In the first half of 2025, a total of 16,944 new companies were established in the Czech Republic, marking a 9% increase compared to the same period last year and representing the highest number of new firms since 2017. According to analysis by CRIF – Czech Credit Bureau, this growth occurred despite a parallel rise in company closures. From January through June, 8,961 companies ceased operations, up 15% year-on-year, resulting in a net market gain of 7,983 companies.

Analyst Věra Kameníčková from CRIF noted that although closures are rising faster than new formations, the overall net growth for the first half of the year was 4% higher than in the same period last year. Over the past 12 months (July 2024 to June 2025), 32,360 new companies were formed—a 10% increase—while 18,237 companies shut down, 14% more than the previous year. This yielded a net gain of 14,123 firms, a 6% increase compared to the prior year-long period.

Geographically, almost half of all newly established companies in the first half of the year were based in Prague (8,806), followed by the South Moravian Region (2,091), and the Moravian-Silesian Region (1,118). The Olomouc Region experienced the highest percentage growth in new company formations at 21%, with the Pilsen and Karlovy Vary regions also seeing double-digit increases. However, the Zlín Region recorded a 14% drop in new companies compared to the first half of 2024.

Company closures followed a similar regional pattern, with Prague registering the most closures (4,312), followed by the South Moravian Region (969) and the Ústí Region (555). The Liberec Region saw the sharpest increase, with closures nearly tripling year-on-year. Other regions, including Pardubice and Vysočina, also experienced substantial increases in company dissolutions. In contrast, Prague, Central Bohemia, and Moravian-Silesia saw relatively stable figures.

Net growth remained concentrated in Prague, which accounted for 56% of all net new companies (4,494). The South Moravian Region added 1,122 companies. However, the Liberec Region saw a net loss of 259 companies, and Ústí nad Labem recorded a loss of 62.

Sectorally, the most new companies were created in trade (2,079), construction (1,806), and manufacturing (1,756). The transport and storage sector saw the fastest growth, up 19%, while services like repairs, cosmetics, and textile cleaning also recorded notable increases. However, the financial and insurance industries saw a 19% decline in new firms, and real estate management dropped by 17%.

The business and real estate sectors also saw the most company closures, with 2,730 and 1,607 closures respectively. Professional, scientific, and technical activities followed with 1,215. Sectors with the sharpest increase in closures included electricity, gas, and heating utilities (up 57%), miscellaneous services (up 46%), and cultural and recreational activities (up 45%).

Over the past year, the fastest-growing sector was “other activities,” which includes personal services, with 62 new companies for every 10 closures. Health and social care and education sectors also posted strong ratios of growth compared to closures.

The age structure of defunct companies showed a shift toward older firms. The share of companies operating for 31 to 35 years among those that closed rose from 10% to 14% year-on-year. Meanwhile, companies established after 2015 now represent a smaller share of closures, indicating a maturing business environment in the Czech Republic.

Source: CRIF

The Czech Association of Artificial Intelligence has expressed concern that the new U.S. Action Plan for Artificial Intelligence, unveiled on Wednesday by President Donald Trump, could impact the technological sovereignty of other countries, including the Czech Republic. According to the association’s director, Lukáš Benzl, the strategy marks the most extensive AI policy initiative ever presented by the U.S. government and signals a shift toward more aggressive global positioning in the field.

The American plan is structured around three central pillars: innovation, infrastructure, and diplomacy and security. Benzl noted that the strategy represents a clear ambition by the U.S. to achieve and maintain technological dominance in AI, with wide-reaching consequences. He warned that this approach, based on significant investment, industrial self-sufficiency, and regulatory flexibility, is designed to accelerate innovation by empowering the private sector and reducing restrictions on experimentation. In contrast to the EU’s regulatory-heavy model, the U.S. is prioritizing speed and geopolitical leverage.

Benzl emphasized that the document should serve as a wake-up call for Europe and the Czech Republic, not just as a signal of U.S. intent but as a challenge to develop a more robust and proactive strategy. He argued that the Czech Republic and the EU must treat AI development as a matter of strategic importance and act accordingly.

He urged full implementation of the European Action Plan for AI, calling for competitive infrastructure, stronger diplomatic engagement in AI governance, and the development of open-source European AI models. Benzl also suggested the European Commission should reassess the speed and complexity of current regulatory proposals under the AI Act, noting that the Czech Republic has taken the lead in advocating for a delay in the enforcement of inactive provisions of the legislation.

