AGP Executive Report

Construction & Trade Fairs: Big 5 Construct Saudi returns to Riyadh (30 Aug–2 Sep) with a heavier focus on early-stage execution, heavy construction, machinery, concrete/cement, HVACR and facilities management—drawing 1,000+ exhibitors from 50+ countries, including Czech firms. Defense Industry: PBS Velká Bíteš is scaling drone/missile jet-engine production with a Czech-Ukrainian program with Ivchenko-Progress, preparing output for half of the AI-PBS-350 engine in the Czech Republic. Retail & Mobility Infrastructure: Prague 7 opened two free, covered basketball and streetball courts under Barikádníků Bridge, while tram services to Prague Castle will partially resume one week early (from 11 July), though diversions continue until mid-July. Food Delivery Market: Uber Eats is pausing launches in Greece plus Austria, Norway, the Czech Republic and Romania, citing focus on existing markets—while the move may also reduce EU antitrust friction around a potential Delivery Hero deal. Energy & Industry Context: EU ETS revenues are being routed into clean-energy projects across multiple states, reinforcing the region’s push to fund decarbonisation via market mechanisms.

Defense Industry in Focus: A Czech-Ukrainian jet-engine push is scaling up at PBS Velká Bíteš, with the AI-PBS-350 program preparing Czech production of half of the engine order as output is set to surge. EU Security & Industry: Czech President Petr Pavel says Europe must take more responsibility for defence ahead of the Ankara NATO summit, calling for higher spending and faster capability build-up, including air and missile defence. NATO Summit Watch: Türkiye will host the NATO summit in Ankara for the first time in 22 years, with burden-sharing and a defence industry forum on the agenda. EU Energy Mix: Eurostat data shows renewables and natural gas supply rising in the EU while coal and petroleum keep falling, with renewables still leading electricity generation. Prague Infrastructure: Two covered basketball and streetball courts opened under Barikádníků Bridge in Prague 7, free and reservation-free, as part of district revitalisation. Transport Disruption: Prague’s tram line to Prague Castle will reopen one week earlier than planned, though diversions remain until mid-July. Border Tech Pressure: Airport bosses warn the EU’s Entry/Exit System could trigger “disastrous” holiday queues, arguing the design—not just rollout—drives delays. Trade Signals for Industry: An EU–US trade study flags a record in goods flows but points to damage in manufacturing, especially Germany’s auto sector. Local Business Finance: AutoWallis plans to retain 2025 profits to fund regional growth after shareholder approval. Food Safety: A salmonella outbreak linked to flavoured instant noodles continues to spread across multiple European countries.

Defence & Industry: Czech President Petr Pavel urged Europe to take more responsibility for its own defence ahead of the NATO summit in Ankara, calling for concrete progress in defence spending, stronger defence industries, and upgrades in air/missile defence and military mobility. Energy Transition: Eurostat data points to a shifting EU energy mix: natural gas supply rose while coal and petroleum fell, and renewables kept leading electricity generation (about 47% in Q1 2026). Heat & Risk Management: France reported 2,025 heat-related excess deaths in June, while broader coverage highlights Europe’s deadly 2026 heatwave and rising pressure on preparedness. Food Safety: A salmonella outbreak linked to flavoured instant noodles has sickened 100+ people across 14 countries, including Czechia, raising traceability and enforcement questions. Central Banking & Gold: Central banks added 41 tonnes of gold in May, with the Czech National Bank buying for 39 straight months as official-sector demand stays strong. EU Trade Watch: An EU–US trade study flags a record €875bn goods trade in 2025 but warns of damage to European manufacturing, especially autos. Hydrogen Tech: Switzerland’s Hydrogen Grand Prix final in Bulle drew 85 teams from 20+ countries, including Czech and Slovak participants, underscoring hydrogen talent pipelines.

