Czech Business Today

As the European Commission embarks on its new mandate, the hearings of Commissioner-designates have offered critical insights into whether the pressing calls of Czech businesses will be addressed. These calls, rooted in the challenges of navigating a competitive global market, cantered on streamlining regulations, reducing energy costs, advancing digital transformation, and ensuring open trade relations.

The hearings highlighted a renewed focus on these issues. Maroš Šefčovič, proposed for Trade and Economic Security, prioritized finalizing trade agreements and addressing dependencies in critical supply chains. His commitment to reducing administrative barriers aligns with Czech businesses’ long-standing demand for a streamlined internal market and improved cross-border operations.

On the trade front, Czech businesses had called for diversified trade agreements to reduce dependency risks and improve global market access. Šefčovič’s emphasis on deepening relations with fast-growing markets could open new opportunities for Czech exporters, especially SMEs.

Energy costs, a major concern for Czech industry, featured prominently in the agenda of Dan Jørgensen, Commissioner-designate for Energy and Housing. His focus on energy security, renewable energy investments, and decarbonization acknowledged the EU’s cost disparity with global competitors. Czech businesses will be watching closely to see if these measures deliver the pragmatic energy infrastructure enhancements they urgently need, including support for nuclear energy.

Stéphane Séjourné, the nominee for Executive Vice President for Prosperity and Industrial Strategy, presented his vision for the European Competitiveness Fund, designed as a “one-stop shop” to support science and technology-based companies through research, development, and scaling up. This initiative promises to simplify access to EU resources and foster innovation, although questions remain about its structure and funding. His portfolio also includes introducing a Clean Industrial Deal and reforms to support SMEs and traditional industries in the green transition.

Digital transformation and innovation, vital for Czech firms’ competitiveness, were key themes in Ekaterina Zaharieva’s portfolio on Startups, Research, and Innovation. Proposals for an EU Innovation Act and more accessible funding for SMEs reflected calls for policies to foster technological advancement and provide the capital needed for modernization.

Defense also emerged as a critical topic during the hearings. Andrius Kubilius, Commissioner-designate for Defense and Space, emphasized the urgent need to address Europe’s defense challenges, from underfunding and fragmented markets to the rise of strategic competitors like China and Russia. Kubilius called for the creation of a true European Defense Union to complement NATO efforts, stressing the importance of boosting defense production, supporting cross-border procurement, and ensuring the EU plays a significant role in the “space revolution.” For Czech businesses in the defense and aerospace sectors, these plans could open new opportunities in an increasingly unified European market.

The hearings also showed an encouraging commitment to deregulation, with a unified call to reduce the administrative burdens hampering EU businesses. While this signals progress, its success will depend on tangible implementation and cooperation across member states.

For Czech businesses, these hearings represent a step forward in addressing their key concerns. The upcoming actions of the new Commission will determine whether these commitments translate into a more resilient, competitive, and open EU economy that champions the needs of its industries.

Source: CEBRE, Commissioners hearings