The Czech crown weakened against most major world currencies in the first half of this year, while last year it strengthened significantly. This week, the Chamber of Deputies is debating key legislative proposals – an increase in parental benefits, an amendment to the building code, and a law on public budgets. According to current estimates, the minimum wage could increase to 24,900 crowns next year. The NATO summit in Ankara is putting pressure on increasing defense spending, which also affects the Czech state budget.
The Czech currency weakened against most major world currencies in the first half of this year. It fell by 3.4 percent against the US dollar, 0.4 percent against the euro, and 1.6 percent against the British pound. On the other hand, the crown strengthened by 1.6 percent against the Polish zloty, said analyst Petr Lajsek of Purple Trading. In 2025, the crown strengthened significantly – by 15.2 percent against the dollar and 3.7 percent against the euro.
The Chamber of Deputies this week is approving an increase in parental benefits by 50,000 crowns to 400,000 crowns starting next year. It will also return to the final round of debate on the controversial amendment to the building code, which, according to its authors from the coalition, is intended to speed up and simplify the process of obtaining building permits. Members of parliament will also vote again on the controversial bill on public budgets, which was returned to them with amendments by the Senate.
The minimum wage could increase next year by 2,500 crowns to 24,900 crowns, according to current estimates. The increase in the minimum wage affects the costs of employers, especially in sectors with lower added value, and also affects the amount of other social benefits that are linked to the minimum wage.
The NATO summit in Ankara, where leaders of the 32 member countries are facing pressure to fulfill their commitment to increase defense spending, directly affects Czech public finances. The Czech Republic has pledged to increase defense spending, which places further demands on the state budget and will be one of the topics during the autumn preparation of the 2027 budget.
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