Czech Military Expands Cyber Defenses as Hybrid Threats Intensify

The Czech Republic is stepping up its defenses in cyberspace as the country faces a growing wave of digital threats linked to Russia and other hostile actors. The country’s armed forces and national cyber agency are now working more closely to protect both military and civilian systems, reflecting how cybersecurity has become a core element of national security policy.

The commander of the Czech military’s cyber and information forces, Brigadier General Radek Haratek, said that while conventional defense has centuries of history, the digital domain is still relatively new. Over the past six years, his units have built the foundation of what is now a key branch of the army. Their mission is to protect defense networks, support operations in the information space, and strengthen communication with the public in an era when influence and disinformation campaigns are part of the battlefield.

Officials describe the unit’s work as primarily defensive, though it also maintains the capacity to respond to digital aggression if required. The main focus remains prevention—protecting systems that range from battlefield technologies to administrative networks. The army has also begun using artificial intelligence tools to help identify cyber incidents faster, though senior officers insist that human oversight remains essential.

Czech authorities say Russia remains the most active and persistent threat in cyberspace, often combining cyberattacks with online disinformation. Security experts in Prague warn that such operations are rarely dramatic events but rather long-term efforts designed to probe networks, test reactions and gradually erode public confidence. “These attacks are subtle and continuous,” one defense official said. “They look for weak points over time rather than a single decisive breach.”

The heightened vigilance follows a string of incidents across Europe in recent months. Pro-Russian groups have been linked to disruptive denial-of-service attacks against government websites and news portals, while other intrusions have targeted ministries and communication systems. Earlier this year, the Czech government also accused a China-based hacking group of attempting to infiltrate the foreign ministry’s network, underlining that Prague’s cyber risks come from more than one direction.

In response, the government approved a new National Cyber Security Strategy that will come into force in 2026. It calls for deeper coordination between the military, civilian agencies and private operators that manage critical infrastructure. The plan also outlines a broader education campaign to raise awareness of online threats and to train specialists capable of defending the country’s digital frontier.

A new cybersecurity law due to take effect in November 2025 will extend the obligations of both state bodies and private companies, bringing Czech legislation in line with European standards. It sets stricter requirements for data management, supplier oversight and rapid reporting of cyber incidents.

Experts say these developments show a shift from short-term countermeasures to long-term capacity building. “What began as a reaction to attacks has evolved into a national strategy,” said a Prague-based analyst. “The goal now is to make sure the entire ecosystem—from defense to utilities and media—can withstand constant digital pressure.”

The Czech Republic’s experience mirrors that of many Central and Eastern European nations that have found themselves on the frontline of cyber and information warfare since Russia’s invasion of Ukraine. With a new national plan, updated legislation and growing cooperation with NATO partners, Prague is positioning itself not just to defend against the next attack, but to ensure that its institutions, infrastructure and citizens can operate safely in a world where conflict increasingly begins online.

Source: Czech Armed Forces, and supporting data from CTK, NÚKIB, Eurostat and ENISA.

Poland’s Commercial Property Market Holds Steady with €2.6 Billion in Deals Through Q3 2025

Poland’s commercial real estate investment market has maintained a solid footing through the first nine months of 2025, with total transaction volume reaching €2.6 billion, according to the latest Property Investment Market Report from Avison Young. The result is broadly in line with the €2.8 billion recorded during the same period last year, signaling that investor confidence in the Polish market remains resilient despite ongoing macroeconomic uncertainty.

The report shows that 105 transactions were completed by the end of the third quarter, up from 87 deals a year earlier, reflecting improved liquidity and a broader spread of activity across asset classes. Domestic capital continued to strengthen its position, accounting for over half of all office sector transactions.

“Polish investors are taking advantage of attractive pricing and showing increasing confidence in value-add and opportunistic assets,” said Marcin Purgal, Senior Director of Investment at Avison Young. “Core capital remains cautious, but we expect its return as the economy stabilizes and key transactions close in Warsaw and major regional cities.”

Offices and Warehouses Dominate

The office sector led the market both in volume and deal count, with 36 transactions totaling €899 million. The largest deal of the year so far was Mennica Polska’s acquisition of a 50% stake in Mennica Legacy Tower, a transaction exceeding €100 million. Other notable deals included Warsaw’s Vibe and Plac Zamkowy – Business with Heritage, as well as High5ive I & II in Kraków.

