Czech Business Today

As the European Commission begins a new mandate, the upcoming hearings of Commissioner-designates are critical for addressing issues affecting Czech businesses in a competitive global landscape. With Mario Draghi’s recent report underlining the need for urgent reforms to support competitiveness, Czech business representatives see this as a pivotal moment to shape policies that impact their industries. The hearings provide a platform to voice concerns about the complex regulatory environment, energy costs, labour mobility, and the EU’s green transition—all factors that significantly influence the Czech business environment.

Czech businesses are eager for a more cohesive, obstacle-free internal market to bolster competitiveness within the EU. The Enrico Letta report brought much-needed attention to this area, but tangible progress has been limited. In recent years, increasing crises have triggered national protectionist measures that harm cross-border operations, particularly for Czech companies reliant on exports. Business leaders are urging Commissioner-designates to commit to removing barriers and streamlining regulations to enable easier access to labour and investment across borders.

The Czech Republic’s industry-heavy economy is especially vulnerable to rising energy costs, which are notably higher in the EU than in the U.S. The energy-intensive sectors in the country view the EU’s green agenda with concern, particularly regarding its impact on global competitiveness. While supporting the EU’s climate goals, Czech businesses are calling for a balanced approach that includes pragmatic steps like enhancing energy infrastructure, supporting nuclear energy, and creating affordable, renewable alternatives. These issues are crucial for Czech firms facing global rivals with lower operational costs.

For Czech businesses, digital transformation is key to staying competitive, especially amid the EU’s ambitious climate targets. They advocate for Commissioner-designates to prioritize policies that encourage innovation, improve digital infrastructure, and ensure cybersecurity across member states. Czech businesses are particularly focused on accessible capital for innovation, arguing that without this, firms in the EU will struggle to compete globally, especially with rivals from innovation-driven economies.

As global supply chains face increasing geopolitical risks, Czech businesses stress the importance of expanding trade agreements to secure reliable access to essential resources. Trade and investment policies that strengthen ties with fast-growing markets and encourage economic partnerships with non-EU countries will be instrumental in ensuring Czech companies’ global reach. The EU’s trade strategies should support SMEs in expanding internationally and mitigating dependency risks.

The hearings are an opportunity to reassure businesses that their concerns will be heard and addressed through actionable policies that drive competitiveness, reduce regulatory burdens, and foster sustainable growth. For Czech business leaders, this mandate holds the promise of a more resilient and open EU economy that truly champions the needs of its businesses.

Sources:  CEBRE Founders