AGP Executive Report

Energy Security: Saudi Aramco reportedly cancelled or delayed crude shipments to several European refineries after an attack shut the East West pipeline, forcing refiners to scramble for alternative supply. Energy Transition: Uniper agreed to sell a 20% stake in the OPAL gas pipeline to Hy24, a hydrogen-focused investor, as part of EU state-aid conditions; OPAL runs from Germany to the Czech border. Industrial Tech & Mobility: Volkswagen’s “Mission Efficiency” EV set three world records on an ID Polo-based near-production concept, including a 0.158 Cd drag figure and a 1,278 km efficiency run via Poznań and Olomouc. Czech Industry Abroad: Czech firms discussed shipbuilding cooperation with Azerbaijan, including potential use of Czech equipment at Baku Shipyard. Prague Industrial Heritage: Trigema is turning a preserved 50-metre distillery chimney in Smíchov into a 360-degree observation deck via a glass elevator. EU Infrastructure & Safety: SaverOne completed the first phase of installing its driver distraction prevention system in Cemex Germany’s trucks, with further fleet rollout planned. Business & Regulation: SÚKL issued a positive reimbursement decision in the Czech Republic for Er-Kim’s Vafseo (vadadustat) for dialysis patients with symptomatic anaemia. Transport & Logistics: Smartwings’ sale to Pegasus received Czech competition approval. Security & Disruption: A Czech Republic bus-garage arson case is linked to a wider EU sabotage network allegedly coordinated from Russia.

EV Efficiency Race: Volkswagen’s Mission Efficiency prototype—based on MEB+ and using a 54.9 kWh battery—has set three road-approved world records, including a 0.158 drag coefficient and a 1,278 km Wolfsburg-to-Vienna run via Poland and Olomouc in the Czech Republic at 7.51 kWh/100 km (charged once). Czech Industry & Infrastructure: Prague’s Industrial Palace is set to reopen after 18 years and a multi-billion-crown restoration, with guided tours and access to normally closed areas at the Prague Exhibition Grounds. Competition Oversight: The Czech competition authority (UOHS) has provisionally cleared Pegasus’s planned acquisition of Czech Airlines and Smartwings, with remedies including slot transfers on the Prague–Antalya route. Rail Safety Training: Rescue tanks from the Railway Administration’s Fire and Rescue Service and the State Material Reserves Administration trained together at the Milovice military site, adding VT-55 recovery tanks to the exercise. Energy Markets: Uniper agreed to sell its 20% OPAL gas pipeline stake to Hy24 to meet EU state-aid conditions; OPAL links Germany to Brandov in the Czech Republic. Mobility & Logistics Tech: MAN Truck & Bus premiered the next-gen eTGX with headline 720 km range and a short charge “window” aimed at making long-haul electrification practical.

EV Efficiency Race: Volkswagen unveiled the Mission Efficiency, a near-production electric coupé using ID. Polo tech, claiming three world records for aerodynamics and energy use, including a 1,278 km run from Wolfsburg via Poland and Czechia to Vienna with just one charge stop. Aviation & Competition: Czech competition authority UOHS provisionally cleared Pegasus’s planned acquisition of Czech Airlines and Smartwings, with remedies including slot transfers on the Prague–Antalya route. Rail Freight Watch: Eurostat data show EU rail freight fell 1.8% in 2025 for the fourth straight year, with declines across many member states and Germany still the biggest market. Energy Policy: Czechia is preparing to cap electricity prices if costs rise further, as the government weighs support measures amid volatility. Transport Resilience Training: Railway Administration and the State Material Reserves Administration ran joint recovery-tank drills in Milovice, highlighting cross-agency emergency readiness. Hospitality & Tourism: CzechTourism promoted its “feel free” travel campaign at ATM 2026, pushing tailored experiences for Middle East visitors. Nuclear Supply Chain: Sweden picked Samsung C&T and GVH Hitachi Nuclear Energy as strategic partners to develop four BWRX-300 SMRs under Studsvik’s ReFirm programme. Cyber Compliance: ENISA’s Cyber Resilience Act Single Reporting Platform is now live, with AISLE supporting the secure release ahead of the first reporting deadline.

