AGP Executive Report

NATO & Defence: Prime Minister Andrej Babiš met NATO chief Mark Rutte in Prague ahead of the July summit in Ankara, with defence spending and security fallout from the Middle East on the agenda—Rutte again warned that many allies are not paying enough for Ukraine. EU Budget Fight: At an informal European Council meeting, Babiš rejected proposals that would cut Czech funding for the 2028–2034 EU budget, calling the negotiations “a bumpy ride.” Energy Diplomacy: Babiš wrapped a Central Asia trip focused on securing oil and gas supplies, holding talks in Azerbaijan, Kazakhstan and Uzbekistan and pushing business deals tied to strategic raw materials. Industry & Tech: He also visited Siemens Healthineers in Germany, touring imaging and semiconductor-crystal production, while Czech President Petr Pavel sent a congratulatory letter to Azerbaijan’s Ilham Aliyev. Security Forum in Prague: GLOBSEC opened in Prague with 2,000 participants, putting Ukraine and European defence cooperation front and centre.

Israel-EU Standoff: Czech Foreign Minister Petr Macinka says Prague will block any further EU trade sanctions or suspension of the EU–Israel Association Agreement, even if it means standing alone—while a Czech–Israeli business forum drew 50+ Israeli firms and about 150 Czech participants. Ebola Watch: In eastern DR Congo, a rare Ebola strain is spreading fast; WHO warns a vaccine could take up to nine months as suspected cases top 600 and detection gaps widen, with two exposed Americans now in Europe for treatment. EU Market Rules: The European Commission has opened a consultation to review MiCA crypto rules, with feedback due by Aug. 31. Western Balkans Integration: Austria, Czechia, Italy, Slovakia and Slovenia back a “step-by-step” single-market access model for candidate countries, tied to meeting EU rules. Prague Growth Plan: Prague’s Metropolitan Plan clears a key hurdle, aiming for up to 350,000 new homes plus major transport upgrades. Czech Industry Export/Tech: Czech drone maker U&C lands a contract to supply UAS to US Army units in Europe.

Israel Sanctions Standoff: Czech Foreign Minister Petr Macinka says Prague will not back any new EU trade sanctions on Israel, after talks with Gideon Sa’ar and concerns over the latest EU package. EU Politics: The dispute sits inside a wider EU struggle over leverage and unity, with Kaja Kallas warning the bloc lacks bargaining power. Western Balkans Integration: Austria, Czechia, Italy, Slovakia and Slovenia push a “step-by-step” single-market model for candidate countries—sector by sector, with access potentially reversible if reforms slip. Security & Industry: U&C wins a contract to supply reconnaissance drones to the US Army in Europe, while KADEX and GLOBSEC plan a Europe–Asia security and defense forum in Prague. Prague Growth Plan: The city council approved a Metropolitan Plan enabling up to 350,000 new homes plus major transport upgrades. Inflation Watch: Eurozone inflation rose to 3% in April, driven by energy. Culture & Heritage: Limoges porcelain becomes the first craft to get EU-wide geographical protection under a new scheme.

Skoda Electric Push: Skoda has unveiled the production-ready Epiq, its smallest and most affordable EV, built on VW’s MEB+ platform and pitched for “price parity” with the petrol Kamiq in many markets. Hybrid Rollout: The Octavia is set to expand into full-hybrid and plug-in hybrid options, while diesel stays for now. Energy Upgrade: Czech power group Energo-Pro upgraded Turkey’s 280 MW Alpaslan 2 hydropower into a hybrid plant by adding a 40 MW solar PV system under the dam. Prague Business Tourism: Prague remains a top congress destination, ranking sixth globally in the ICCA list, with 5,166 events in 2025 and 850,157 delegates. Ukraine Costs Pressure: Kyiv’s transport fares could jump sharply from mid-July, potentially pushing the city into Europe’s top five most expensive pass costs. Film Market Signal: Uzbekistan announced a 25% film rebate at Cannes, aiming to boost film tourism and production interest. Labour Snapshot (Bulgaria): Bulgaria’s unemployment held steady at 5.27% in April 2026.