The industrial and logistics sector remained a cornerstone of the market, generating €873 million in transactions—around one-third of the total investment volume. Activity was shaped by major sale-and-leaseback deals, which accounted for nearly half of the sector’s total, including the landmark sale of two Eko-Okna properties to Realty Income, the largest transaction of its kind ever recorded in Central and Eastern Europe.

“The warehouse sector continues to attract long-term investors seeking stable income from strong tenants,” said Bartłomiej Krzyżak, Senior Director of Investment at Avison Young. “However, limited portfolio deals and ongoing price adjustments are still tempering overall liquidity.”

Retail and Residential Sectors Gain Momentum

Investor interest in retail property also held steady, with total volume of €453 million. Retail parks and convenience formats accounted for two-thirds of all transactions, underlining their popularity as resilient and low-risk investment products. Redevelopment projects—often converting underperforming retail assets into residential schemes—made up around 20% of activity.

One of the largest retail transactions was Czech investor My Park’s acquisition of a 10-asset A Centrum portfolio, which highlights cross-border confidence in Polish retail.

The private rented sector (PRS) continues to evolve as a key component of the residential investment market, with total volume of €223 million through Q3. Major acquisitions included deals by AFI Europe, Xior Student Housing, and NREP. Market attention is now focused on Vantage Development’s planned acquisition of 18 Resi4Rent assets, a record-breaking deal that would mark a milestone in Poland’s emerging PRS market.

Stable Fundamentals, Rising Domestic Capital

Avison Young’s analysis points to Poland’s stable economy and strong fundamentals as core reasons for continued investor interest. Domestic capital now represents 23% of total investment volume, up sharply from 10% a year earlier. While institutional “core” investors remain cautious, the firm expects renewed portfolio activity in 2026 as interest rates ease and international capital returns.

“Now is the moment for strategic investors to act,” the report concludes. “As financing conditions improve and yields compress, opportunities in Poland’s commercial real estate market will become increasingly competitive.”

With robust mid-cap activity, a growing role for Polish buyers, and a pipeline of major transactions on the horizon, Poland’s property market appears to be entering a period of renewed stability and selective optimism heading into 2026.

Source: Avison Young, “Property Investment Market in Poland Q3 2025”

Czech Producer Prices Mixed in September as Agriculture Cools and Services Stay Hot

Czech producer prices showed a divided picture in September, suggesting that inflationary pressures are gradually easing but remain uneven across sectors. Agricultural costs lost momentum after a strong summer, industrial producers faced weaker demand, while construction and service prices continued to edge upward, driven by domestic activity and higher labour costs.

Agricultural producers experienced their first notable slowdown in several months. Prices fell compared with August, mainly due to cheaper vegetables, grains and oilseeds, while livestock and dairy prices offered partial support. Compared with last year, farm prices were still higher, though the pace of growth slowed considerably. Animal products, particularly eggs, milk and beef, remained significantly more expensive than a year earlier, while fresh vegetables and potatoes dropped sharply, highlighting how weather conditions and fluctuating consumer demand continue to influence the market.

Industrial prices also declined, reflecting a combination of softer global demand and easing energy costs. The biggest decreases came from the energy and chemical sectors, which have been under pressure from falling wholesale prices. Manufacturers of vehicles and food products saw smaller reductions. Compared with September 2024, producers were charging less for energy and raw materials but slightly more for food and building-related goods such as wood and non-metallic minerals. This divergence indicates that while energy-driven inflation has receded, other production costs remain sticky, keeping margins tight across the industrial sector.

Construction activity continued to display resilience, with work becoming slightly more expensive in September despite a modest dip in building material costs. The sector remains supported by renovation projects and public infrastructure spending, which have offset slower residential development. Builders continue to face higher labour expenses and logistical challenges, contributing to the steady rise in overall construction costs.

The strongest price growth came from the service sector, where business-related activities such as advertising, broadcasting and media surged. Double-digit monthly increases were reported in these categories, suggesting strong seasonal demand. Other professional services, including employment, accounting and legal support, also rose modestly, while transport and property-related services registered slight declines. Over the past year, services have been one of the most persistent sources of cost growth, driven by rising wages and the expanding role of technology and marketing in business operations.

