Czechia has weathered the conflict surrounding Iran without major disruption, the domestic economy continues to grow, and both the defence and automotive industries are performing well. “Yes, the Czech economy is growing, but there is no room for complacency,” warns Karel Havlíček, First Deputy Prime Minister, Minister of Industry and Trade, and First Vice-Chair of the ANO movement.
Czechia has managed to get through the conflict surrounding Iran without any major crises. What was the key to preventing fuel and energy supply or price problems from getting out of control?
The key was not to panic while at the same time not underestimating the situation. When it comes to oil and fuels, reserves, logistics, and rapid coordination between the government and the key market players are crucial. Czechia had sufficient emergency reserves, the situation at refineries, distributors, and international markets was continuously monitored, and there was no need for extraordinary intervention. Prices naturally reflected global uncertainty, but there were no supply disruptions. It is precisely in situations like these that it becomes clear that energy security is not a slogan – it is a matter of everyday work.
How is the Czech economy performing halfway through the year? What is the key to maintaining growth that is more than twice as strong as neighbouring Slovakia’s?
The Czech economy is growing, but there is no reason for complacency. Our strong industrial base, export performance, automotive sector, and relatively resilient labour market are all helping us. Compared with Slovakia, we benefit from a more diversified industrial structure and from the ability of Czech companies to respond very quickly to changes in foreign demand. However, growth of around two percent is hardly an economic miracle. If we want to grow faster, we must reduce energy costs, accelerate construction permit procedures, support exports, and stop burdening businesses with unnecessary regulation.
Czech defence manufacturers are also achieving excellent results. Would you say they are experiencing their best years since 1990? Does Czechia have the potential to build once again on the period when it was one of the world’s leading arms producers? Are drones now driving the Czech defence industry?
Yes, the Czech defence industry is now in its strongest position in many years. We have a long tradition, a highly skilled workforce, outstanding engineering capabilities, and companies that have successfully established themselves in ammunition, ground vehicles, small arms, radar systems, electronics, and aviation. Drones have enormous potential, and the war in Ukraine has demonstrated just how fundamentally they are changing the modern battlefield. However, I would not simplify the picture by saying that drones alone are driving the sector. The strength of the Czech defence industry lies in its broad range of capabilities – from ammunition and military vehicles to sophisticated technologies. We can certainly build on our tradition, but only if we continue supporting research, manufacturing, and exports, rather than merely talking about them.
While many parts of Europe are talking about a crisis in the automotive industry, Czech car manufacturers are generally performing very well. What is the key to their success?
The key is quality, productivity, and pragmatism. The Czech automotive industry is not dependent on a single technology or a single market. We have strong manufacturers, a robust supplier network, and people capable of producing high-quality vehicles on a large scale. It is also important that Czech carmakers combine conventionally powered vehicles, hybrids, and electric vehicles according to customer demand and economic viability. That is exactly the path Europe should follow – not ideological bans, but technological neutrality and competitiveness.
Your ministry has prepared a substantial package of interest-free loans for small family businesses with up to 250 employees. What is the objective of this support? How important are these businesses to the Czech economy compared with countries such as Austria and Germany? Should Czechia seek to strengthen their role even further?
The objective is simple: to help companies that form the backbone of the Czech economy but often do not have the same access to capital as large corporations. Family businesses sustain employment across the regions, invest with a long-term perspective, and typically reinvest their profits in their businesses. Their role is exceptionally strong in Germany and Austria, and Czechia should take inspiration from them. This is not simply about the romantic notion of family business – it is about economic stability, generational continuity, and Czech ownership. If we want a more resilient economy, we should certainly encourage this segment of business to grow.
One of Czechia’s priorities within European policy is to soften, or ideally abolish, the ETS1 and ETS2 emissions trading systems. How successful have the negotiations been so far, and is it already possible to say that both energy-intensive industries and households can breathe a sigh of relief?
We are seeing some progress in Europe, but the matter is far from settled. The problem with ETS1 is that it has been steadily increasing energy prices and undermining the competitiveness of European industry. ETS2 poses an even greater risk because it could directly affect households, transport, and heating costs. Discussions about safeguards or price caps are a step in the right direction, but they are not enough. Czech industry and households cannot breathe a sigh of relief just yet. We must continue pushing for a fundamental revision, postponement, or ideally the abolition of ETS2, because climate protection cannot come at the cost of destroying industry and making everyday life more expensive for ordinary people.
The author is a European editor of Deník
CV BOX
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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