Czech Railways, Siemens, Penta Real Estate and Arriva (26 June 2025)

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Overview of the latest economic events in the Czech Republic

The Czech Republic recorded several key economic developments on 26 June. The Ministry of Transport announced the conclusion of a contract with Arriva, which will take over the operation of train lines between Prague and western Bohemia from December 2028. These routes are currently operated by ČD, which may indicate an intensification of competition in public transport.

The koruna continued to strengthen and reached its highest value against the euro in a year (CZK 24.74/EUR) and even against the US dollar since July 2023 (CZK 21.28/USD). This development strengthens the purchasing power of importers, but may hinder export performance. The Prague Stock Exchange, on the other hand, weakened slightly, which analysts attribute to investors' cautious approach due to international uncertainties.

The government also decided to pay CZK 2.24 billion in state compensation to companies in energy-intensive sectors to counter the rising costs of emission allowances. Companies such as CEZ, Liberty Ostrava and Spolchemie are to benefit from this support.

Foreign investment

Among the most important news of the day is the entry of the Dutch technology group ASML into the Czech market through the acquisition of a smaller development centre in Brno, which specialises in semiconductor components. The investment is intended to provide access to engineering talent and support development in the Central European region.

Siemens Energy Czech Republic has announced a joint project with German partner Bosch worth over CZK 1.1 billion. The project will focus on the development of hydrogen technologies and will be co-financed by the European Innovation Fund. Up to 300 new jobs are expected to be created.

The investment group Penta Real Estate has made itself visible on the real estate market by starting negotiations on the sale of part of its office buildings in Prague 4 to the French fund Amundi. The transaction could reach a volume of up to CZK 4 billion.

At the same time, Rohlik Group is preparing to enter the Hungarian market through the acquisition of local e-grocery startup FutarGo, thus expanding its Central European presence.

Significant events outside the Czech Republic with global impact

At the global level, the agreement between US banking group JPMorgan Chase and Japan's Mizuho Bank to create a strategic fund to support technology startups in Southeast Asia has attracted attention. The fund will have an initial value of USD 3 billion and is seen as a response to Chinese influence in the region.

Brent crude gained 1.2 % to $85.60 per barrel yesterday, in response to news of production curbs in Nigeria and outages in Libya. Rising commodity prices may also have a secondary impact on Czech industry and inflation, especially in transport and manufacturing.

The debate on the reform of fiscal rules continues in the European Union. European Central Bank President Christine Lagarde said today that tighter fiscal frameworks must be balanced with investment in climate transformation and defence. This is a particularly sensitive issue for countries like the Czech Republic, which is facing pressure to increase defence spending - the government is considering increasing the defence budget to up to 5 % of GDP, which could require drastic fiscal changes or new taxes.

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