Digitized construction permitting systems comply with law, but fail users, says Minister Kulhánek

Czech Minister for Regional Development Petr Kulhánek confirmed today that the digital systems for handling construction permits meet legal requirements, though they remain far from user-friendly. He acknowledged persistent complaints from both developers and officials, citing ongoing issues that the ministry is working to address. The Czech Chamber of Architects and the Association of Municipal Secretaries have similarly voiced concerns about usability problems and insufficient system preparedness.

These systems were rolled out amid controversy: In late 2024, a transitional “technical bypass” was introduced, allowing authorities to operate both legacy and digital platforms concurrently, in light of numerous audits noting critical flaws. The government has since launched a new tender process for a full replacement system expected to be operational by January 2028 at the latest.

Kulhánek attributed the shortcomings to the ongoing transitional phase. He highlighted that the Ministry’s IT leadership, including Eva Pavlíková, is conducting market consultations to improve functionality. A new system contract is planned to be finalized by the next government term.

Critics have gone further: an audit found that the systems did not meet user needs, lacked proper documentation, and suffered from poor project management. Still, the underlying technology was deemed suitable for future development.

The flawed launch ultimately led to the dismissal of former Minister Ivan Bartoš and contributed to his party’s exit from the coalition. Kulhánek and industry leaders hope the revised leadership and system overhaul will finally deliver a functional, digital construction permit platform.

Plug-in hybrids outpace electric vehicles in August—but EU trends favor EV growth

fletcher@cijeurope.com
4 September 2025
Other

In August 2025, plug-in hybrid electric vehicles (PHEVs) overtook battery electric vehicles (BEVs) in the domestic passenger car market, according to the Association of Automobile Importers. While BEV registrations rose year-on-year from 781 to 840 units, PHEVs surged from just 47 in August 2024 to 948—a near twentyfold increase. As a result, PHEVs accounted for over five percent of new car registrations in August, while BEVs remained below that threshold.

Despite the August turnaround, BEVs maintain the upper hand for the year to date. By August 2025, EV registrations totaled approximately 8,800 units, versus around 6,800 for PHEVs. Škoda leads the PHEV segment with 1,310 units sold so far, followed by Hyundai, Toyota, Volkswagen, and Volvo, each with sales exceeding 500 units.

These domestic figures mirror broader European trends: From January to July 2025, PHEVs captured 8.6 percent of the EU market, up from 6.9 percent in 2024. BEVs held a larger share at 15.6 percent . Hybrid-electric vehicles (HEVs), which include non-plug-in hybrids, remained the most popular choice among EU consumers, commanding 34.7 percent of the market .

Historically, the EU has seen strong momentum in electrified vehicles. Hybrid and plug-in models continue to climb, while petrol and diesel car registrations have declined sharply—falling to under 38 percent combined, down from about 48 percent in the previous year . The rapid rise of EV sales has been notable too: over one million BEVs were registered across Europe by July, capturing a 15.6 percent share of the market .

In summary, while PHEVs dominated Polish dealerships in August—a reflection of shorter-term demand shifts—BEVs continue to show stronger cumulative growth, consistent with European patterns of gradual electrification. The marketplace remains fluid, with hybrids and fully electric models each playing a significant role in the transition.

Nearly half of ice cream and ice samples in Czech inspections fail hygiene tests

The Czech Agriculture and Food Inspection Authority (SZPI) reports that hygiene problems among ice cream sellers remain widespread, with nearly half of samples failing to meet safety standards. So far in 2025, 46 percent of tested scoop and draught ice creams have been rated unsatisfactory, continuing a trend observed in previous years.

Out of 146 ice cream samples inspected this year, 67 exceeded acceptable hygienic limits, according to SZPI spokesperson Pavel Kopřiva. Laboratory analyses found high levels of bacterial colonies, which can cause gastrointestinal problems. Inspectors noted recurring issues such as insufficient cleaning of machines, poor adherence to production processes, and inadequate staff training. A common malpractice involves sellers returning leftover ice cream to machines the following day instead of discarding it, leading to bacterial contamination.

The situation was no better for ice used in drinks. Of 53 samples examined, 30—57 percent—failed to meet standards. The main causes were poor hygiene practices and irregular disinfection of ice makers. Kopřiva emphasized that these problems have persisted over the long term without signs of improvement.

Inspectors typically target higher-risk establishments, though routine checks are also carried out at compliant businesses. Where violations are detected, authorities can ban equipment use, halt production, and require thorough sanitation followed by microbiological testing before sales may resume. Administrative proceedings for fines are also initiated against non-compliant operators.

