Syria to Redenominate Currency and Push Forward with Economic Reforms

Syria’s Central Bank has confirmed plans to redenominate the national currency by removing two zeros from the Syrian pound as part of a broader strategy to stabilize the economy, reduce inflation, and restore investor confidence. Governor Abdelkader Husrieh outlined the reforms, which also include new banknotes, tighter monetary discipline, and modernization of the financial sector.

The redenomination, expected to roll out before the end of 2025, will simplify payments, cut printing costs, and reduce the need to carry large bundles of cash. New notes will avoid controversial Assad-era imagery and focus on national identity, with a public awareness campaign planned to ease the transition. The launch will include a dual-currency phase, allowing old and new notes to circulate simultaneously for up to a year. Printing contracts are set to be awarded to trusted international companies, with Syria moving away from exclusive reliance on Russian state firms.

The reforms build on recent efforts to stabilize the pound, which has strengthened by roughly 30–35 percent in recent months under stricter financial controls. The central bank allows the market to set exchange rates but intervenes to curb speculation and unfair pricing. Officials have also halted deficit financing, helping ease inflation, and are developing tools such as wider digital payments to improve monetary control.

Syria is also re-establishing its position in global finance. In June, the country completed its first direct international bank transfer via the SWIFT system since the start of the civil war, sending funds to an Italian bank. Foreign reserves are expected to grow for the first time in years, raising hopes that Syria could eventually serve as a financial hub for Lebanon, Jordan, and Gulf markets.

Alongside monetary measures, the Central Bank is drafting legal and institutional reforms, including deposit insurance to protect savings, a credit bureau to expand lending, and new rules to encourage mortgages and debt markets. A digital payments strategy is being developed, with plans to license fintech firms, strengthen anti-money laundering measures, and introduce modern banking tools to reduce reliance on cash.

Governor Husrieh acknowledged that challenges remain, but said gradual, carefully managed reforms could mark the beginning of Syria’s economic recovery. “The new currency, supported by digital payments and stronger institutions, can turn the pound into a symbol of recovery,” he said.

UK Employers Face New NDA Rules from October

Employers in England and Wales will need to revise confidentiality agreements and settlement contracts from October 1, 2025, when provisions of the Victims and Prisoners Act 2024 come into force. The new rules mean non-disclosure agreements (NDAs) cannot prevent victims of crime, or those who reasonably believe they are victims, from speaking to law enforcement, regulators, lawyers, professional advisers, victim support services, or close family members.

The Ministry of Justice has issued guidance confirming that NDAs signed before October remain subject to existing law. Disclosures made primarily to release information into the public domain will still fall outside the new protections.

The National changes come as part of a broader tightening of rules around NDAs. In July, the government introduced an amendment to the Employment Rights Bill that would ban confidentiality clauses covering allegations of discrimination or harassment. Although no date has been set, the ban would prevent employers from using NDAs to conceal workplace misconduct.

Legal experts say the October reforms will require only limited drafting adjustments, since current NDAs already include carve-outs for whistleblowing and criminal reporting. However, they warn employers to ensure templates reflect the new list of permitted disclosures. Solicitors regulated by the Solicitors Regulation Authority (SRA) are reminded that including unenforceable clauses for deterrent purposes breaches professional standards.

If the wider ban on NDAs in harassment and discrimination cases is implemented, employers may face more tribunal litigation and greater public scrutiny of internal investigations. Analysts suggest businesses will need to strengthen reporting systems and ensure transparent handling of workplace complaints as part of a broader cultural shift toward prevention.

Source: CMS

Czech Budget Revenues on Track to Exceed Plan, Council Warns of Spending Risks

Revenues in the Czech state budget for 2025 are expected to surpass planned levels, but risks remain on the expenditure side, the National Budget Council (NRR) said in its quarterly report on public finances. The council highlighted potential shortfalls in funding for renewable energy subsidies and salaries of non-teaching staff in education, and also criticized the classification of certain defense expenditures in the draft budget for 2026.

The NRR said Czech public finances are on course for their strongest performance since 2019, supported by a recovering economy and robust growth in tax and insurance revenues. However, it warned that structural imbalances persist and that further consolidation will be required, particularly in preparations for the 2027 budget.

