Week 42: Czech Politics Overview

Story of the week:

Raid at Prague's Transport Company

• On Monday, detectives from the National Organized Crime Unit raided Prague’s Public Transport Company (DPP) over allegations of bribery related to the procurement of a comprehensive metro security system, IDNES reported.

• The police have launched criminal proceedings against 13 individuals, including Deputy Chair of the Supervisory Board Jan Marek, board members Marek Kopřiva and Jiří Špička, as well as DPP’s security director Bohdan Frajt, and several businessmen. Among the accused are Jindřich Špringl Sr., Jindřich Špringl Jr., Michal Studnička, Pavel Dovhomilja, Roman Juřík of AŽD Praha, former DPP board member Marek Doležal, and DPP’s head of investment, Martin Kadlec.

• Prague Mayor Bohuslav Svoboda has called for the immediate resignation of all accused DPP officials. A new selection process will be opened for the position of CEO, currently held by Petr Witovský, who was not charged.

• DPP, Prague's largest municipal company, operates with a turnover of CZK 27.27 billion and an annual subsidy of CZK 18 billion.

The Christian Democrats have elected new leadership, aiming to stay the course

• At their electoral congress in Olomouc over the weekend, Agriculture Minister Marek Výborný was chosen as the new party chairman, with MP Pavel Bělobrádek elected as first deputy chairman.

• Výborný, who briefly led the party in 2019, won in the second round against the current chairman, Deputy Prime Minister and Minister of Labor and Social Affairs, Marian Jurečka. Bělobrádek, the party's leader from 2010 to 2019, secured his position after two rounds in which no candidate was elected, including Environment Minister Petr Hladík, who had been endorsed by Výborný.

• The party plans to contest next year’s parliamentary elections in coalition with ODS and TOP09 under the SPOLU alliance. Newly elected vice-chairpersons include Monika Brzesková, Jiří Horák, Václav Pláteník, and Eduard Hulicius.

News in Brief

• The current government is unlikely to finalize the contract for a new digital construction permit system, according to the new Minister for Regional Development, Petr Kulhánek (STAN), who replaced the dismissed Deputy Prime Minister Ivan Bartoš (Pirates), as reported by the Czech News Agency.

• In its final year, the government aims to open the D4 highway from Prague to Karlovy Vary (Q4/24), complete the tender for the expansion of the Dukovany nuclear power plant (Q1/25), finalize pension reform, and pass a lustration law that could hinder the return of former Prime Minister Andrej Babiš, reports iDnes.cz.

• ANO MP Marek Novák, on a private trip to China at the invitation of the Chinese Chamber of Commerce, met with Huawei executives to discuss the upcoming cybersecurity law. "He's an idiot," said ANO leader Andrej Babiš, according to iDNES.

• According to ANO Vice Chairman Karel Havlíček, ČEZ may refuse to sign a supply contract with Korea's KHNP for two reactors at the Dukovany nuclear plant, citing lack of capital to finance both simultaneously. The previous government had prepared financing for one reactor at 200 billion CZK.

• Public health insurance is expected to run a deficit of 11 billion CZK this year, with a total budget of 502.6 billion CZK. The Ministry of Health plans to cover the gap with 2025 revenues, projected at 529.7 billion CZK.

• At its Wednesday meeting, the government approved a 6.95% pay raise for politicians, judges, and prosecutors starting next year, allocated 3 billion CZK for flood recovery efforts, and approved a concordat with the Vatican.

• Daniel Koštoval, former Deputy Defense Minister, will be the new Czech ambassador to Moscow.

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