Skoda’s EV push: Skoda just unveiled the production-spec Epiq, its smallest and cheapest EV, with 38.5kWh/55kWh battery options, up to 440km range, and pricing aimed at undercutting the Kamiq—starting around €24,559 in Ireland. Prague’s business draw: Prague stayed near the top of the global meetings map, landing 6th in the ICCA congress-destination ranking, with 5,166 events in 2025 and 850,157 delegates. Roadworks that will bite: Major construction has started on the western Prague Ring (D0), with two bridges being replaced to prepare the six-lane expansion. Czech defense supply chain: U&C UAS (Ukraine-linked Czech firm) signed a contract to supply reconnaissance drones to the US Army in Europe. EU finance for Ukraine: The European Commission says the first €90bn Ukraine-loan payment is close—“very soon”—pending a few remaining documents. Labour signal from Bulgaria: Bulgaria’s unemployment held steady at 5.27% in April, with manufacturing among the biggest sources of vacancies.

Prague Ring Upgrade: ŘSD has started major works on the western Prague Ring, demolishing and replacing two D0 bridges to make room for the planned six-lane expansion between Třebonice and Slivenec, with widening targeted for 2027 and the key dismantling scheduled for the night of 13–14 June under full closure. Prague Heritage in Motion: The Royal Summer Palace (Belvedere) at Prague Castle is closing for a two-year, ~100 million CZK restoration, covering facades, interiors, lighting and historic chandeliers. Defense & Industry Links: Czech drone maker U&C UAS says it has signed a contract to supply advanced reconnaissance UAVs to U.S. Army units in Europe, aiming to boost base protection and ISR. Energy Aid to Ukraine: Ukraine’s Energy Ministry reports 3,209 units of power equipment have arrived since the start of 2026, with another 1,465 generators and 419 transformers expected. Cross-border Crime Crackdown: Europol supported an operation targeting a €240m fake medicines network across Eastern Europe, including call centres and warehouses in multiple countries.

Ukraine Energy Aid: Ukraine’s Energy Ministry says 3,209 units of power equipment have arrived since the start of 2026, with 2,000+ more expected, including generators, transformers and modular boiler units—shipments backed by a long list of EU and partner countries, including the Czech Republic. Prague Infrastructure: The Roads and Motorways Directorate has started work on the western Prague Ring, demolishing two D0 bridges and replacing them to enable the planned six-lane expansion, with widening targeted for 2027. Healthcare Access Pressure: Greece extends its strict “5/11” reimbursement rule to medicines entering via emergency access, swapping reference countries to include Czechia—raising fresh alarms about delays for patients. EU Culture & Industry: Slovakia pushes for a stronger European audiovisual sector at Cannes while the CEE Animation Forum in Pilsen (10–12 Nov) announces a new Council of Europe co-production award worth €50,000. Security & Industry Link: GLOBSEC Forum in Prague will bring ministers and business leaders together under the theme that security and economy are now inseparable.

Prague Open House: The city’s 12th annual Open House festival is under way, with free weekend access to 100+ normally closed sites—from historic palaces and villas to industrial heritage and sports venues—running through May 24, no advance registration needed. Energy Policy: Czechia has launched one of Europe’s biggest structured support schemes for renewable gas, with up to 90bn CZK earmarked to back biomethane and integrate it into the grid via competitive auctions. Security & Health: A Europe-wide operation has dismantled an international crime network accused of selling fake medicines and dietary supplements, with raids across Bulgaria, Greece, Hungary, Poland, Romania and Moldova. Motorsport: Czech Round drama in WorldSSP saw Valentin Debise (ZXMOTO) complete a Prague double, moving up to second in the riders’ standings. Sport & Culture: Eurovision 2026 ended in a major upset as Bulgaria’s Dara won Vienna with “Bangaranga,” while Czech club Sparta Praha is planning a new 5,000-seat football campus in Prague-Krč.

