Overview of the latest economic events in the Czech Republic

Prague's economic scene is resonating today with the publication of a study by PAQ Research and the Research Institute of Labour and Social Affairs (RILSA), which reveals fundamental differences between actual expenses and lump-sum expenses for the self-employed (self-employed). The most significant deviations concern IT and other office occupations, where actual expenditure is only a quarter of the flat-rate costs. The study reopens the debate on tax fairness between self-employed workers and employees.

The Ministry of Transport has announced another shift in the preparation of the northern part of the Prague Ring Road. The Directorate of Roads and Motorways (ŘSD) now has all the final EIA opinions and plans to start land purchases for sections 518 and 519 in the autumn. The actual construction of all three sections, including section 520, is scheduled to start in 2028. This key infrastructure project is intended to support traffic flow in the capital and its surroundings.

The koruna appreciated significantly on the currency market. Against the dollar, it reached its strongest level in almost two years (CZK 21.56/USD), while the current exchange rate against the euro is CZK 24.76/EUR. The Czech currency is thus boosting investor confidence despite a slight weakening of the Prague Stock Exchange, which ended the day at its lowest level since the end of May.

Foreign investment

The big news of the day is the start of the return of oil to the state reserves by Orlen Unipetrol, which originally received the crude to bridge the crisis situation. However, instead of Russian crude, Azeri Light crude is now being returned. This shift is a significant step towards diversification of energy sources and the Czech Republic's security priorities. Azeri Light is also available for use in the Kralupy refinery, thus strengthening the stability of fuel supplies for the domestic market.

Fast-growing tech startup Veloq, which spun off from Rohlik Group, has entered the market with a fully AI-native platform for managing the entire food delivery chain. The platform is used by Rohlik.cz, for example, which has seen 37 % year-on-year growth and achieved a turnover of over €1.1 billion. Veloq enables the delivery of over 1.3 million orders per month with 94 % accuracy and minimal waste, which is key to the sustainability of e-commerce grocery chains.

Another important announcement is the expansion of the Swedish bank SEB to Prague, which has opened its first technology centre outside Scandinavia. The centre will focus on developing fintech solutions in the areas of wealth management and digital transactions. SEB sees the Czech Republic as a strategic hub with a skilled workforce and a stable business environment.

Significant events outside the Czech Republic with global impact

On a global level, a deal between Microsoft and SAP caught the eye today, with the US tech giant announcing a $2.1 billion investment to expand SAP's Business AI cloud infrastructure in Europe. The collaboration is set to strengthen the EU's position in the business solutions sector and bring thousands of jobs to the region.

Also significant was the merger of HSBC Asset Management and the Dutch fund Robeco, the combination of which creates one of the largest ESG investment houses in Europe. This acquisition reflects the growing interest in responsible investment and climate criteria.

In Asia, Japanese carmaker Toyota has announced a new joint venture with Chinese firm BYD to develop battery electric vehicles. The US$4 billion investment will be directed to a research centre in Shanghai. The project aims to create a new generation of affordable EVs for global markets and reduce dependence on European technologies.

All these steps confirm the trend of internationalisation of business and the shift of strategic investments to new technological areas and energy independence. It is crucial for Czech companies and investors to monitor these global flows and look for opportunities for growth and diversification.

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