Food safety concerns with ice cream are not unique to the Czech Republic. Similar issues have been reported across Europe. In Slovakia, the State Veterinary and Food Administration (ŠVPS SR) has also found high rates of hygiene violations in draught ice cream, with over 40 percent of samples failing in some regions in recent years. The European Food Safety Authority (EFSA) has repeatedly warned that inadequate cleaning of dispensing machines is one of the most common risk factors for bacterial contamination in frozen desserts and ice products.

While the SZPI stresses that its results are based on targeted, risk-based inspections rather than random sampling, the consistently high proportion of unsatisfactory findings suggests that many operators continue to underestimate the risks of poor hygiene in production, storage, and sales. According to food safety experts, maintaining strict sanitation routines and proper staff training remain essential for protecting consumer health.

Short-term rentals in Slovakia: Profitable but heavily regulated

Short-term rental of apartments through platforms such as Airbnb or Booking.com is becoming increasingly popular in Slovakia, offering significantly higher returns than traditional long-term leases. Yet, alongside the potential profits come administrative obligations, tax liabilities, and legal risks that many owners may underestimate.

Legal experts stress that tourist rentals are classified as business activities. “Short-term rental of real estate is considered a business and therefore requires a trade license or operation through a legal entity, most commonly a limited liability company,” said Erik Schwarcz of Fairsquare. Property owners are obliged to notify their local authority, register with the tax office, and comply with sector-specific regulations. Failure to do so may result in fines or, in cases of unauthorized business activity, even criminal proceedings.

Tax compliance is a particular focus of authorities. Since January 2023, platforms such as Airbnb and Booking.com have been obliged under EU’s DAC7 directive to share host revenue data with tax administrations across the European Union, including Slovakia. This measure was introduced to curb tax evasion in the short-term rental sector, which in cities like Bratislava and Košice has grown rapidly in recent years. Anyone offering short-term accommodation must file a tax return and pay income tax. In addition, accommodation tax is levied on each overnight stay, with rates set by municipalities. In Bratislava’s Old Town, for example, the fee is €3.50 per night, one of the highest in the country.

The issue of regulating short-term rentals is not unique to Slovakia. Across Europe, cities such as Amsterdam, Barcelona, and Berlin have introduced strict caps or permit systems to control the expansion of short-term lets, citing impacts on housing affordability and community cohesion. The European Commission has also implemented new rules (Regulation (EU) 2022/2065, the Digital Services Act) requiring platforms to ensure greater transparency for users and regulators.

In Slovakia, the debate continues between those who see short-term rentals as a “gold mine” and others who stress the risks and administrative demands. While higher yields are tempting, experts caution that proper licensing, tax compliance, and awareness of municipal rules are essential to avoid costly penalties.

Source: SITA

Brno issues final permit for second stage of Kamenný vrch housing project

The city of Brno has obtained a final building permit for the second stage of the cooperative housing development at Kamenný vrch II. Together with the previously approved first stage, this allows the city to launch the tender process for a contractor to build the entire project, which is budgeted at around CZK 2.3 billion. The development will deliver 334 apartments, and demand for the units remains strong, according to city officials.

Kamenný vrch is the city’s pilot site for cooperative housing, designed to provide a more affordable alternative to commercial residential projects. The scheme has faced delays of several years, but the current steps clear the way for construction. A public procurement process is already underway to secure technical supervision and occupational safety oversight, with bids accepted until 15 September. The contract for the general contractor will follow. Construction is scheduled to begin in spring 2026, with completion expected in 2029.

Interest in the project has been steady since applications opened in 2018. Of the initial 800 applicants, 206 remained active candidates earlier this year. A new application round, held between May and June 2025, attracted additional interest, and the city has confirmed there are now sufficient applicants to allocate the units, though registration remains open.

Brno is also preparing cooperative housing in other parts of the city. Planned sites include Aleja, Přízřenice, and the area bordered by Francouzská, Hvězdová, Bratislavská, and Stará streets. In addition, cooperative apartments are planned as part of a reconstruction project at Mostecká Street 16.

Source: CTK

Brno secures key land for flood protection project through developer cooperation

fletcher@cijeurope.com
4 September 2025
Land

The city of Brno has reached an agreement to acquire two plots of land in the Štýřice district, completing the land assembly required for the continuation of its flood protection measures. The deal was made possible through cooperation with the development company MS Trnitá 2, which facilitated the purchase from the original owner and resold the land to the city at a price consistent with an expert valuation.