Ukraine-Russia Escalation: President Zelensky called Kyiv’s large-scale drone attack on Moscow “entirely justified,” as Russia claimed more than 1,000 drones were shot down and accused Ukraine of targeting civilians. Czech Sports & Industry Pulse: In Prague, French rider Valentin Debise won Race 1 at the Czech Round of the Supersport World Championship for China’s ZXMOTO, while AC Sparta Praha is pushing ahead with a new Krč football campus and up to a 5,000-seat UEFA-compliant stadium. Culture & Politics: Eurovision 2026 in Vienna ended with Bulgaria’s Dara winning “Bangaranga,” amid a major boycott tied to Israel’s participation. Aviation & Travel Economics: Emirates is removing 46 seats from its 615-seat A380 by converting two-class aircraft to a three-class layout, signaling a shift in airline yield strategy. Everyday Czech Life: “Samosběr” strawberry picking is starting earlier, with producers warning of a potentially shorter season and smaller berries after weather hits.

Eurovision Aftershock: Bulgaria won Eurovision 2026 in Vienna, beating Israel in a tense final that was already loaded with boycotts and backstage fallout over Israel’s participation—while Czech acts also suffered technical glitches during the show. Security Debate in Focus: Czech security analyst Tomáš Pojar says Europe must build not just defenses but also offensive capabilities to deter aggression and avoid being seen as “half defenseless.” Czech-Linked Defence Tech: North Vector Dynamics’ CM-70 low-cost interceptor missile has drawn Czech investment via the Tech Horizons fund, aiming to tackle drone and hypersonic threats with cheaper layers. Industry & Trade Signals: EU greenhouse-gas emissions rose 0.9% in Q4 2025, even as some sectors improved, and Czech inflation was confirmed at 2.5% in April. Sports & Tech Glimpse: At the Czech Round of the FIM Supersport World Championship, Valentin Debise took Race 1 for ZXMOTO, his fourth win of the season.

EU Beer Label Fight: Brussels is pushing a plan to standardize beer labeling, which could phase out the Czech °Plato “degree” system and shift focus to alcohol-content labels—potentially starting around 2031 and raising costs for small brewers. Motorsport Spotlight: At the Czech Round of the FIM Supersport World Championship, China’s ZXMOTO rider Valentin Debise won Race 1 for a fourth season victory, moving into third overall. Defense & Industry Links: The Tech Horizons fund backed Canada’s North Vector Dynamics with investment into the CM-70 low-cost interceptor missile concept. Regional Investment Pulse: Colliers reports Hungary leading CEE investment momentum in Q1 2026, with Czech capital also playing a growing role. Czech Business Abroad: Czech companies are set to be showcased at Serbia’s Novi Sad International Agricultural Fair, including livestock and feed-focused exhibitors. Security Update: The UN Security Council is set for an emergency meeting over escalating Russian strikes on Ukrainian civilians and infrastructure.

Czech Diplomacy in Focus: Deputy PM Mihai Popsoi met Czech FM Petr Macinka in Chisinau to reaffirm Moldova–Czech cooperation and support for Moldova’s EU path, with new projects flagged in governance, agriculture, energy security, border security and defense. Regional Trade & Industry: The International Agricultural Fair opened in Novi Sad with ~1,200 exhibitors from 40 countries, and Czech partners are showcasing livestock breeding, poultry processing and animal feed. Defense & Interoperability: The Czech Army is accrediting TITUS KOVVŠ/M2 command vehicles after Federated Cloud 2026 tests NATO communications and data sharing; NÚKIB also placed 4th with the Polish–Czech team at Locked Shields 2026. Tech & Investment Signals: Yokohama Rubber plans two new OTR tire plants in India and Mexico after acquiring Goodyear’s OTR business, while STARTEEPO Invest disclosed a 5.05% stake in Xerox. Culture & Soft Power: Eurovision buzz dominates Vienna as Cyprus’ Antigoni Buxton qualifies for the final with “Jalla,” while Czech sports fans also look ahead to FIBA 3x3 Women’s Series Shanghai 2026 featuring Czechia.