Across the European Union, similar patterns were visible. According to Eurostat’s preliminary data for August, industrial producer prices declined across the EU, with the Czech Republic’s results broadly matching the regional trend. The Czech decline was smaller than in neighbouring Germany and Poland, pointing to a relatively stable industrial base despite subdued demand.

Overall, September’s figures suggest that the Czech economy is moving towards balance after several turbulent years, though the adjustment is uneven. Falling input costs in agriculture and manufacturing could help ease inflation in the months ahead, but construction and service sectors remain under upward pressure. Analysts believe that the key to sustaining this improvement lies in stable energy markets and continued moderation in global commodity prices.

As one Prague-based economist observed, “We’re no longer in a period of runaway costs, but this isn’t full relief either. The Czech economy is settling into a slower, more selective phase of adjustment where each sector tells its own story.”

Source: CZSO and Eurostat

Poland’s 2024 GDP Growth Revised Up as Economy Maintains Steady Course into 2025

Poland’s economy grew slightly faster in 2024 than previously reported, according to new data released by Statistics Poland (GUS), while early 2025 figures indicate the recovery has steadied but begun to lose some momentum amid weaker external demand. The updated figures reflect small but significant adjustments following the integration of final annual results, financial-sector data and revised trade statistics submitted for the EU’s autumn reporting cycle.

GUS now estimates that Poland’s real GDP grew by 3.0% in 2024, a marginal upward revision from earlier assessments of 2.9%. The improved result was driven by stronger investment spending and firm household consumption through the second half of the year. The final quarter of 2024 was particularly robust, with growth reaching 3.5% year-on-year as domestic demand rebounded from earlier cost pressures.

The momentum continued into 2025 but at a slightly slower pace. Growth in the first quarter remained steady at 3.2%, while the second quarter was revised down to 3.3% from the initial 3.4%. GUS attributed the adjustment to a softening trade balance during the spring months, as exports slowed while imports picked up with renewed domestic activity.

Household consumption continued to underpin growth, rising around 1.7% year-on-year in early 2025, supported by stable employment and gradual real wage recovery. Investment activity remained resilient, reflecting an increase in spending on construction and equipment projects, helped by EU-funded infrastructure programmes. However, weaker demand from Germany and other EU partners weighed on exports, slightly reducing the overall contribution from foreign trade.

Compared with earlier estimates, the changes to GDP levels were modest — mostly between 0.1 and 0.2 percentage points — confirming the strength of Poland’s post-pandemic recovery and the stability of its domestic drivers. “The updated data highlight a maturing phase of growth rather than a reversal,” said one Warsaw-based economist. “Household spending remains firm, but global trade headwinds are clearly being felt.”

Domestic demand expanded by just under 4% in 2024, while net exports subtracted around 0.3 percentage points from overall growth due to the widening goods deficit. Government spending remained broadly neutral, neither adding nor subtracting from the total. The revisions also incorporated updated information from the public finance and corporate sectors, aligning the national accounts with Eurostat’s European System of Accounts (ESA 2010).

Across the European Union, Poland remains one of the bloc’s stronger performers. Eurostat data for mid-2025 show EU GDP expanding by just 1.3% year-on-year, underscoring Poland’s above-average pace. Other Central European economies — notably Czechia, Hungary and Slovakia — posted growth closer to 2%, reflecting weaker industrial output and tighter financing conditions.

Looking ahead, analysts expect growth to moderate gradually into 2026 as high borrowing costs, fading fiscal support and weaker export demand take effect. The Ministry of Finance currently projects GDP growth of 2.8–3.0% next year, while the National Bank of Poland (NBP) anticipates that interest rate cuts could begin in early 2026 if inflation remains within its target range.

Despite the slower global outlook, economists view Poland’s fundamentals as sound. Rising wages, strong employment and a steady inflow of EU funds continue to underpin domestic activity. Business confidence has also improved as inflation recedes and energy markets stabilise.

The updated GDP release reinforces Poland’s position as a resilient economy within the EU — one that has transitioned from recovery to sustainable, if slower, expansion.