The municipality had faced a long-running dispute with the landowner, who demanded CZK 31.1 million for the plots—well above the CZK 25.35 million valuation set by experts under the city’s new zoning plan. Unable to accept the higher price, the city had initiated expropriation proceedings, which stalled progress. Developers with projects in the Trnitá area, however, were also keen to see flood control works proceed, as they are a precondition for further construction, including the planned new railway station and residential developments.

“The problem seemed insoluble for years,” said Jiří Oliva, Brno’s councillor for property. “Thanks to cooperation with the developer, we managed to secure the land at the expert price, which is essential for moving forward with both the flood protection and the development of the new southern quarter.”

The acquisition will require final approval by Brno’s councillors at their September meeting. If confirmed, construction of flood protection measures in the Trnitá area could begin as early as next year.

This summer, the city completed another section of its flood control system, covering the area from the Riviera through Poříčí to the viaduct at Uhelná Street. That project, valued at CZK 1.5 billion excluding VAT, took three and a half years to finish.

Source: CTK

Fewer Poles take up seasonal work abroad despite higher pay

fletcher@cijeurope.com
4 September 2025
Jobs

The share of Poles choosing seasonal employment abroad has fallen in recent years, with just 11 percent working outside the country this summer, according to the August edition of the Polish Labour Market Barometer by Personnel Service. While higher wages remain the primary motivation, the gap between domestic and foreign earnings has narrowed, reducing the appeal of such trips.

Survey results show that 69 percent of respondents did not consider seasonal work abroad this year, while 21 percent initially planned to leave but ultimately stayed in Poland. Among those who did go abroad, 3 percent did so for the first time, 6 percent worked irregularly, and only 2 percent make it a regular part of their employment calendar.

Demographic differences are evident. Women more often reported no interest in working abroad compared with men (72 percent versus 66 percent). Younger workers expressed more openness: one-third of respondents aged 18–24 considered seasonal employment abroad but decided against it, compared with only 8 percent in the 55+ group. Seasonal migration is also more common in cities than in rural areas, where about one in ten residents reported working abroad, compared with one in fourteen in the countryside.

Higher pay is still the main driver, with 37 percent of respondents citing it as their reason for considering work abroad. This factor is particularly strong among older workers, with half of those aged 55+ indicating salary as the key incentive. By contrast, younger people are more likely to cite specific financial goals, such as repaying a loan or buying a car. Other reasons include limited career prospects or low local wages, mentioned by a quarter of respondents, and especially prevalent among those with lower levels of education.

Krzysztof Inglot, labour market expert and founder of Personnel Service, noted that younger workers today can often achieve similar earnings in Poland, thanks to exemptions from personal income tax for those under 26 and a minimum gross hourly wage of PLN 30.5. “Older workers are guided more by simple calculations—the higher pay abroad still matters. Younger people usually take irregular trips tied to specific goals, and with better opportunities at home, more of them are choosing to stay,” Inglot said.

Poland: Education sector recovers, families still burdened by costs

At the beginning of the 2025/2026 school year, the education sector in Poland entered with a reduced level of outstanding debt, though households continue to face rising financial pressure linked to children’s learning expenses. According to BIG InfoMonitor, total arrears in the sector fell by nearly PLN 5 million year-on-year, to just under PLN 283 million at the end of June. Yet, despite this improved balance sheet, parents report ongoing difficulties covering the costs of out-of-school educational activities.

Data from the Register of Debtors BIG InfoMonitor and the BIK database show that around 2 percent of companies in the school and education sector fail to settle their financial obligations on time, a significantly lower share than the 5 percent recorded across the wider economy. Still, arrears remain substantial, particularly in non-formal education services such as language schools, tutoring, or extracurricular activities. For this segment, debts rose by PLN 4.5 million over the year, reaching PLN 194.2 million.

Household spending patterns reveal that educational costs are a persistent burden. Only 7 percent of Poles report saving money specifically to support their children’s education, compared with 17 percent who save for leisure and 15 percent who prioritize healthcare. According to BIG InfoMonitor’s chief analyst, Waldemar Rogowski, the limited willingness to save for children’s future stems from low levels of financial literacy, a comparatively low savings rate of 9.8 percent in Poland—among the lowest in the EU—and shifting social norms that place more emphasis on children’s independence.

Parents’ financial constraints directly affect demand for extracurricular education. Previous surveys indicate that one in three families reduced school-year spending, most often cutting extracurricular classes, tutoring, or school trips. The trend has eased in recent years, but the strain on household budgets remains visible. Rogowski notes that the pandemic initially boosted demand for tutoring due to dissatisfaction with remote learning, while more recently rising operating costs have weighed on the finances of education providers. What has remained constant, however, is that families continue to be required to increase their outlays on education, regardless of broader economic conditions.

