (new Slavia) and plans for limited EV imports next year, while also re-entering diesel with the Superb TDI and weighing CNG options. Water Infrastructure Cooperation: Armenia and the Czech Republic discussed expanding cooperation on reservoirs and wastewater treatment, including open tenders for Lake Sevan basin facilities. Cybersecurity for Media: A Czech-funded project in Ghana highlights rising digital threats to journalists, underscoring the need for stronger newsroom security practices.

Audiovisual Incentives in Focus: Prague Film School opened enrollment for 2026/27, pitching hands-on, small-cohort training as the Czech Republic rolls out updated audiovisual production incentives via the Czech Audiovisual Fund, with higher support rates for animation/digital and streamlined administration. Auto Industry: Skoda Auto is bringing diesel back to India after a five-year gap, unveiling the new Superb (150hp diesel, 7-speed DCT) ahead of a 2027 launch, alongside the Slavia and renewed Octavia RS. Cybersecurity & Critical Services: EU plans under the NIS2 rollout could classify even ice cream makers, Christmas light firms, and gum wholesalers as “critical infrastructure” for cybersecurity, extending protection and compliance duties beyond traditional utilities. Transport & Logistics: A Czech MEP warns rail freight in the EU keeps losing ground to road haulage, citing high wagon costs, fragmentation, and empty runs. Energy & Finance: Sustainable finance is increasingly treating nuclear-linked projects as “green,” with nuclear sustainable bond issuance accelerating since 2024. Security & Disinformation: A hacked Polish broadcaster reportedly seeded a fake Poland–Czech border crisis using a typosquatted clone and deepfake content, highlighting cross-border media manipulation risks.

Drought Response: The Czech government reactivated the National Coalition to Combat Drought, chaired by Prime Minister Andrej Babiš, after record-low rainfall since 1961 and severe groundwater stress affecting about 70% of monitored reserves, with the coalition tasked to review measures and prepare next steps. Energy Costs: A new country-by-country look shows gasoline and diesel prices rising sharply across Europe, with the Czech Republic among the biggest jumpers year-on-year. Transport Planning: Prague’s partial spatial development plan for the high-speed railway (“VRT Praha”) was approved, protecting corridors for the Praha-Vršovice to Praha-Běchovice section and adding a freight connection to ease capacity limits at the junction. Competition Watch: The Czech Competition Authority’s cartel fines against meal voucher issuers were definitively upheld, with Pluxee, Edenred and Up Česká republika facing a combined CZK 279.152m. Industry & Science: Czech and international researchers mapped key enzymes in wolfsbane and larkspur toxin pathways, a step that could support future medicinal compound development. Business & Tech: Arrow Electronics expanded IBM distribution coverage to include the Czech Republic, aiming to boost local channel partners for infrastructure, automation and data solutions.

Competition Authority: Czech Competition Authority chief Petr Mlsna has definitively confirmed CZK 279.152m in fines for a meal-voucher issuers cartel, rejecting appeals by Pluxee, Edenred and Up. Rail & Construction: The Czech government approved the “VRT Praha” partial spatial plan for the Prague high-speed railway, protecting corridors between Vršovice and Běchovice and adding a freight “Jahodnická” connection. Defence Manufacturing: ADMASYS CZ will present industrial 3D printing and scanning for defence sustainment at Future Forces in Prague (Oct 21–23). Energy & Water: A renewed National Coalition Against Drought will be led by PM Andrej Babiš, with drought experts from the Czech Academy of Sciences and water institutes onboard. Transport Electrification: Ruse municipality will buy two Czech-made electric buses for a cross-border Ruse–Giurgiu route, aiming for service by end-2027. Cybersecurity: A report says French EncroChat hacking malware was copied from GitHub, with Czech researchers involved in a “rehack” that may affect legal disputes. Innovation: Czech scientists at VSB-TUO demonstrated magnetically steered living bacterial microrobots that can remove microplastics from water.

Battery Supply Chains: Euro Manganese (Chvaletice, Czech Republic) signed a non-binding offtake term sheet with US cathode materials producer 6K Energy for high-purity electrolytic manganese metal, aiming to feed North American battery supply chains from 2028 after testing and preliminary qualification. Energy & Industry Resilience: Europe’s drought is worsening, with critically low river levels disrupting transport, agriculture and electricity generation; Czechia is named among the hardest-hit areas as heat and rainfall deficits bite. Environment & Public Safety: Belgium’s High Fens wildfire has forced large-scale evacuations, while Greece’s Salamis island saw two deaths and about 500 people evacuated as two blazes spread in hot, windy conditions. Housing Policy: Hungary’s government is pushing a major affordable rental push, arguing incentives and construction capacity are the key to easing a housing deficit and price pressure. Czech Research & Sustainability: Czech scientists report magnetic microrobots that can remove microplastics from water and soil, with lab results up to 94% removal for polystyrene in water. Digital Economy: The Czech National Bank kept rates at 3.75% in August, citing domestic inflation pressures but a “wait and see” stance as incoming data looks more reassuring. Security & Compliance: A Czech hospital fraud case tied to public procurement and EU subsidies continues to unfold after a major police raid at Prague’s Motol Hospital.