Energy Policy: Czech Industry Minister Karel Havlíček says the government is ready to cap electricity prices for producers and suppliers if costs keep rising, and will coordinate fuel-price steps with V4 partners. Rail Manufacturing: Škoda Group has started production of new electric multiple units for Arriva in Czechia, with service planned from December 2028 on key Prague–Pilsen–Cheb and Prague–Beroun–Pilsen–Klatovy lines. Nuclear & Supply Chains: Reports discuss possible US plans for large nuclear projects and a stake in Westinghouse, with implications for reactor export opportunities and IP issues. Pharma Pricing Pressure: A Lancet modelling study warns US Medicare “most-favoured-nation” pricing could push drugmakers to raise EU prices or delay launches, including in Czechia. Climate & Industry Dialogue: Prague hosts Central Europe’s first Climate Week, mixing energy, agriculture, urban resilience and a competitiveness summit. Training & Creative Industry: CEE Animation Workshop 2027 opens applications, offering modules across 2027 and links to Czechia’s animation industry. E-commerce Rules: Hungary’s new EU customs rules are cooling demand for Temu, Shein and AliExpress as shoppers pay closer attention to final prices. Culture & Cities: “Cinema Days” brings 192 cinemas and 467 screens across 141 towns to a CZK 100 ticket weekend. Aviation Partnership: Smartwings and TUI extend their flight partnership for three more years, while Smartwings expands Prague winter routes.

Rail & Rolling Stock: Škoda has started production of new electric multiple units for Arriva in Czechia, with 22 EMU200/EMU300 sets (3- and 4-car) built in Ostrava and planned to enter service from December 2028 on key Prague–Pilsen–Cheb and Prague–Beroun–Pilsen lines. Energy Policy: Czech Industry Minister Karel Havlíček says the government is ready to cap electricity prices for producers and suppliers if market costs rise further, and to coordinate fuel-price steps with V4 partners. Aviation & Travel: Smartwings and TUI extend their flight partnership for three more years, while Smartwings also expands Prague winter 2026/27 scheduled routes (including Bergen, Venice, Lisbon and more frequencies). Charter Safety: EasyJet passengers evacuated a Prague-bound Airbus A320 at Milan Malpensa after a lithium power bank overheated in an overhead locker. Industrial Restructuring Watch: Volkswagen’s “Future Plan 2030” adds another 50,000 job cut and reshapes European production, a signal for Central Europe’s auto supply chain. Defence Industry Risk: Bulgaria investigates a second EMCO ammunition-site blast in weeks, with authorities weighing storage/security failures against possible sabotage. Culture & Creative Economy: CEE Animation Workshop 2027 opens its call for entries, with modules across Riga and Slovenia and a Czechia industry forum stop. Mobility & Infrastructure: Prague’s Industrial Palace is set to reopen to the public after a major reconstruction.

Automotive Restructuring: Volkswagen approved its “Future Plan 2030,” cutting another 50,000 jobs and reshaping European production as it faces weak demand and Chinese pressure, with Central Europe’s role again in the spotlight. Ammunition Security Probe (Bulgaria): Bulgaria is investigating a second fire and series of explosions at EMCO’s weapons storage site in weeks, with authorities weighing safety failures against possible sabotage tied to the defence industry. Aviation Safety (Prague-bound): An EasyJet Airbus A320 was evacuated at Milan Malpensa after a lithium power bank overheated in an overhead locker, injuring two passengers and prompting an investigation by Italy’s aviation authority. Nuclear Supply (Czechia): Westinghouse fuel has been approved for ČEZ’s Temelín units, a key step for Czech nuclear fuel procurement and long-term plant operations. Energy & Industry (Czechia): ČEZ added five new solar plants, continuing the push to expand renewables capacity alongside broader European power-demand planning. Regional Cooperation (V4/EU): Visegrad leaders renewed plans to strengthen coordination and block EU policies they say raise energy costs, keeping industrial competitiveness and energy prices at the centre of the agenda. Tech Standards (6G): India endorsed a 6G leadership and security call to action with 24 countries, focusing on secure, resilient networks—relevant for Europe’s telecom and industrial digitalisation plans.