Source: GUS, Eurostat and NBP

ESMA Finalises ESG Ratings Standards: Lighter Burden, Clearer Rules for 2026

The European Securities and Markets Authority (ESMA) has finalised the detailed rulebook that will shape how companies providing ESG ratings operate in the EU. The new standards, approved on 15 October, simplify earlier proposals but keep firm expectations around transparency, independence, and governance. They will take effect on 2 July 2026, once endorsed by the European Commission and reviewed by the European Parliament and Council.

The framework forms part of the EU’s wider effort to make environmental, social and governance (ESG) ratings more consistent and credible, amid growing investor reliance on such scores to steer sustainable investment decisions.

A More Streamlined Approach

Following months of industry feedback, ESMA eased some of the most demanding aspects of the draft rules. The regulator scaled back the amount of information companies must submit when applying for authorisation, limited ownership mapping to parent companies and subsidiaries, and replaced detailed personal data requests with broader team-level information.

In another shift, companies will no longer need to provide complex data models or assumptions during the approval process—only a clear explanation of their methodologies. The same proportional approach applies to firms outside the EU seeking recognition, who will now submit simpler lists of the ratings they plan to distribute in the bloc.

Maintaining Independence Without Overreach

ESMA kept its focus on avoiding conflicts of interest between ESG rating work and other business activities. However, the regulator dropped prescriptive requirements such as separate office space or access systems, choosing instead to allow flexibility as long as independence can be demonstrated.

Firms will be expected to have robust internal controls, including restricted data access, conflict-of-interest declarations renewed each year, and periodic assessments of how effectively safeguards are working. These measures aim to ensure ratings remain objective even when produced within larger, diversified organisations.

Clarity for Public Disclosures

On public transparency, ESMA has opted for a simpler format. Companies will still need to publish information about their methodologies and governance, but they can now use cross-references or links to other documents instead of repeating data.

The final standards drop the earlier proposal requiring firms to name every rated company, focusing instead on how methodologies are applied and updated. Providers will also have to explain how they gather and verify input from rated entities, use scientific evidence, and account for both risk and impact considerations. Clear rules will now define what qualifies as a “material change” in a methodology, helping investors understand how and when ratings evolve.

What This Means for the Market

For ESG rating providers, the revised standards represent a more manageable compliance effort, though still one requiring careful preparation. Firms operating within large financial groups will need to revisit how they separate ESG rating activities from other functions such as research or investment management.

Financial institutions and investors relying on these ratings can expect greater consistency and insight into how scores are formed. The focus on clear documentation, engagement, and independence is intended to make ESG ratings easier to interpret and more trustworthy across the EU.

The rulebook now moves to the European Commission for formal adoption, with application scheduled for mid-2026. It marks another milestone in Europe’s ongoing drive to bring accountability and transparency to sustainable finance—one that will likely influence global practices as other jurisdictions look to follow suit.

Source: CMS

EU Divided Over Flight Delay Compensation as Lawmakers Back Passenger Rights

European lawmakers have voted to uphold one of the most recognizable protections for travellers: compensation for flight delays of more than three hours. The decision, passed by the European Parliament’s legal affairs committee this week, reaffirms the chamber’s support for strong consumer rights, even as EU governments push to loosen the rules in favour of airlines.

The reform marks the first major review of Europe’s passenger rights framework in more than a decade. While lawmakers agreed to modernize elements of the existing system, they rejected proposals from the Council of the EU to raise the delay threshold to four or even six hours before passengers could claim financial compensation. Parliament’s stance preserves the principle that travellers who arrive three hours or more behind schedule are entitled to reimbursement ranging from €300 to €600, depending on flight distance.

The Parliament’s lead negotiator, Bulgarian MEP Andrey Novakov, said the decision was about protecting everyday citizens, not abstract regulations. Lawmakers also backed measures requiring airlines to allow cabin luggage free of charge, seat children next to parents without added cost, and speed up refund procedures when flights are cancelled.

Consumer groups praised the outcome as a clear victory for passengers. The European Consumer Organisation called the vote “encouraging,” saying it reinforced the idea that consumer rights should evolve toward greater protection, not less.