Wildfire Response in Europe: Belgium’s High Fens blaze burned about 30 sq km and triggered evacuations of around 600 people near Waimes and Bütgenbach, with 250+ responders and aircraft support; on Greece’s Salamina island, an elderly couple died as fires spread amid hot, dry weather. Drought Pressure on Industry: Europe’s rivers are hitting record lows, with the Czech Republic among drought-affected areas; the strain is already forcing operational limits in power generation and raising risks for water-dependent sectors. Czech Drought Funding: Prime Minister Andrej Babiš says the government will spend 3bn crowns this year and 4bn next year on drought measures via the Agriculture Ministry, including water networks, reservoirs, irrigation and landscape retention. Rail Tech Export: Hitachi Rail completed signalling upgrades at Ciulnița and Fetești stations in Romania on TEN-T Corridor 22, showing Czech-linked rail know-how moving across Central Europe. Housing Market Watch (Prague): New-build supply of larger flats (4+kk and above) is shrinking, pushing up price-per-square-metre and narrowing the gap versus smaller investment units. Defence Manufacturing (Slovakia, Czech supply chain): STV Machinery is preparing serial production of modernised BMP-1 hulls, with digitised design work requested by Czech STV Group.

Drought & Energy Security: Record-low Danube flows are forcing Hungary to cut output at Paks and pushing Romania to shut its last working reactor, spotlighting how cooling-water dependence is becoming a real climate risk for Central Europe’s nuclear plans. Wildfire Response: Belgium’s High Fens blaze has grown into the country’s biggest on record, prompting EU-coordinated aerial support including Czech aircraft and helicopters with water-bombing capacity. AI Governance & Industry Impact: Anthropic’s Claude now uses an invisible statistical watermark for EU compliance, but the rollout is already triggering subscription cancellations and debate over how “traceability” should work. Cybercrime: New Android malware “WindRelay” uses a phone as an NFC payment relay after a short scam call, while Trezor reports a breach affecting thousands of Bitcoin wallet users. Czech Business & Trade: Czech firms plan to support Ukraine’s autumn–winter energy recovery, and Czechia is also exploring Moldova supply deals in areas like textiles, furniture and food. Food Retail: A supermarket price war is credited with keeping Czech basic food items cheaper, with retailers selling below cost to draw shoppers.

Energy & Climate Risk: Record-low Danube levels are forcing Hungary to cut output at Paks and pushing Romania to shut its last working reactor, spotlighting how drought is turning river-cooled nuclear into a growing vulnerability. Czech-Ukraine Industry Support: Czech First Deputy PM Karel Havlíček says Czech companies will be sent to help Ukraine’s autumn–winter energy and infrastructure recovery, with 35 shipments of energy equipment already delivered. Healthcare Shortage: Czech hospitals are facing critically low blood reserves as summer holidays reduce donations, prompting an urgent nationwide appeal. Defence Supply Chain: Europe’s push to expand ammunition production is running into nitrocellulose shortages, with Czech firms now part of the build-out via acquisitions and new capacity plans. Trade & Manufacturing Links: Czech firms are exploring Moldova cooperation beyond food and furniture, including textile-related equipment and raw materials for footwear and packaging. Digital Security: A new Android scam uses WindRelay to turn phones into fake payment terminals, relaying NFC card data while the card is still in the victim’s hand. Transport & Logistics: ČD Cargo reached Denmark for the first time with a coke train hauled via a multi-system Siemens Vectron, showing rail freight liberalisation is now measurable in real routes.

Logistics & Rail Freight: ČD Cargo ran its first-ever revenue train to Denmark, hauling a 22-wagon coke consist from Ostrava to Padborg on a Siemens Vectron, then onward to Sweden—showing EU rail liberalisation is now measurable in real corridors. E-commerce Infrastructure: Foxpost (Packeta group) is investing about EUR 2m to double capacity at its Fót sorting facility, with an automated line lifting throughput to 12,000–14,000 parcels per hour from October. Energy & Industry Resilience: Drought and record-low rivers are forcing Romania to shut its last working reactor and cutting Hungary’s Paks output, reigniting the question of how Central Europe will cool nuclear plants as summers intensify. Defence Supply Chain: Europe’s push to expand ammunition capacity is running into a nitrocellulose supply gap; Czech firms are now part of the build-out, including acquisition of a Walsrode plant. Healthcare: Czech hospitals in Prague and Ostrava report critically low blood reserves, with the summer donor drop blamed for shortages. Science & Agriculture: Czech and US researchers mapped early steps in how wolfsbane and larkspur make toxic diterpenoid alkaloids, a potential lead for new medicines.