The Czech AI Association sees the U.S. plan as a geopolitical move that places additional pressure on Europe to assert its own technological and strategic independence in the evolving landscape of artificial intelligence.

Source: CTK

Russian influence remains an ongoing threat in the Czech Republic and across the broader post-Soviet region, particularly through hybrid tactics and disinformation campaigns. Experts consulted by the Czech News Agency note that while some pro-Russian structures have been weakened—especially following the 2022 invasion of Ukraine and events like the Vrbětice affair—Moscow’s strategy has evolved rather than disappeared. Instead of overt support for Russia, the focus has shifted to dividing societies, undermining trust in democratic institutions, and spreading confusion.

According to Petr Havlíček of the Association for International Affairs, Russia’s standing in the Czech Republic has deteriorated significantly, yet anti-system movements have adjusted their messaging. Rather than openly praising Russia, many have redirected their criticism toward Ukraine and its people. Havlíček also pointed to cyber activities and financial crime, particularly money laundering, as ongoing challenges. Despite efforts, the Czech government has struggled to tackle these issues effectively. Data from the monitoring firm Datlab shows that more than 12,000 companies in the Czech Republic have links to Russian nationals, though the true number may be higher due to opaque ownership structures.

This form of influence falls within the broader scope of asymmetrical conflict, where a weaker actor uses non-military tactics such as disinformation, sabotage, and cyberattacks to destabilize stronger adversaries. As Eva Klusová of the Czech Academy of Sciences explains, the goal is to erode public trust in the state and its institutions. If citizens no longer value or believe in democracy, they are less likely to defend it, giving adversaries an advantage without direct confrontation.

Government officials and analysts have noted a concerning gap in the Czech Republic’s preparedness for hybrid threats. While there have been improvements in cybersecurity, other areas such as strategic communication and misinformation response remain underdeveloped. Havlíček warned that this vulnerability could have political consequences, especially in the lead-up to elections.

The Czech Security Information Service reported that in 2024, Russia continued efforts to re-establish intelligence operations under diplomatic cover. Although early stages of the Ukraine invasion saw a lull in activity, Russian cyber operations have returned to previous levels. While major sabotage incidents have been avoided, the intelligence services have recorded lower-level security breaches.

Experts agree that Russia’s disinformation efforts in the Czech Republic are not intended to sway public opinion in favor of Russia, but rather to create division and doubt. The strategy involves flooding the information space with contradictory messages to confuse and polarize audiences. This approach is often implemented through domestic actors who, knowingly or not, amplify Kremlin-aligned narratives.

Josef Šlerka, a specialist in information warfare, emphasized the sophisticated nature of Russian influence campaigns. He noted that while some individuals genuinely support pro-Russian views, others—including public figures and politicians—may disseminate such narratives without direct links to Russia, often gaining visibility through Russian state media. The most sensitive cases, he added, involve those with suspected connections to Russian financial networks.

Šlerka highlighted a shift in Russia’s approach to information warfare since the start of the Ukraine invasion. Before 2022, these campaigns were largely aimed at shaping Western opinion and policy, particularly in relation to sanctions. Since then, they have become a more integral part of wartime strategy, focused on weakening Western resolve. He cautioned that influence operations are long-term efforts, often playing out over years rather than months.

Analyst Roman Máca identified social media platforms such as Facebook, YouTube, and Telegram as key tools for Russian propaganda, often through channels linked to intelligence services. These messages are spread further by public profiles and politicians, amplifying their reach.

Strengthening media literacy and critical thinking is seen as a vital countermeasure. Havlíček noted that many in the Czech public remain unaware of the manipulative techniques used in propaganda, making them vulnerable to disinformation. Šlerka added that while Russia has failed to convince most Czechs of its legitimacy—the number of strong pro-Russian sympathizers remains small—the larger goal of disrupting social cohesion is showing signs of success. Kremlin-aligned narratives have begun to seep into mainstream discourse, contributing to political polarization and mistrust.

The experts conclude that while Russia’s direct influence may have diminished in some areas, its strategic objectives remain consistent. The challenge for the Czech Republic lies in recognizing and responding to these evolving tactics with resilience, coordination, and public awareness.

Source: CTK