Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček, the number two in the ANO movement, took office at an exceptionally turbulent time – the ongoing war in Ukraine, conflict in Iran, tensions between Europe and the United States. In this unpredictable environment, he must find ways to support Czech companies – and, by extension, Czech citizens.
A major issue in Czechia is that wages lag behind overall economic performance. While we are already close to the EU average in output, wages remain dozens of percent below the EU average. Do you have a recipe for changing this?
It is true that the Czech economy has rapidly approached the European average in terms of performance, but we still lag behind in wages. However, this is not simply a matter of political decisions or administrative measures. Wages are closely tied in the long term to labor productivity, the structure of the economy, and the added value of production. If we want to genuinely bring wages closer to Western European levels, we need to focus on three areas. First, shifting the economy toward higher added value – meaning more development, technology, and innovation. Second, supporting investment in modern technologies and automation. And third, investing in quality education and retraining, enabling companies to transition to more advanced production. The Czech economy is very open and strongly industrial. That is our strength, but it also means that part of our production still operates with lower margins. If we systematically strengthen innovation, research, and technological sophistication, wages will rise naturally and sustainably over the long term.
In Czechia and across Europe, Poland is often cited as a success story. Yet when we look at many indicators, that comparison with Czechia is not so clear-cut. Where can we genuinely take inspiration from Poland, and where does Czechia still have the advantage?
In recent years, Poland has often been cited as a highly dynamic economy, and in some respects this is justified. It has made very effective use of European funds, invested heavily in infrastructure, and consistently supported domestic industry and large-scale investments. That is certainly something we can learn from. At the same time, it must be said that the Czech Republic retains a number of strong advantages. We have one of the most industrialized economies in Europe, high export performance, and a very strong position in the automotive, engineering, and electrical industries. Labor productivity remains higher here than in Poland, and Czech companies are deeply integrated into European production chains. In other words, Poland is currently very dynamic and takes some steps quite decisively. However, Czechia still has a very solid industrial foundation. The key now is to maintain competitiveness and invest more in economic modernization.
I was recently in Austria, where local economists told me that Austria is waiting for Germany to pick up. Are we in a similar situation?
The Czech economy is very closely interconnected with Germany. Germany is by far our largest trading partner, and a large share of Czech industry is part of German production chains. When the German economy slows, it inevitably affects us with a certain delay. In recent months, we have seen some signs of stabilization, but I would remain cautious in my assessment. Germany is currently facing significant structural challenges – energy, the transformation of the automotive industry, and competition from Asia. Large investment programs may help the German economy, but their impact will unfold gradually. For Czechia, it is therefore important not only to monitor developments in Germany, but also to diversify exports and strengthen our presence in other markets.
With the Minister of Economy of the Slovak Republic, Denisa Saková.
One of the major ways to support Czech industry, businesses, and citizens is the digitalization of the state. In some areas, we are already ahead of many comparable countries. Does it therefore still make sense to maintain the Digital and Information Agency?
Digitalization of the state is one of the key conditions for a modern economy. For companies and citizens, it primarily means simpler administration, less bureaucracy, and faster communication with the state. The Czech Republic has made progress in certain areas, for example in data boxes and some digital services. At the same time, however, there is still significant room for improvement. Institutions such as the Digital and Information Agency can make sense if they genuinely help coordinate digitalization across public administration and simplify processes. The key, however, is that digitalization should not be about creating new offices, but about making the state function more simply and efficiently for citizens and businesses.
The European Commission is currently concluding one free trade agreement after another, most recently with India and Australia. Is this something that Czechia, as an open export economy, clearly welcomes? And how should we respond to resistance from European and Czech farmers?
The Czech Republic is one of the most open economies in Europe, and exports are one of the main drivers of our economy. That is why we generally support the conclusion of free trade agreements that open new markets for Czech companies. At the same time, we cannot ignore the concerns of European farmers. If the European Union enters into trade agreements, it must also ensure fair competitive conditions. This means that imported products should meet standards comparable to those in the EU. Ultimately, it is about finding a balance – openness to global trade is essential for the European economy, but we must also protect fair conditions for European producers.
You recently held joint talks with the Slovak government. What was their main benefit? And what would you consider the most important joint Czech-Slovak project in the coming years?
The Czech Republic and Slovakia maintain exceptionally close economic and political relations. We are closely connected not only historically and culturally, but also in terms of industrial structure and economic ties. Joint government meetings are therefore very important, as they enable coordination on specific projects. I see strong potential, for example, in energy, transport infrastructure, and cooperation in research and innovation. Going forward, it will also be crucial to improve transport corridors, modernize railway connections, and collaborate on new technologies. These are precisely the kinds of projects that can significantly strengthen the competitiveness of both economies.
The author is a European editor of Deník
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Karel Havlíček (born August 16, 1969, in České Budějovice) is Deputy Prime Minister, Minister of Industry and Trade, and First Vice-Chair of the ANO movement.
He studied civil engineering at the Czech Technical University in Prague, earning an engineering degree, and later obtained an MBA from the PIBS at Manchester Metropolitan University in 1998. He completed his doctoral studies in economics and management at the University of Economics in Prague in 2004 and was appointed associate professor in 2014.
He served as Chairman of the Board of the Association of Small and Medium-Sized Enterprises and Crafts of the Czech Republic. He was also a member of the Government Council for Research, Development and Innovation.
In 2019, he was appointed Minister of Industry and Trade. A year later, he also took on the role of Minister of Transport.
He joined the ANO movement in 2021. In February 2023, he was elected First Vice-Chair. In the same month, he was also elected Deputy Speaker of the Chamber of Deputies.
Following the 2025 elections, he again became Minister of Industry and Trade and Deputy Prime Minister.
He is married and has two children. He speaks English, German, Russian, and partially Spanish, French, and Chinese.
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