But airlines and several EU member states have pushed back, warning that the three-hour rule is too rigid. Industry representatives argue that extending the limit would reduce unnecessary payouts caused by issues outside their control—such as weather or airport congestion—and allow carriers more time to deploy backup aircraft or crews. Some governments, including France, Italy, and the Netherlands, have expressed support for raising the delay window, claiming that aligning rules with operational realities could improve long-term reliability and environmental efficiency.

The European Council’s own position, agreed in June, would lengthen the delay requirement to four hours for shorter flights and six hours for long-haul journeys. The plan also revises compensation levels and clarifies what qualifies as extraordinary circumstances exempting carriers from liability.

This sets the stage for tense negotiations among the Parliament, the Council, and the European Commission. Parliament’s delegation is expected to enter talks with a strong mandate to resist any rollback of passenger entitlements. Supporters of the current system say the three-hour rule has become a cornerstone of European travel rights and a symbol of accountability in the aviation industry.

Whether that standard survives the upcoming negotiations will reveal how far the EU is willing to go to balance passenger protection against the financial realities of a struggling airline sector.

Report Examines the Market Realities of Modular Construction

A new white paper from Periskop Partners provides a clear and data-driven look at how modular construction could help address housing shortages and cost pressures in Europe. The report, “Modular Construction at a Glance: Market, Opportunities, and Key Success Factors,” presents modular building as an effective approach for accelerating project delivery and improving sustainability, while also highlighting the practical limits that developers and investors must consider.

According to the analysis, factory-based production can shorten construction timelines, improve quality control, and reduce on-site waste and emissions. The use of digital planning tools such as Building Information Modelling (BIM) and automation technologies further enhances coordination between stakeholders and minimizes delays. However, the authors caution that these efficiencies depend on early decision-making, standardized processes, and strong alignment between designers, manufacturers, and contractors.

The report emphasizes that modular systems are not suited to every project or location. Transport logistics, site access, and early capital commitments can affect feasibility, while design flexibility remains more restricted than in conventional construction. Successful adoption, the study notes, requires disciplined planning from the earliest project stages and a clear understanding of where modular methods provide the greatest benefit.

In assessing the DACH region’s market, Periskop Partners finds a fragmented landscape made up of diverse suppliers—from timber specialists to industrial steel module producers—each offering different approaches to sustainability, prefabrication depth, and cost structure. The report offers a comparative overview to help developers and investors evaluate potential partners and navigate this evolving sector.

While modular construction continues to attract growing interest as a solution for the housing and public infrastructure sectors, Periskop’s research strikes a realistic tone. It positions modular building as a promising but complex tool that demands careful planning, reliable partners, and long-term investment in industrial capacity. The findings suggest that modular construction’s value lies not in replacing traditional methods outright, but in integrating off-site manufacturing where it offers measurable advantages in speed, quality, and sustainability.

Source: Periskop Partners

YIT Advances Third Phase of Ranta Barrandov Project in Prague 5

Developer YIT Stavo has completed the main structural works for the third phase of its Ranta Barrandov residential project in Prague 5. The phase includes 57 apartments, of which less than half remain available for sale. The buildings’ frameworks, roofs, ceilings, and exterior walls are finished, while installation of windows and interior fittings is now under way. Work on wiring, facades, plastering, and interior layouts is progressing in parallel.

The new phase comprises two residential buildings and one mixed-use building. Apartment sizes range from 30 to 84 square meters in configurations from studios (1+kk) to three-room units (3+kk). The development includes several modern comfort features such as underfloor heating, triple-glazed windows, and smart home readiness. Upper-floor units will include air conditioning, and preparation has been made for external shading systems. Shared facilities will include storage for strollers, a space for washing bicycles and pets, and parking areas. Three commercial units on the ground floor are planned for small-scale retail or services.

According to Dana Bartoňová, Sales Director at YIT Stavo, the project is on schedule and continues to attract steady demand for energy-efficient housing in the Barrandov district. She added that the developer plans to follow this phase with a fourth and final stage of construction.

Consistent with YIT’s focus on sustainable design, the project will feature photovoltaic panels to generate on-site renewable energy and heat pumps as the primary source of heating. Portions of the structure use prefabricated elements to improve construction efficiency, while green roofs, LED lighting, and charging points for electric vehicles—including both private wallboxes and public chargers—are also part of the plan. Landscaping and new greenery will form an integral part of the completed development.