EU–US Trade Watch: A new study says EU–US goods trade hit a record €875bn in 2025, but the headline masks damage to European industry—especially autos, where EU car and parts exports to the US fell 20.4% (Germany down 18.9%), even as some countries (including Czechia, +5.1%) grew. Food Safety: Europe is dealing with a salmonella-linked instant noodle scare: authorities report 100+ cases across 14 countries, with Czechia among those affected, and most patients reportedly children and young adults. Energy & Resilience: A Czech survey finds people are still not very worried about major blackouts, yet preparedness is patchy—only about one in eight households has backup power and more than a third lack enough drinking water for even 24 hours. Hydrogen Tech (Czech talent in focus): The Hydrogen Grand Prix world final in Switzerland drew young teams from 20+ countries, including Czech and Slovak participants, highlighting the region’s push for hydrogen skills and innovation. Czech Culture & Industry: Karlovy Vary’s Future Frames program is showcasing next-gen European film school talent with industry support, including a Czech director turning festival trailers into a lasting institution.

EU Energy Funding: The European Commission and EIB approved a €2.5bn Modernisation Fund package for 51 energy projects across 11 states, with Czechia set to receive €516.8m to modernise energy systems and cut emissions. Crypto Regulation: ESMA expanded its MiCA interim register by 37 newly authorised crypto-asset service providers, lifting the total to 280 after the July 1 transition end; Cyprus led the batch with six approvals, while Czechia added four. Digital Identity Investment: Prague-based Wultra raised €6.8m to scale post-quantum login and credential protection for banks and fintechs, targeting the EU Digital Identity Wallet rollout. Industrial Energy & Refining: ORLEN Unipetrol’s Kralupy refinery marked 50 years of operations, processing 3.3m tonnes of crude annually and investing CZK 2bn to upgrade key units and improve reliability. Transport & Trade Friction: Canada Post will suspend parcels to a dozen EU countries, including Czechia, due to the EU’s new three-euro customs duty on low-value imports. Defence Cooperation: Czech and Bulgarian sides discussed expanding bilateral defence cooperation and industry experience, while Czechia and Hungary also began preparations for a possible joint government summit in October. Army & Security: The Bangladesh Army chief returned after official visits to Czech Republic and Slovakia, including meetings with defence and military officials and visits to industry facilities. Public Health Heatwave: A deadly European heatwave has driven excess deaths in France, Belgium and the Netherlands, with authorities warning figures may rise further.

Crypto Regulation in Action: ESMA has expanded the EU’s MiCA crypto-asset service provider registry by 37 firms after the transition window ended, lifting the total to 280 authorized providers and shifting the market into active enforcement. Digital Identity Security: Prague-based Wultra raised €6.8m to scale post-quantum login protection and accelerate European Digital Identity Wallet capabilities. Energy & Industry: ORLEN Unipetrol’s Kralupy refinery marks 50 years, highlighting upgrades and sustainable aviation fuel blending. Nuclear Cooperation: Finland’s regulator published a joint early review summary for Steady Energy’s LDR-50, involving Czech, Polish, Swedish and Ukrainian authorities. EV Policy Impact: Analysis says hitting EU EV targets could cut oil imports by 190m barrels a year and save over €10bn. Trade Reality Check: A study finds EU–US goods trade hit a record €875bn in 2025, but masks export declines—especially in autos, where car and parts exports to the US fell 20.4%, with Germany down 18.9%. Czech Business Watch: Czech tycoons Michal Strnad and Pavel Tykac are reportedly interested in buying part of Sinochem’s stake in Pirelli. Public Health Pressure: A Europe-wide heatwave is linked to thousands of excess deaths, with France, Belgium and the Netherlands reporting 3,700+ so far.