Logistics & Retail Fulfilment: Czech Packeta member Foxpost is investing about EUR 2m to double capacity at its Fót sorting facility, with an automated line lifting hourly throughput to 12,000–14,000 packages from 7,200 starting in October, alongside upgraded surveillance and scanning for better accuracy and traceability. Energy & Climate Risk: Record-low river levels are forcing Romania to shut its last working nuclear reactor and cutting Hungary’s Paks output to about 25%, reigniting the debate on how nuclear cooling can survive harsher droughts. Cybersecurity: Prague-based Trezor says a shipping-provider breach exposed personal data of thousands of customers, raising phishing risks; separately, researchers warn of WindRelay malware that turns Android phones into fake payment terminals via NFC relays. Aerospace & Defence Procurement: Colombia plans to buy two Czech Aircraft Industries L 410 NG light transports (about $33.1m) to replace aging C-212s. Industrial Policy & Trade: A White House report accuses the EU and several states, including the Czech Republic, of enabling China-linked tariff evasion via transshipment. Science & Biotech: Czech and US researchers mapped key enzymes in wolfsbane and larkspur toxin pathways, pointing to potential medicinal uses. Culture & Media Tech: Signal Festival Prague (15–18 Oct) expands its media-art “INSIDE” zone with immersive space works and a new interactive “Sound Robot.”

Drought and water stress: Czechia is set to spend 4 billion crowns on drought relief, focusing on water networks, landscape retention, small reservoirs and irrigation, with a special law on 20 planned reservoirs expected in autumn as rivers and cooling water become a growing industrial risk. Energy infrastructure under pressure: The Danube’s extreme low levels are forcing emergency measures across Central Europe, including Romania’s shutdown of a nuclear unit due to insufficient cooling water, underlining how climate shocks can quickly hit power supply. Prague aviation operations: Václav Havel Airport Prague will reopen its main runway on 14 August after months of modernization, ending the temporary rerouting that increased air traffic over densely populated areas. Rail electrification testing: Europe’s biggest single battery-electric multiple-unit order has entered certification at the VUZ test centre in Velim, a key step for Austria’s diesel phase-out plans. Cyber and digital security: Prague-based hardware wallet maker Trezor disclosed a data breach tied to a shipping provider, exposing order-related customer details and warning of increased phishing risk. Czech industry and innovation: Brno’s Gamebaze is taking Czech studios to Gamescom 2026, reinforcing the region’s push in game development. Food and agriculture hit: Reports across Europe show drought cutting yields from potatoes to corn and grapes, with farmers facing tighter irrigation rules and earlier harvests.

Humanoid robotics deal: NEURA Mobile Robots will absorb Bosch Rexroth’s ACTIVE Shuttle driverless transport system and its software (ACTIVE Fleet Manager and ROKIT) from Oct 1, 2026—another sign that Czech/European intralogistics is shifting toward shared “robot intelligence.” Rail electrification milestone: Europe’s biggest battery-train order by unit count (Stadler FLIRT Akku for ÖBB) has arrived at the VUZ Test Centre in Velim, starting EU certification that could help Austria phase out diesel on rural lines. Energy drought shock: Record-low Danube levels forced Romania to disconnect its last operating nuclear reactor for cooling-water reasons, while Hungary cut Paks output—highlighting how climate stress is now a direct industrial risk for baseload power. Crypto security in the Czech spotlight: Prague-based Trezor disclosed a breach via a shipping provider, exposing order data for 13,689 customers and warning of increased phishing attempts. Solar progress in the region: Rezolv’s Dama Solar (about 1 GW) in western Romania received regulator establishment authorization for its first phase, moving it closer to construction. Defence manufacturing supply chain: CSG Group will deliver hundreds of chassis worth over EUR 150m to Poland’s HSW for Waran 4×4 and Heron 6×6 tactical vehicles, with deliveries running to end-2029. Cybercrime watch: Estonia’s customs and tax authorities report narcotics and psychotropic substances increasingly moving through postal and courier shipments, with Czechia among key origin routes. Local infrastructure: Prague’s Kbelská Street renovation is set to fully reopen to traffic about two days early. Food industry expansion: Vafo (pet food) bought Germany’s Pets Deli to strengthen its D2C and digital growth platform.

Energy & Infrastructure Deal: Transgaz plans to take an equity stake in US LNG terminal developer Argent LNG, aiming to secure long-term access to U.S. gas and support LNG transit via Romania toward Moldova, Ukraine and onward to the Czech Republic and Central Europe. Urban Resilience & Permitting: Brno residents say a heat-and-climate commitment fell apart on Slovákova after sewer works began with only two weeks’ notice and a mature ginkgo tree was felled without clear communication, sparking anger over how projects are approved and monitored. Transport Works: Prague’s Kbelská Street renovation will fully reopen to traffic on Thursday evening, about two days ahead of the original schedule. Cybersecurity Readiness: Czech authorities are asking citizens to stress test the eDoklady digital ID app ahead of municipal elections to avoid last year’s login failures under heavy demand. Agriculture Under Drought: Feed shortages linked to drought are forcing Czech livestock farmers to sell cattle, with the private farmers’ association criticizing the Ministry of Agriculture’s response as inadequate. Cross-border Security: Czechia signals support for de-escalation and regional stability while backing energy security and trade flows, in talks with Kuwait’s ambassador. Science & Industry: Czech and international researchers mapped key enzymes in wolfsbane and larkspur biosynthesis, a step toward understanding toxic diterpenoid alkaloids with potential medicinal uses.