Automotive Restructuring: Volkswagen approved its “Future Plan 2030,” including a further 50,000 job cut, a halving of its model range by 2035, and a €135bn capex/R&D push for 2027–2031—aimed at tackling weak demand, excess capacity and China-driven competition, with Central Europe’s auto supply chain in the spotlight. Aviation Safety: EasyJet evacuated a Prague-bound Airbus A320 at Milan Malpensa after a lithium power bank overheated and burst into flames in an overhead locker; 146 passengers escaped via slides and two had minor injuries. Defense Industry Disruption: Bulgaria is investigating another fire at EMCO’s weapons storage site, with authorities not ruling out sabotage and looking for links to earlier blasts tied to the same arms network. Czech Industry & Mobility: Škoda marked 25 years of the modern Superb, highlighting 1.8m deliveries worldwide and the model’s role in the Czech brand’s international growth. Energy & V4 Politics: Visegrad leaders again signaled they will block EU policies that raise energy costs, keeping the region’s industrial competitiveness debate front and center.

Aviation Competition Watch: The Czech Office for the Protection of Competition approved Pegasus’s acquisition of Czech Airlines (and Smartwings), but only with remedies—mainly slot transfers on the Prague–Antalya route—to protect competition; the decision isn’t final yet due to appeal deadlines. Defense Supply Chain Risk: Bulgaria saw another ammunition-warehouse blast tied to EMKO, with prosecutors previously linking the firm’s facilities to alleged Russian sabotage and even earlier explosions in the Czech Republic. Energy & Mobility Costs: Hungary plans diesel-driver compensation: owners of diesel cars up to 150 hp will get HUF 20,000 total by December, paid automatically in instalments, to offset higher fuel prices. Industrial Tourism & Heritage: Prague’s Industrial Palace will reopen to the public for guided tours after a CZK 3bn-plus renovation, with the first big event expected to be Designblok. Automotive Milestone: Škoda is marking 25 years of the modern Superb, with about 1.8m cars delivered worldwide across four generations.

Competition Watch: The Czech Office for the Protection of Competition cleared Pegasus’s planned acquisition of Czech Airlines (and Smartwings), but only after slot-transfer remedies for the Prague–Antalya route to keep competition workable. Industrial Heritage & Tourism: Prague’s Industrial Palace at Výstaviště will reopen for guided public tours from Sept. 25 to Oct. 11 after a CZK 3bn+ renovation, with limited capacity and some dates already sold out. V4 Energy Politics: Visegrád Four leaders (Czechia, Poland, Hungary, Slovakia) are coordinating ahead of EU summits to resist climate and energy policies they say will raise prices and hurt competitiveness, with energy-cost relief and ETS questions high on the agenda. Manufacturing Expansion: Scanfil is expanding its Mysłowice electronics system-integration plant in Poland by 20% (6,000 sq m) to support rising demand, targeting operations in Q1 2028. Aviation Procurement: Embraer presented Uzbekistan’s first C-390 Millennium transport aircraft, making the country the first Central Asian operator of the type.

Prague Public Transport: Prague approved CZK 1.2bn to buy 29 additional Škoda 52T trams, with deliveries planned from Sept 2026 to Feb 2027 and EU Modernisation Fund support of CZK 40m per vehicle; the city also confirmed a further optional order for 25 trams to be financed in 2027. Brno Visitor Economy: Brno Exhibition Centre will build “Green Planet: National Aquarium,” a CZK 700m project with a 2.5m-litre ocean tank and a ~55m underwater tunnel, aiming for opening in the second half of 2028. Czech Rail/Industry: PKP Intercity orders 32 more Griffin 200 locomotives, extending fleet renewal. EU Procurement: The European Commission proposed a Public Procurement Act that would let public buyers exclude bids from suppliers in countries not covered by EU procurement agreements, a move framed by critics as protectionist. V4 Coordination: Visegrad Four leaders agreed to intensify coordination ahead of EU Council meetings, focusing on the next EU budget, CAP support, regional disparities, defense costs, and energy prices. Energy/Infrastructure Cooperation: Czech and Kazakhstan sides discussed modernization of water supply, wastewater and sewer diagnostics, including digital monitoring and BIM. Tech & Skills: OpenSSL funds six Australian students to attend an OpenSSL Conference in Prague, supporting cryptography and open-source learning.