Food Safety: An EU-linked salmonella outbreak has reached 14 European countries with 106 reported cases since Nov 2025, mostly children and young adults, tied to flavoured noodle products distributed from a suspected Ukraine producer. Prague Transport: Prague’s tram line between Lazarská and Újezd will be fully suspended from 18 July to 10 August 2026 for safety-critical track-bed reconstruction, with road traffic changes in the city centre. Defence & Industry: The Czech Armed Forces get a new Chief of the General Staff, Lt Gen Miroslav Hlaváč, as the country also pushes heavy-ground modernization with CV90 MkIV and Leopard 2A8 platforms. EU Energy Funding: The European Commission and EIB disburse €2.5bn from the Modernisation Fund for 51 energy projects, with Czechia receiving €516.8m for efficiency, renewables and grid upgrades. Czech Manufacturing/Logistics for Defence: NATO’s Host Nation Support role for the Czech Republic is highlighted as a key transit hub for allied forces moving to the eastern flank. Local Economy & Skills: KVIFF Industry Days expands its support for earlier-stage film projects, including Central European cooperation and alternative financing models. Czech Tech/Jobs: Czech PMI reportedly improves to 53.9 in June, the best since April 2022. Arms Market: Franco-German tank maker KNDS postpones its IPO citing defence-sector market volatility. Czech Construction Watch: Prague’s major tram works also include renewed tracks and infrastructure modernization around Lazarská and Národní třída. Czech Education: NYSD and UNYP in Prague launch a dual-credential fashion design management pathway starting in fall 2027.

NATO Summit Prep: Czech President Petr Pavel has received a government mandate for the Ankara NATO summit, with the plan to back Ukraine and push defense spending toward 5% of GDP by 2035, prioritising air and anti-drone defence. EU Clean Energy Funding: The European Commission and EIB disbursed €2.5bn from the Modernisation Fund for 51 projects across 11 EU states, including Czechia (€516.8m) for district heating decarbonisation and industrial efficiency. Defence Industry Markets: Franco-German tank maker KNDS postponed its planned IPO, blaming volatility in the European defence sector. Czech Manufacturing Pulse: Czech manufacturing PMI rose to 53.9 in June, the best since April 2022, with stronger output and new orders, though supplier delays still weigh on capacity. Food Safety Shock: A salmonella outbreak linked to flavoured instant noodles has spread across 14 countries, with cases reported in the Czech Republic and many patients hospitalised, especially children. Energy Transition Watch: Renewables generated 45.5% of EU electricity in Q1 2026; Czechia recorded one of the lowest shares at 12.7%. Accessibility Manufacturing Deal: Savaria agreed to acquire Italy’s Vipal, adding residential lifts and elevator manufacturing capacity in Europe. Logistics/Travel Rules: Delta flagged ETIAS pre-travel authorisation changes for non-EU travellers in late 2026, affecting Schengen short stays.

EU Border & Aviation: EU’s Entry/Exit System is hitting summer travel hard, with airlines and airports warning of five-hour queues and half-empty departures, urging the Commission to intervene before peak season worsens. Czech Manufacturing Pulse: Czech factories expanded at the fastest pace in over four years in June, with the manufacturing PMI rising to 53.9 on stronger output and a sharper jump in new orders. Energy & Power Mix: Eurostat shows renewables reached 45.5% of EU electricity generation in Q1 2026 (wind 44.9%, hydropower 28%, solar 17.3%); the Czech Republic sits at 12.7%, among the lowest EU shares. Slovakia Nuclear Stakes: Slovakia is considering buying a 17% stake in Slovenské elektrárne, with the price potentially up to €3bn, tying the decision to Mochovce unit 4 commissioning timelines. Czech-Linked Dealmaking: Amaneos has completed the acquisition of Magna’s European automotive lighting business, adding manufacturing in Italy and Poland plus an engineering hub in Ostrava. AI & Finance: Prague’s EquiLibre raised Series A funding at a $500m+ valuation to scale AI trading agents already handling billions monthly. Security & Industry Risk: A Monaco bombing is linked by experts to Ukrainian scam call centres operating from Dnipro, raising concerns about cross-border enforcement gaps.