Housing loan inquiries in Poland up 52.5% year-on-year in August 2025

The value of housing loan inquiries in Poland rose sharply in August 2025, increasing by 52.5 percent compared with the same month last year, according to data from the BIK Housing Loan Demand Index. Banks and credit unions submitted requests to BIK for housing loans totaling more than half again the value recorded in August 2024.

A total of 35,300 individuals applied for housing loans during the month, up 33.8 percent from 26,400 applicants a year earlier. However, compared with July 2025, the number of applicants fell by 13.7 percent. The average value of loan applications stood at PLN 467,910, 8.6 percent higher than in August 2024 but 1.2 percent lower than in July.

Despite relatively high interest rates compared with other EU countries, demand for housing loans continues to grow. According to Waldemar Rogowski, chief analyst at the BIK Group, this trend reflects both recent interest rate cuts and expectations of further reductions, as well as a nominal increase in wages of 9 percent year-on-year. These factors have supported household creditworthiness. Rogowski also pointed to favorable conditions in the housing market, particularly the large supply in the primary market, as an additional driver of borrowing activity.

The rise in the average loan amount requested, up 8.6 percent compared with last year, has contributed to the higher BIK index reading. Rogowski noted that further records for average housing loan applications may be seen in the coming months.

The BIK Housing Loan Demand Index measures the year-on-year change in the value of housing loan applications submitted by individuals. It is used by analysts and financial institutions to assess market trends and forecast future demand for housing loans.

Employment in Slovakia declined in second quarter of 2025 after nearly two years of growth

fletcher@cijeurope.com
4 September 2025
Jobs

Employment in Slovakia Declined in Second Quarter of 2025 After Nearly Two Years of Growth

Employment in Slovakia decreased in the second quarter of 2025, marking the first year-on-year decline since the third quarter of 2023. According to the Labour Force Sample Survey, the number of employed people reached 2,000,607, down by 0.4 percent compared with the same period last year, equivalent to 10,800 fewer workers. Seasonally adjusted figures also showed a quarter-on-quarter decline of 0.3 percent, leaving the total at 2.612 million employees. The employment rate fell by 0.1 percentage point to 78 percent.

The overall drop was driven primarily by the construction sector, where employment fell by more than 13,000, a decrease of 5.2 percent year-on-year. Manufacturing also contracted, losing nearly 9,000 jobs, continuing a downward trend for the fourth consecutive quarter. Employment in services decreased by almost 3,000, the first decline in a year, with losses concentrated in information and communication, education, and healthcare. Information and communication alone shed 9,600 jobs, an 8.6 percent fall, while education and healthcare together lost 15,500 positions. These declines were partly offset by gains in transportation and storage, which added 7,600 jobs, and trade, which increased by 3,200 and remains the country’s second-largest employer with 340,000 people.

Industry, the largest employer in the economy with 652,000 workers, saw only a slight increase and continues to account for one in four jobs nationwide. Agriculture added 4,300 workers, while construction remained under pressure with further losses. In total, six out of 18 monitored sectors reported lower employment compared with a year earlier.

Regionally, five of the eight Slovak regions recorded declines in employment. The sharpest drop was in Nitriansky kraj, where the workforce shrank by 10,800, followed by Prešovský kraj, which lost nearly 7,000 jobs. The strongest growth was in Žilinský kraj, which added 5,000 employees, and Trnavský kraj, which gained 3,800. Besides Bratislavský kraj, where the employment rate traditionally exceeds the national average, Žilinský, Trnavský, and Trenčiansky kraje also reported employment rates above 80 percent. Nitriansky kraj recorded the largest year-on-year fall, with the employment rate dropping by 1.8 percentage points to 77.5 percent. Prešovský kraj continued to have the lowest employment rate, remaining below 72 percent for the sixth consecutive quarter.

Short-term labour migration also rose. Almost 122,000 Slovaks worked abroad during the second quarter, an increase of 8.5 percent year-on-year. More than half were employed in construction and industry, and one-quarter came from Prešovský kraj. Nitriansky kraj recorded the steepest growth in cross-border commuting, up nearly 59 percent, while Košický kraj saw a 40 percent decline.

In the first half of 2025, employment totaled 2.6 million people, a 0.1 percent year-on-year decrease. Manufacturing lost 12,000 jobs, while services gained 8,200. Eight of 18 sectors reported lower employment, and three regions experienced year-on-year declines. Despite this, the national employment rate edged up slightly to 78 percent. The number of Slovaks working abroad in the first half of the year rose by nearly 5 percent to more than 120,000.

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