Revenue from the sale of emission allowances is significantly lower than projected. While CZK 30 billion was expected for the full year, only CZK 7.9 billion had been collected by mid-year. The council has previously criticized what it described as overly optimistic estimates of this revenue stream.

On the spending side, the NRR identified gaps in funding for education and renewable energy support. An additional CZK 10 billion is needed for non-teaching staff salaries, of which only CZK 4.2 billion has so far been secured. For renewable energy, the state has already drawn heavily on its budget reserve and redirected CZK 900 million from funds earmarked for flood recovery. The council noted that a similar reallocation occurred in 2024, when CZK 14.1 billion of the CZK 30 billion flood budget was diverted to other purposes.

The Ministry of Finance defended the practice, saying the transfers complied with budget rules. It argued that less than CZK 9 billion would be required for flood programs this year, freeing up funds for other urgent expenses.

The council also raised concerns over next year’s draft budget, particularly the allocation of CZK 20.1 billion for defense spending within the Ministry of Transport chapter, compared to CZK 100 million in 2025. It called on the government to clarify which transport expenditures are now considered part of national defense.

In response, the Finance Ministry said NATO rules allow infrastructure spending to be counted toward defense if facilities serve both civilian and military purposes. It also stressed that the draft budget remains under discussion and is subject to change during government negotiations.

Billionaire Michal Strnad Acquires Ferrari Importer Scuderia SF Praha

Czech billionaire Michal Strnad, owner of the Czechoslovak Group (CSG), has acquired Scuderia SF Praha along with its sister companies Scuderia MC Praha and Scuderia Praha Racing, which handle Ferrari imports, Maserati sales and service, and motorsport activities. The deal is currently under review by the Office for the Protection of Competition (ÚOHS).

According to the competition authority, the merger mainly concerns wholesale and retail distribution of cars, related services, and motorsport. The transaction is being assessed under a simplified procedure, with a decision expected within 20 days. The purchase price has not been disclosed.

Scuderia SF Praha was created in early 2023 following the split of the original Scuderia Praha into three separate firms. Scuderia SF Praha focused on Ferrari distribution, Scuderia MC Praha on Maserati sales and servicing, and Scuderia Praha Racing on competitive racing. The current owner listed in the Register of Beneficial Owners is Zdeněk Kubát, a former Penta manager.

Financial filings show that Scuderia SF Praha nearly tripled its net profit in 2024 to CZK 75.8 million, while turnover grew by 20 percent to CZK 1.43 billion.

The acquisition was made through Altavia Trade, a company solely owned by Strnad but not formally part of CSG. Strnad is among the wealthiest Czechs, with Forbes ranking him fourth in May 2025 with assets of CZK 230.5 billion. Other rankings, including those published by Euro and e15.cz in late August and early September, placed him either first or fourth, with estimates ranging from CZK 239 billion to CZK 330 billion.

Source: CTK

Tusk Stresses Western Unity at Paris Meeting on Ukraine

Prime Minister Donald Tusk underlined the importance of unity between Europe and the United States in supporting Ukraine during a meeting of the “Coalition of the Willing” in Paris on September 4. The gathering brought together more than 30 countries backing Kyiv, with participants including European Commission President Ursula von der Leyen, Ukrainian President Volodymyr Zelensky, French President Emmanuel Macron, Dutch Prime Minister Dick Schoof, and Finnish Prime Minister Alexander Stubb.

Speaking after the talks, Tusk said Europe must act jointly with the United States to maintain pressure on Russia. He stressed that Poland will continue to serve as a key logistics hub for aid to Ukraine but will not send troops. “We have repeatedly emphasized that we do not expect the sending of soldiers, even after the end of the war. In Poland, there is the largest hub for organizing aid for Ukraine. This is a sufficient and exceptional task,” Tusk said.

The meeting also included a videoconference with U.S. President Donald Trump. According to Tusk, discussions focused on ways to push Russia toward negotiations. “Everyone is disappointed by the lack of results, despite the efforts of the European countries and the President of the United States,” he said, adding that Moscow appeared to be stalling.