Renewables Watch: Eurostat data show EU renewable electricity rose to 45.5% of total generation in Q1 2026 (up from 42.7% a year earlier), led by wind (44.9% of renewables) and hydropower (28%). Energy Gap for Czechia: The Czech Republic sits at the bottom among EU states with just 12.7% renewables in Q1 2026, underlining storage and grid challenges. Industrial Link to Germany: A German industrial slowdown is starting to hit Czech factories, with EY citing 120,000 German job cuts in 2025 and expectations of more pressure in 2026—especially for automotive and machinery supply chains. Politics & Industry: Czech PM Andrej Babiš said he received a CZK 4.25bn (€200m) Agrofert dividend before moving the firm into a trust, as EU conflict-of-interest scrutiny continues. Defense Procurement: Rafael secured a major Spyder air-defense export deal with Romania worth just over €2bn, with Czech-made Spyder already in service. Film Industry Funding: Ji.hlava opened a €110,000 co-production support call (up to €40,000 per project) for Central and Eastern European documentary/hybrid films. Czech Corporate News: Škoda Group reported 2025 orders of nearly €1.8bn and a strong EBITDA rebound.

Competition Watch: The Czech Office for the Protection of Competition published its 2025 annual report, flagging nearly CZK 500m in the highest fines seen in a decade, including a major cartel case tied to public tenders for the Czech Railway Administration and additional sanctions in meal-voucher markets, alongside 573 procurement-related proceedings. Energy & Industry: Slovakia’s Mochovce 4 has begun loading nuclear fuel, starting active commissioning after regulator approval, with staged power increases and full-power tests ahead. Defense Supply Chain: Bell Textron won a $43.2m contract for advanced helicopter parts (gearboxes) destined for the Czech Republic under Foreign Military Sales. Digital & Business Tech: DIGMATIX expanded into Central Europe by acquiring Czech CRM specialist LLP CRM and Romanian Dynamics 365 partner ELIAN SOLUTIONS, boosting its Microsoft portfolio. Textiles & Manufacturing: MIC launched a new Exté Silk yarn and reported growth, with operations and sales spanning the Czech Republic and wider Europe. Logistics & Trade: Canada Post temporarily suspended parcels to several EU countries including the Czech Republic after the EU introduced a low-value customs duty from July 1. Public Health Shock: Europe’s record heatwave kept disrupting infrastructure and health systems, with WHO reporting over 1,300 excess deaths linked to extreme temperatures.

Competition & Procurement: The Czech Office for the Protection of Competition says it levied nearly CZK 500m in 2025—its biggest fines in a decade—mainly for prohibited horizontal agreements, including a cartel case tied to public tenders for the Czech Railway Administration (final fines ~CZK 130m) and additional sanctions for meal voucher issuers (~CZK 280m, not yet final). It also opened 573 first-instance procurement proceedings, with complaint-driven cases up 37% year on year. Defense Industry: Exosens (with BROLIS) secured a Czech Armed Forces order for about 17,000 image intensifier tubes for night-vision equipment, running through 2032, underscoring Czech/NATO demand for sovereign, long-term defense supply. Tech & Business Services: DIGMATIX is expanding in Central Europe by acquiring Czech CRM specialist LLP CRM and Romanian Microsoft Dynamics 365 partner ELIAN SOLUTIONS, aiming to strengthen Microsoft Business Applications expertise across the region. Food Safety: COCERAL’s 2025 mycotoxin management survey (covering ~86m tonnes traded) highlights continued industry focus on reducing Fusarium-related risks through better seeds, adapted treatments and good practices.

Heatwave Shock to Czech Industry & Infrastructure: Europe’s record-breaking heat is now hitting the Czech Republic and wider Central Europe hard, with temperatures above 40°C and knock-on effects for power, transport and workplaces; Ukraine has already ordered emergency power cuts as its grid struggles, a reminder that heat resilience is becoming an industrial issue, not just a public-health one. Public Media Funding Fight in Prague: Czech opposition and media experts are pushing back against a government plan to abolish broadcasting licence fees from January 2027 and replace them with state budget funding, warning it could weaken Czech Television and Czech Radio and breach EU media rules. EU Cross-Border Crime Crackdown: EPPO reports arrests across Germany, Poland and Latvia in a diesel VAT fraud case involving “designer fuels” routed through Czechia among other countries, underlining ongoing supply-chain and tax risks for logistics and energy markets. Defense Industrial News: Romania is set to acquire Rafael’s SPYDER air-defense systems in a deal worth over €2bn, with industrial cooperation and local production in Romania—another signal of how European procurement is reshaping regional manufacturing. Aviation/Training Supply Chain: Czech-Austrian DART-450 is mentioned in a comparison as Russia promotes its UTS-800 trainer, stressing low operating costs and production independence—relevant for training aircraft procurement debates.

