Overview of the latest economic events in the Czech Republic

The Czech economy in 2025 is facing the consequences of the new EU budget proposal, which, according to Tomáš Prouza, president of the Czech Association of Trade and Tourism, will not affect food prices. Farmers warn, however, that reduced EU subsidies, especially for environmental and welfare measures, could lead to a reduction in the quality of domestic production and an increase in imports from third countries. Former finance minister Alena Schiller described the EU budget proposal as alarming and centralising.

From a macroeconomic point of view, inflation in the Czech Republic remains a key issue, which reached a record high in June, according to Eurostatu 2.8 %, which is significantly above the EU average (2.3 %). The price increases are most pronounced for food, energy and rent. The Czech koruna stagnated at CZK 24.64/EUR and CZK 21.25/USD, with analysts attributing the stability to monetary policy expectations ČNB and developments in the foreign exchange market.

The Ministry of Finance said that in the first half of 2025 the Czech Republic received CZK 24 billion more from EU funds than it paid into the EU budget. A significant share of the positive balance was due to revenues from structural funds and the common agricultural policy.

Foreign investment

Strong news of the day is the strategic agreement between the semi-state energy company ČEZ a britským gigantem Rolls-Royce SMR on the construction of the first small modular reactor in the Czech Republic. Construction next to the nuclear elektrárny Temelín is due to start in the mid-1930s and represents a key investment in the energy self-sufficiency of the Czech Republic. ČEZ also became a shareholder Rolls-Royce SMR, expanding its international energy portfolio.

Private equity continues to strengthen in the Czech Republic. Genesis Capital Fund announced that it has completed the acquisition of five companies in the first half of 2025, confirming the growing activity in the M&A market. In the real estate sector, the group remains dominant CPI Property Groupwhich acquired retail portfolios in Poland and Germany worth over EUR 650 million during the second quarter.

Another significant transaction concerns the Belgian group Sibelco Groupwhich took over four Czech companies specialising in glass recycling: Envy Recycling, SPL Recycling, SPL Servis a CEEK. Wolf Theiss advised on this multinational acquisition.

Czechoslovak Group (CSG) has expanded its defence activities with the acquisition of a German nitrocellulose production facility from IFF Group. KKCG, the Czech holding company of entrepreneur Karel Komarek, has completed the takeover of Camelot, the British national lottery operator, in line with its strategy of global expansion in the gaming and IT sectors.

Significant events outside the Czech Republic with global impact

A number of international mergers and acquisitions have taken place in the global market (M&A 2025). Bank of Italy UniCredit completed the acquisition of Belgian digital Aion Bank including the cloud platform Vodeno for €376 million. At the same time, it increased its stake in the Greek Alpha Bank and is approaching the limit of 29.9 % in the German Commerzbank. UniCredit thus consolidating its position as a regional financial leader and digital innovator.

Record-breaking transaction in the US Constellation Energy, která převzala Calpine Corporation for $16.4 billion. Chemical companies merged in Canada Borealis a NOVA Chemicals (value of USD 13.4 billion). In the retail sector, the expected agreement between Sycamore Partners a Walgreens Boots Alliance worth USD 10 billion.

On the industrial front, Czech billionaire Pavel Tykač, through Sev.en Global Investments, announced the takeover of energy operations in the US, Australia and the UK. Including a planned buyout of a Norwegian steel plant from the group's Celsa Group The total portfolio outside the EU amounts to USD 1.9 billion, which significantly expands the Czech influence in the global heavy industry.

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