Participants also voiced concern over China’s recent military parade attended by the leaders of Russia, North Korea, and Belarus. Tusk described it as “a demonstration that bodes badly for future international relations,” underscoring the need for Western cohesion.

In bilateral talks with Macron, Tusk said Poland and France agreed to oppose the EU’s trade deal with Mercosur countries unless stronger safeguards are put in place. “If it turns out that there is too much cheap beef, Europe will have defence mechanisms in stock, such as tariffs or suspending imports,” Tusk said. The two leaders also discussed climate policy, with Poland insisting that decisions on CO2 reduction targets should be taken by the European Council, allowing member states greater leverage in negotiations.

Fitch Ratings Cuts Global Credit Outlook as Growth Slows

Fitch Ratings has lowered its global credit outlook in its mid-year update for 2025, citing a deteriorating growth environment driven by higher tariffs, policy uncertainty in the United States, and heightened geopolitical risks.

The agency now forecasts global real GDP growth at 2.2 percent in 2025, a sharp slowdown from 2.9 percent in 2024. Fitch said weaker trade flows and reduced investment confidence are weighing on global activity, with advanced economies particularly exposed to the impact of U.S. tariff measures.

“Global growth momentum is fading, and the risks are increasingly tilted to the downside,” the agency noted in the update released on July 2. Fitch highlighted that while some emerging markets continue to post stronger growth, the overall slowdown is broad-based and likely to pressure credit markets in the coming months.

The revised outlook comes amid concerns over U.S. fiscal and trade policy direction, coupled with geopolitical tensions that are adding to financial market volatility. Fitch warned that the weaker economic backdrop could translate into tighter financing conditions for both sovereign and corporate borrowers.

Despite these challenges, Fitch emphasized that most banking systems remain resilient, with capital buffers stronger than in previous downturns. However, the agency cautioned that prolonged uncertainty and sluggish growth could erode credit quality if the current trends persist.

Survey reveals persistent inequalities in European working conditions

A new pan-European survey has found that while job quality across Europe has generally improved over the past decade, sharp inequalities remain between men and women and among workers in different regions.

The European Working Conditions Survey 2024, conducted by Eurofound, draws on interviews with more than 36,000 workers in 35 countries and assesses seven dimensions of job quality. The results show progress in areas such as working time, skills development, and physical working environments, but highlight widening gender disparities in social relations at work, job intensity, and exposure to risks.

One of the clearest improvements has been a decline in excessively long working hours. The proportion of employees working more than 48 hours per week has fallen from 19 percent in 2005 to 11 percent in 2024. This has narrowed gender gaps in working time quality, with men now scoring at similar levels to women for the first time.

Workers also reported greater opportunities to apply and expand their skills, with the “skills and discretion” index showing the strongest gains. Men in particular have seen improvements in their physical work environment.

However, the survey found that women’s working conditions are worsening in other respects. The social environment at work has deteriorated for women since 2010, largely due to higher exposure to verbal abuse and other negative behaviours. Women are also more likely to work in high-intensity sectors such as healthcare and education, where frequent interruptions and emotional strain are common.

Other challenges include the rise of sedentary work, with 40 percent of Europeans reporting prolonged sitting during working hours. This figure is higher among women (42 percent) than men (39 percent).

Job security and financial predictability remain uneven across Europe. Although overall fear of job loss has declined, men continue to report better career prospects than women. Meanwhile, 15 percent of workers across Europe are unable to predict their income over the next three months, with uncertainty particularly acute in Romania and Greece, compared to more stable conditions in Austria and Germany.

Eurofound’s findings underline that while average job quality has improved, these gains are unevenly distributed. The agency concluded that policymakers must look beyond broad trends to address the vulnerabilities and inequalities that continue to shape working lives across Europe.

EU market production falls slightly in June

Market production in the European Union edged down in June 2025, according to Eurostat data released today. The Total Market Production Index (TMPI), which tracks industry, construction, trade, and services, declined by 0.2 percent in the EU compared with May, while the euro area recorded a sharper fall of 0.4 percent.

The decrease in the EU was largely driven by lower industrial production, which fell by 1.0 percent, alongside declines in construction (–0.5 percent) and services (–0.1 percent). Trade activity was the only component to grow, rising by 0.6 percent.