Eurovision in Vienna: Delta Goodrem’s “Eclipse” has surged after Thursday’s semi-final, while Czechia’s own entry is being treated as a long-shot in betting chatter as the final line-up locks in. EU foreign policy: Hungary’s post-Orbán shift is already moving Brussels—after Budapest dropped its veto, the EU approved a fresh sanctions package targeting Israeli settlers and groups. Czech defence & NATO integration: The Czech Army is pushing TITUS KOVVŠ/M2 command vehicles through accreditation during Federated Cloud 2026, aiming for smoother NATO interoperability. Cybersecurity: NÚKIB and the Polish-Czech team placed fourth at Locked Shields 2026, reinforcing the Czech push to stay sharp in large-scale cyber drills. Industry pulse: Czech car output keeps climbing—over 525,000 passenger cars in the first four months, with electrified models now at 41% of production. Tech & health: UroGen says UGN-103 hit 94.5% durability of response at six months in its Phase 3 UTOPIA trial, keeping a 2026 NDA submission on track.

US Postal Shake-up: The US Postmaster General floated ending six-days-a-week delivery and closing many local post offices, pushing the USPS toward a more for-profit model. Czech Energy & Industry: The EU has re-confirmed Czech hydrogen corridors as Projects of Common Interest, bringing PCI status back to the Czech-German Hydrogen Interconnector and the Central European Hydrogen Corridor. Nuclear Cooperation: Daewoo E&C is stepping up Dukovany nuclear cooperation, meeting IAEA officials and Czech industry leaders while supporting local firefighting capacity near the site. Defence Industrial Move: CSG has offered to buy a stake in KNDS, a politically sensitive bid as the tank-and-artillery group weighs an IPO. Cybersecurity Watch: US lawmakers warned of an AI-driven wave of vulnerability disclosures; the week also flagged BitLocker bypass issues and multiple reported breaches. Eurovision Buzz (Czech angle): Czechia qualified for the Eurovision 2026 final from Semi-Final 2, joining the weekend’s lineup. Inflation: Czech inflation was confirmed at 2.5% y/y in April, with fuel prices a key driver.

Critical Minerals Push: Kazakhstan’s Astana Mining & Metallurgy Congress (June 11–12) spotlights the shift from raw exports to processing, tech and investment as the EU and the US deepen critical-minerals ties. Czech Inflation Watch: Czech consumer prices rose 2.5% y/y in April, with fuels driving the acceleration and transport costs climbing. Manganese Economics: Euro Manganese’s Chvaletice project in the Czech Republic posts a positive PEA—48% operating margin and a post-tax NPV of $492m—aimed at easing Europe’s high-purity manganese bottleneck. Rail Disruption in Prague: Masarykovo nádraží reconstruction enters its toughest phase; from June, some lines terminate at Bubny and Hybernská-area works will start, with archaeology planned. Cloud Startup Funding: Prague’s Zerops raises €1.7m to expand cloud infrastructure in the US and Asia, including a Singapore data centre. Defence Industry: FNSS and Czech-Slovak CSG unveil the CFL-120 Karpat medium tank at IDEB 2026, pitching lighter 120mm firepower for faster NATO deployment. Policy & Security: B9 and Nordic allies back scaling up the transatlantic defence industrial base ahead of NATO talks. EU Pharma: The Critical Medicines Act deal gains broad support as Europe tries to reduce shortage risk and third-country dependence.

NATO Eastern-Flank Push: Leaders of the B9 and Nordic allies backed tighter air-and-missile defence after repeated Russian drone and airspace violations, calling for stronger coordination and defence-industry cooperation. Czech-Slovak Defence Industry: At IDEB 2026 in Bratislava, Türkiye’s FNSS and Czech-Slovak CSG unveiled the CFL-120 Karpat medium tank, pitching lighter, faster deployment with NATO-standard 120mm firepower. EU Medicines Security: The EU’s Critical Medicines Act provisional deal is being hailed as a milestone to reduce shortages and strengthen supply-chain resilience. Food Policy in Practice: Czech food policy is moving into school canteens, aiming to shift what children actually eat. Health Trend Watch: A new study finds obesity is rising faster in low- and middle-income countries, while high-income rates appear to be stabilising. EU Rail Upgrade: The Commission is advancing a “single-ticket” push to simplify cross-border rail bookings as geopolitical shocks drive demand for alternatives to air travel. Czechia in the Cyber Mix: A fraud-vulnerability ranking places Czechia among the more resilient European countries. BDS Spotlight: A European BDS coordinator says campaigns have grown rapidly since Gaza began, with more groups and bigger actions.