Heatwave Health Crisis: Europe’s early-summer heatwave is worsening fast, with Italy adding more “red alert” cities (22 today, 25 tomorrow) and temperatures pushing past 40°C in Germany, the Czech Republic, Poland and Hungary; the WHO links the event to over 1,300 excess deaths since June 21, while France alone reports nearly 1,000 excess deaths and dozens of drownings. Energy & Industry Resilience: The same heat is straining power and infrastructure—Hungary curbed output at Paks due to a warming Danube, and Austria warned rail disruption risks as tracks warp. EU Trade Rules: From July 1, the EU ends the de minimis duty-free threshold for parcels under 150 euros, replacing it with a new three-euro customs tax system (plus an additional two-euro charge later), changing costs for small shipments. Digital Identity & Finance Tech: Prague-based Wultra raised €6.8m Series A to scale post-quantum authentication and digital identity wallet capabilities for the EU Digital Identity Wallet rollout. Defense & Security: NATO parliamentary leaders in Istanbul urged stronger defense capabilities, alliance unity and continued support for Ukraine. Humanitarian Response: Czech rescue teams continue searching earthquake rubble in Venezuela after a minor aftershock, with one dog treated on site.

Heatwave Impact on Industry & Infrastructure: Europe’s record early-summer heat has been linked to 1,300+ excess deaths since June 21, with France reporting ~1,000 more deaths than expected and disruptions to power, transport and healthcare as temperatures topped records in Germany, Poland and the Czech Republic. Public-Sector Response: Hungary moved public employees to work-from-home where possible and imposed emergency measures like water-use restrictions and rail speed limits. Energy & Water Stress: Reports highlight cooling-water strain at nuclear facilities and depleted rivers affecting electricity generation and agriculture. Czech Manufacturing & Supply Chains: Rolls-Royce SMR plans a £12m Derby manufacturing development centre to support reactor production in the UK, Czechia and Sweden, aiming to build specialist processes and skills. Film Production Capacity: Barrandov Studio Prague opened two new modern sound stages (studios 11 and 12), adding capacity for large-scale Czech and international productions. Defense Procurement: Rafael signed a deal with Romania for Spyder air-defense systems, with the system already in Czechia.

Heatwave Shock to Industry and Infrastructure: Europe’s record-breaking heatwave is already hitting power generation, transport and agriculture, with France reporting about 1,000 excess deaths and the WHO warning that 150 million people are living under extreme heat as grids buckle and healthcare systems strain; temperatures topped records across Austria, the Czech Republic, Germany and Poland, while storms disrupted travel and power supplies. Czech Rail/City Disruptions: In Germany, extreme heat forced reduced train services and suspended trams in Leipzig, while in the Czech Republic temperatures reached new highs, underscoring how Central European infrastructure is struggling with climate-driven stress. Czech Defense Export Spotlight: Rafael Advanced Defense Systems signed a major deal with Romania’s Ministry of National Defense for the Spyder air-defense system, valued at over €2bn, with the system already in operational use including in Czechia. Prague Metro Design Push: Prague’s Metro D is moving toward new stations: architectural and art competitions are planned for Písnice (full interior design) and Pankrác (major artwork), with winners expected before year-end. Taiwan–Europe Trade Link: Taiwan’s foreign minister led a trade delegation to Poland and Italy and announced plans for Mandarin language centers, with the first hubs including the Czech Republic.