On an annual basis, however, market production remained in positive territory. Compared with June 2024, the TMPI increased by 2.2 percent in the EU and by 1.9 percent in the euro area.

The TMPI is a composite indicator under the European Business Statistics Regulation, combining data from short-term statistics across most of the market economy. It covers industry (mining, manufacturing, and energy), construction, trade (including motor vehicles, wholesale, and retail), and a broad range of services such as transport, accommodation, ICT, real estate, and professional and business support services.

While the index generally moves in line with GDP trends, Eurostat notes that differences in coverage and methodology can lead to divergences, particularly over longer periods.

Source: Eurostat – Total Market Production Index, June 2025.

Slovak Economy Grows 0.6% in Second Quarter, Slowest Pace in Over Two Years

Bratislava – Slovakia’s economy grew by 0.6 percent year-on-year in the second quarter of 2025, marking its slowest expansion in two and a half years, according to preliminary data. The modest increase was driven primarily by household and public sector consumption, while investment activity revived after a year of decline. However, weaker results in key economic sectors, notably real estate and construction, offset much of the positive momentum.

Gross domestic product (GDP) at constant prices reached €34.5 billion in the quarter, with growth remaining below one percent for the second consecutive quarter. After seasonal adjustment, GDP rose by 0.2 percent compared with the first quarter of 2025. Gross value added totaled €23.5 billion, essentially unchanged from the previous year.

Industry, the largest sector of the Slovak economy with a 17 percent share of total value added, grew by 2 percent year-on-year. Gains came from metal production, electrical equipment manufacturing, and transport equipment, while declines in machinery, equipment, and chemicals weighed on results. Trade, transport, accommodation, and food services posted a 0.9 percent increase, while financial and insurance activities grew by 1.5 percent. Public administration also registered a modest gain. In contrast, real estate activity fell by 4.5 percent, construction declined by 1.8 percent, and information and communication slipped by 1.1 percent.

From the expenditure side, GDP growth was supported by domestic demand. Household consumption rose by 2 percent, up from 0.5 percent in the previous quarter, while public sector spending increased by 2.2 percent. Gross fixed capital formation grew for the first time in three quarters, though overall gross capital formation fell by 4.2 percent due to lower inventories.

Exports rose by 3 percent and imports by 2.9 percent, producing a slightly positive trade balance – the first surplus in a year. For the first half of 2025, GDP increased by 0.7 percent, with nominal output reaching €65.6 billion. Domestic demand expanded by 1.8 percent over the same period, but foreign trade developments exerted a drag, as import growth outpaced exports, resulting in a trade deficit of €47 million.

Poland: Regional Business Sentiment Improves in August, but Labour Costs Remain a Key Barrier

Business sentiment across Poland’s regions improved in August 2025 compared with the same month a year earlier, according to the latest Business Tendency Voivodship Report published by the Statistical Office in Zielona Góra. The Regional Business Climate Indicator (R-BCI) rose in most sectors, particularly in accommodation and catering, transportation and storage, and information and communication.

On a year-to-year basis, 10 voivodships reported stronger conditions in accommodation and catering, while nine noted improvements in transport, storage, and ICT. Manufacturing sentiment improved in seven voivodships, and six reported gains in construction and both wholesale and retail trade. Month-to-month, sentiment was strongest in manufacturing, trade, and ICT, though in most other sectors it weakened.

Despite the more positive outlook, many firms continued to cite barriers to activity. High labour costs were the most frequently mentioned constraint, especially in construction and accommodation. Economic uncertainty was also widely reported, particularly by companies in transport, storage, and wholesale trade. High fiscal burdens remained a challenge in several sectors.

Investment expectations showed moderate optimism. Most entrepreneurs forecast stable investment levels compared to last year, especially in ICT. Where changes were expected, reductions in spending were more common than increases. Investment plans for 2025 are focused mainly on machinery and technical equipment in manufacturing and construction, transport assets in logistics, and IT equipment and staff training in the information and communication sector.

While sentiment varied by region, accommodation and catering stood out with positive forecasts in nine voivodships, contrasting with the more cautious outlooks elsewhere. Overall, the report suggests that while Poland’s business climate is improving, structural challenges and cost pressures continue to weigh on enterprises.

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