Aquarium Boom in Brno: A new “Green Planet: National Aquarium” complex is planned at the Brno Exhibition Centre, with about CZK 700m in investment, construction starting in 2027 and opening in late 2028. The site will feature around 100 tanks holding over four million liters, roughly 400,000 animals across 500 species, and a 2.5m-liter ocean tank with a 55m underwater tunnel, aiming to draw up to 500,000 visitors in the first year. Nuclear Fuel Diversification: Czech nuclear regulator approved Westinghouse fuel for ČEZ’s Temelín VVER-1000 units, with loading planned for Unit 1 during its shutdown later this year—another step to diversify suppliers after a multi-year approval process. Inflation Watch: Czech consumer prices rose 1.9% year-on-year in August (from 1.7% in July), with fuel up most and food down, according to the Czech Statistical Office. Energy Prices in Focus: V4 leaders meeting in Bratislava flagged high electricity prices as a competitiveness threat and discussed proposals to cut costs, including ETS-related ideas and alternative electricity trading approaches. Prague Transport Upgrade: Petřín funicular will resume passenger service from 22 September 2026, using new fourth-generation carriages (100 to 120 capacity), with 10-minute intervals and PID Lítačka discounts. Quantum Computing Milestone: IQM outlined a three-step upgrade path for LUMI-IQ at the LUMI AI Factory, with staged installations from 2027 to 2029 to reach logical-qubit-capable superconducting computing. Climate Week Prague: Prague will host Central Europe’s first Climate Week from 14–20 September, with events spanning adaptation, water management, energy, construction, agriculture and transport, plus a sustainable finance summit.

Czech Industry & Trade: The European Commission is pushing an Affordable Housing Act to give cities and national authorities more legal power to curb short-term rentals and vacant homes—an effort aimed at easing pressure on rents and housing supply across EU cities. Automotive & Industry: Škoda says its new Peaq 90 EV set a seven-seat range record: 936 km on one charge from Mladá Boleslav to Zandvoort under TÜV SÜD supervision, exceeding its WLTP range by 289 km. Energy & Nuclear Supply Chain: ČEZ received approval for new Westinghouse nuclear fuel for Temelín, a move that matters for Czech power generation continuity and fuel procurement planning. Lithium & Mining Finance: European Metals’ Cinovec lithium project in Czechia jumped after a large Czech state grant approval, shifting the project closer to being financeable. Tech & Research: IQM’s LUMI-IQ upgrade path targets Europe’s first logical-qubit-capable superconducting quantum computer, with Czechia among the participating countries via the LUMI AI Factory. EU Innovation Cooperation: China and Central and Eastern European countries unveiled a 2030 vision for innovation cooperation, spotlighting AI, biotech and green energy. Security & Telecom: India endorsed the 6G Leadership and Security Call to Action alongside Czechia and other governments, framing secure digital infrastructure as key to competitiveness and national security.

Nuclear Fuel Diversification: ČEZ received SÚJB approval to load new Westinghouse nuclear fuel at Temelín Unit 1 during the planned end-2026 shutdown, a step aimed at strengthening energy security and reducing dependence on single suppliers. EU Housing Rules: The European Commission proposed giving cities more power to curb Airbnb-style short-term rentals in areas with clear housing pressure, targeting professional multi-property operators. Industrial Safety & Environment: Czech Environment Minister Igor Červený disclosed long-running leakage of highly toxic chemicals at the Dobrá Voda site in Šumava National Park and said a criminal complaint will be filed after a contractor warning was allegedly ignored. Telecom Infrastructure Investment: Czech wholesale operator Cetin reported H1 revenues up 4% and said it is investing in 5G and expanding fibre networks for residential customers. Space & Research: ESA signed an agreement with Vast for Greece’s first crewed mission to the ISS, with Czech astronaut Aleš Svoboda slated as pilot. Healthcare Capacity Boost: Prague opened the new National Oncology Centre in Motol, aiming to raise oncology capacity by up to 40% and speed up diagnosis-to-treatment pathways. Corporate Deal: Rite-Hite acquired Danish textile ventilation maker KE Fibertec, strengthening its fabric HVAC ductwork footprint in Europe and the US. Third-Party Risk Tech: Scytale launched AI-powered third-party risk management capabilities inside its Vendors module, targeting the growing role of vendors in breaches.