Ranta Barrandov is located in a quiet part of Prague 5, close to public transport links connecting to metro lines B and C. The area offers schools, shops, restaurants, and healthcare facilities within walking distance, as well as easy access to Prokopské údolí, Barrandovské skály, and Malá Chuchle Forest Park, providing residents with proximity to both urban amenities and green space.

REIT Markets Fall as U.S. Office Sector Leads Weekly Declines

Real estate investment trusts (REITs) mirrored broader market weakness in early October, with the U.S. sector posting its sharpest drop in several months. All major U.S. property indexes ended the week to October 10 lower, led by steep losses in office-focused funds, which were hit hardest as investor sentiment turned risk-averse.

The overall U.S. REIT benchmark recorded a fall of more than 3 % for the week, in line with declines in major equity indexes such as the S&P 500. Analysts linked the pullback to renewed uncertainty around interest rate expectations and slower leasing activity across parts of the commercial market. Office REITs registered the deepest losses, slipping by more than 8 %, while hotel and healthcare trusts also weakened. Only storage-oriented funds saw limited movement, reflecting their more stable income streams.

The downturn underscores how sensitive real estate equities remain to broader economic signals. Despite evidence that inflation in the United States continues to moderate, investors appear wary of prolonged higher financing costs that could weigh on property values and refinancing activity.

Across the Atlantic, the mood was more subdued. European-listed REITs also edged lower over the same period, but declines were modest compared with those in the U.S. The main European real estate index slipped by less than one percent, suggesting that regional markets were less affected by the latest bout of investor caution.

Market analysts note that European REITs have shown relative resilience in recent months, supported by signs of economic stabilization and fewer interest rate shocks. However, the sector remains constrained by low transaction volumes and a cautious approach from lenders.

While the latest movements are unlikely to signal a structural shift, they highlight the fragile balance facing real estate investors worldwide. As central banks prepare to adjust policy rates heading into 2026, both U.S. and European property markets remain under scrutiny for signs of how the next phase of monetary easing—or delay—could shape valuations in the months ahead.

Source: S&P Global

Panattoni Begins Construction of New Logistics Park in Rzeszów, Signs Three Tenants for First Phase

Panattoni has started work on a new logistics complex in the Podkarpacie region, continuing its expansion in southeastern Poland. The developer, acting on behalf of a real estate fund managed by Jet Investment, has acquired a 13-hectare site for Panattoni Park Rzeszów North II.

The first stage of the project will include two buildings totaling more than 42,000 square meters, with three tenants already confirmed. Once fully developed, the park will provide over 110,000 square meters of modern industrial space.

The first facility, covering about 7,300 square meters, is being constructed as a build-to-suit project for a major courier company that plans to open a regional sorting center in late 2026. Construction is scheduled for completion six months earlier to allow for installation of automated logistics systems.

A second hall of around 35,000 square meters will be developed concurrently. Space has already been secured by a logistics operator (9,900 sqm) and an automotive e-commerce company (4,000 sqm), while the remaining area is being marketed to potential tenants.

The investor, Jet Industrial Lease SICAV, is a Central European fund focused on industrial properties and managed by Jet Investment, which also operates private equity and venture capital portfolios.

Located near the A4 motorway and S19 expressway (Via Carpathia), the site provides direct access to regional and international transport corridors linking Poland with Slovakia and Romania. Rzeszów Airport lies just four kilometers away, and the city center is within a ten-minute drive.

The complex is being developed to BREEAM Excellent standards, incorporating measures to reduce energy and water consumption, optimize air quality and acoustics, and increase natural lighting. One tenant has also chosen to install photovoltaic panels to support on-site renewable energy generation.

Panattoni has been steadily expanding in the Podkarpacie region, where it has already delivered nearly 350,000 square meters of industrial space, including facilities for Phoenix Contact E-Mobility, DB Schenker, LPP, and BSH Home Appliances Group. The company’s continued activity in the region reflects strong logistics and manufacturing demand driven by its proximity to cross-border trade routes and a skilled local workforce.

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