Czech Republic

High inflation has long been the most serious macroeconomic challenge our country has faced in recent years. It was far from being only economists who identified deep price instability as a major problem, as the wider public viewed the extraordinary rise in most prices in the economy with equal reluctance.

Ostrava is an often overlooked region in the Czech Republic, facing a very difficult and uncertain future over the next decades. The region has historically been entirely dependent on coal mining, which is an unenviable position at present time, as the mines are being closed. Mining has historically made it the industrial backbone of the country, but heavy industry is currently in decline.

After joining the European Union, the Czech economy experienced rapid growth. Exports to EU countries soared from 25 billion euros to 188 billion euros in 2022. The growth rate of foreign direct investment increased fourfold after the Czech Republic joined the EU. GDP per capita rose by an impressive 46%. These figures speak clearly: being part of the European Single Market has become essentially vital for the Czech Republic.

In the Czech Republic, there has been a long-standing discussion about the possibility of taxing still wine. This issue is particularly relevant during times of economic crisis when the state is looking for ways to increase tax revenues. However, the introduction of new taxes should be based on a thorough analysis of impacts and should consider the insights and interests of all stakeholders involved to ensure that the tax is neither unnecessarily costly nor ineffective.

After the rising number of immigrants in 2015, the implementation of the Common European Asylum System became a priority for EU member states. Nevertheless, it has been documented by many studies that the V4 group countries drifted away from these intentions. During 2016, the members of the Visegrad group worked together as a united bloc on migration issues in Brussels.

While we import almost 3 million tons of green beans into the EU every year, we only import around 80,000 tons of roasted beans. The price of unroasted coffee on the exchange is usually between 40 and 120 CZK/kg (select unroasted coffee can be bought wholesale for around 250 CZK/kg, but prices can rise dramatically here). 

The Czech Republic is one of the Eastern European economies that, despite its socialist past, is catching up economically with Western Europe[1]. However, in addition to the increase in social welfare and overall national income, this process is naturally associated with a form of income and wealth inequality which is perfectly natural in modern market economies.

The Liberalni Institute calculated that with an average wage of CZK 40,086, the total cost per employee is 63% higher, i.e. CZK 65,376. This is the second year of the Cost of an Employee project, which the Liberalni Institut publishes in cooperation with the Slovak think tank INESS and the German FNF Foundation. The aim of the project is to calculate the total cost of a job for different types of employees.

In an interview with Seznam Zprávy, the head of Madeta (a Czech dairy company) Milan Teplý stated several facts that contradict basic financial knowledge. He began the interview by saying that Madeta will be profitable this year. However, he immediately added: \"It\'s a sin to be in profit, we won\'t get subsidies.\" We do not understand this. Why should a company that is making profit seek subsidies and ask the state for support?

Along with the increase of inflation in Poland and in the whole world, the discussion about its causes intensifies. There are many voices that the main reason is an external supply shock - the prices of energy and food. It is useful, in the analysis, to distinguish within CPI inflation, a core inflation and the rest of it. Core inflation is an inflation rate that is devoid of the most unstable components such as food and energy prices.