Czech Business Today

Even though the Czech Presidency of the European Union took place at a time when Europe was struggling with the energy crisis and the emerging recession after the Russian attack on Ukraine, our country managed its role at the head of the EU-27 very well. Many thanks to all those who worked for the Czech Republic during this period. Taking the helm of the EU in an unprecedented situation of war almost on its borders, negotiating alternative gas supplies at the European level, temporarily relaxing the rules on public aid, continuing the EU’s proactive trade policy, reaching an agreement on the principle of solidarity between the Member States of the European Union, helping refugees from Ukraine and unanimously supporting Ukraine in its defensive war against Russia are all unforgettable results of the Czech Presidency. The Czech Republic has thus clearly corrected the impression of the previous Czech Presidency when we wanted to ‘sweeten the pot’ for Europe. Still, the fall of the government erased some of the successful negotiations.

However, the ruling five coalitions did not sufficiently present the results achieved in the European field to the Czech citizens. Its hesitant steps on the domestic political scene overshadowed them. An example of this is the extraordinary meetings of the Energy Council, which did produce results. Still, in the meantime, no help in energy prices for companies was obtained on domestic soil until the autumn. However, the mechanisms of the so-called Temporary Crisis Framework could have been used by the government as early as the summer when the union warned of the unbearable rise in energy prices and possible solutions. We see another missed opportunity: the Czech Republic did not move closer to the euro area during our Presidency, and the changeover to the euro is still not in sight.

Thanks to the Czech Presidency, other longer-term European agendas, such as the Fit for 55 legislative package and other climate and energy legislation, digital technology issues, and an ambitious trade policy towards third countries, have also been advanced. However, there are, unfortunately, big “buts” here too. Despite the efforts of the Czech Presidency, not all concrete results on the green agenda are positive, even though they are a compromise between EU countries, and it cannot be expected that postponing them to the Swedish Presidency would bring better conditions for companies.

Another example of a “big but” is the crucial European legislation – the Artificial Intelligence Act. In the view of business representatives, academics, and world-renowned experts, the current draft Act has serious flaws that will severely limit AI uptake and practical use. Our concerns about the development of the AI Act are also shared by all major European business federations and associations, which have endorsed the unified position of the European business confederation BusinessEurope. However, we are confident that under the Swedish Presidency, we will be able to negotiate a final regulatory text in trilogues that will not be so problematic for researchers, developers, and companies.

From a business perspective, the proposal on corporate sustainability in due diligence is also still problematic. The Czech Presidency has also seen progress in the area of trade policy, where, for example, the complicated negotiation of a free trade agreement with Chile has been completed, and significant progress has been made in the negotiation of a similar agreement with Australia.

Czech companies and employers also benefited from the exceptional year. As the Confederation of Industry of the Czech Republic, we have worked to ensure that the European Union remains business-friendly and creates a level and fair playing field for entrepreneurs from all Member States.

Despite the above-mentioned “beauty defects,” on behalf of our members, we join the assessment of the top EU officials who evaluated the Czech Presidency as very active and successful. Many thanks to Czech Prime Minister Petr Fiala and all the teams involved, both at the Government Office and individual ministries, and especially at the Permanent Representation of the Czech Republic in Brussels.

Dagmar Kuchtová, SP ČR