Nuclear & Industry Partnerships: ABB signed a non-binding MoU with Rolls-Royce SMR to explore automation, electrification, instrumentation and communications for SMR scaling, with Rolls-Royce targeting 470 MW units for decades of low-carbon baseload power; the firms also point to UK first-site work and potential Czech deployment via ČEZ at Temelín. Energy Flexibility Pressure: EU solar additions hit ~33.8 GW in H1 2026, but SolarPower Europe warns the growth is increasingly constrained by curtailment, negative prices, grid congestion and weak flexibility, making storage, flexible demand and steadier national frameworks more decisive. EU Agri Subsidies Under Scrutiny: The European Commission withheld about €3.18m in Agrofert-related reimbursements after questioning the trust meant to address concerns over Andrej Babiš links, reopening a dispute that matters for Czech farming and fertiliser production. Prague Labour Market: Prague unemployment rose to 4% at end-August, with 40,509 job seekers registered, while vacancies remain high at 22,519. Czech Business & Infrastructure: Prague Congress Centre posted record 2025 results (CZK 717m revenue, CZK 234m EBITDA) and is investing in a new exhibition hall to attract larger international events. Aviation Safety Reminder: After Emirates Flight 521’s 2016 cabin-bag evacuation lessons, IATA renewed its “Save a Life, Not a Bag” push, highlighting how passengers’ luggage choices can slow evacuations.

Rail Infrastructure: Czech Railways will temporarily reinforce selected sections of the Výtoň railway bridge with carbon-fibre laminates, aiming to keep restricted services running until at least 2028 while the six-week works cause no extra train limits. Corporate Governance: Prague-based investor Starteepo (7.34% stake) is pushing Xerox for a strategic review and more transparency around its financial services unit, arguing it could unlock major shareholder value. Energy & Industry: SolarPower Europe reports EU solar added 33.8 GW in H1 2026 (+1.9% y/y), but warns policy support is weakening and 2030 targets remain at risk. Defense Tech: Ukraine unveiled the Koral surface-to-air missile launcher on a Czech-made Tatra truck chassis at MSPO, and NATO’s innovation pipeline also advanced an AI targeting module from a Ukrainian team. EU Policy: EU member states cleared a derogation for Ukraine to buy Patriot air-defence products under a €3.2bn loan, with the UK adding £100m via NATO’s PURL. Cybersecurity: Czech crypto-wallet maker SatoshiLabs says a ShipMonk breach exposed data for about 67,000 more US customers, raising phishing and scam risks. Czech Business & Manufacturing: ABB and Rolls-Royce SMR signed an MoU to explore automation and electrification solutions for factory-built small modular reactors.

EU State Aid for Brno Arena: The European Commission approved €53m in Czech state support to finish a multifunctional hall in Brno, citing higher fit-out costs from procurement and limited impact on competition. Cement Decarbonisation: Holcim started a calcined-clay line at its Čížkovice plant, adding 115,000 tonnes of calcined clay capacity and enabling up to 580,000 tonnes of lower-carbon ECOPlanet cement. Agrofert Subsidy Scrutiny: Brussels temporarily withheld €3.18m of farm-subsidy reimbursements to Czechia’s Agrofert while it checks potential conflict-of-interest issues, with the hold lasting months. V4 Industry + AI Push: Czech, Slovak, Polish and Hungarian lawmakers called for tighter integration of industry, energy and AI to boost productivity, stressing safe and human-centred deployment. Defense Procurement Warning: Czech ammunition maker STV Group says India’s Datasel is a “fraudulent” intermediary after a failed deal and warns governments against signing with it. Prague Housing Resumes: Central Group is restarting construction of 2,000+ flats across Prague districts after cost pressures eased, with projects valued around CZK 17bn.