First Deputy Prime Minister and Minister of Industry and Economy, Mr. Karel Havlíček in Interview with the Czech Liberland Representative Hans Weber (Prague Forum)

Liberland Press
Prague/ Czech Republic

First Deputy Prime Minister and Minister of Industry and Economy, Mr. Karel Havlíček in Interview with the Czech Liberland Representative Hans Weber (Prague Forum)

PRAGUE FORUM recently had the opportunity to conduct an interview with the First Deputy Prime Minister and Minister of Industry and Economy, Mr. Karel Havlíček, about the current situation and the government’s further plans.

Mr. Havlíček, as an experienced Deputy Prime Minister and Head of the Ministry of Industry and Trade in the new government led by Prime Minister Andrej Babiš – how does the policy of your coalition fundamentally differ from the policy of the previous government and what specific improvements and reforms are you implementing internally within the Ministry of Industry and Trade to make the Czech economy even more competitive?

The fundamental difference is that economic policy has once again become a real priority for the government. Our starting point is simply and openly formulated in the Economic Strategy Czech Republic: A Country for the Future 2.0. The Czech Republic is a small open economy whose prosperity is based on productivity, exports and investments. If these pillars weaken, the standard of living will also weaken. Therefore, internally at the Ministry of Industry and Trade, we are changing our management style. The Economic Strategy 2.0 is not a declaration, but a working tool. Each priority has its guarantor, timetable and measurable targets. We will strengthen project management, interdepartmental coordination and decision-making capacity. The aim is for the ministry to function as an active coordinator of economic policy, not just as an administrator of regulations.

How is the ANO-led government strategically building on past strengths – such as digitalisation, export support and infrastructure – and where do you see the greatest opportunities for the Czech Republic in the coming years?

The economic strategy is based on a realistic assessment of the strengths of the Czech economy. We have an industrial tradition, a strong export orientation and a relatively good technological background. However, the problem is not the absence of leaders, but their insufficient spread across the economy. We therefore see the greatest opportunity in the so-called diffusion – that is, in ensuring that digitalisation, automation and new technologies do not remain with just a few leaders, but increase the productivity of tens of thousands of small and medium-sized companies. We also want to boost exports with higher added value and connect infrastructure – transport, energy and digital – with the long-term investment needs of industry.

Some critics fear that rejecting burdensome EU regulations such as ETS2 will lead to tensions with Brussels. How does the government approach protecting Czech interests while also engaging in constructive cooperation in the EU?

Our position is in line with Strategy 2.0: we support climate goals, but we reject instruments that undermine competitiveness and social stability. ETS2 in its current form poses a significant risk to households and industry in countries with higher energy intensity. This does not mean conflict with the European Union. It means an active and open discussion on adjustments, exemptions and compensations. The Czech Republic wants to be a constructive partner, but at the same time it must defend its legitimate economic interests. This is the standard approach of every self-confident member state.

The Czech Republic is facing high electricity prices. What measures does the government plan for 2026?

Energy is one of the key topics of the Economic Strategy 2.0. Without accessible and predictable energy, it is impossible to maintain the industrial base or attract new investments. That is why we are preparing steps that will reduce the regulated component of the electricity price, including the state taking over part of the costs, while at the same time working on a more stable market setting. It is important to emphasize that these are not one-off interventions, but long-term settings that will allow companies to plan investments over a period of ten or more years.

How will the new government follow up on initiatives in the field of the circular economy?

The circular economy is perceived as part of competitiveness, not as a regulatory burden. Strategy 2.0 emphasizes the efficient use of resources, security of supply and the emergence of new business models. We support the removal of barriers to the use of secondary raw materials, the inclusion of circular solutions in public procurement and the linking of circular projects with innovation and research. The key is that circular solutions are economically viable – then they will become a natural part of the market.

Water scarcity threatens agriculture and regional development. What are the government’s priorities?

From the perspective of economic strategy, water is a strategic input for key sectors. The government therefore supports investments in water storage, retention measures and efficient irrigation. We are focusing on accelerating project implementation and removing administrative obstacles. Adaptation to climate change must be based on practical solutions with measurable impact, not just formal programs.

How is the government accelerating the absorption of EU funds for adaptation and water management?

The fundamental change lies in the approach. We do not evaluate success by the volume of funds spent, but by the real benefit to the territory and the economy. We are strengthening project management, simplifying methodologies and clearly setting national priorities for which European funds are to be used.

How does the government support the European AI gigafactory initiative?

Artificial intelligence is defined in the Economic Strategy 2.0 as a key cross-cutting technology for productivity growth. Therefore, supporting AI infrastructure is not an end in itself – it aims to accelerate innovation in industry, services and public administration. We assess the project in terms of economic benefits, impact on jobs and long-term returns. If these parameters are met, the Czech Republic can become a major European center in the field of AI.

How do you want to expand Czech-German cooperation in vocational education?

Strategy 2.0 places great emphasis on human capital. Czech-German cooperation has potential, especially in the area of ​​recognition of qualifications, long-term partnerships between schools and companies and the development of dual education. The aim is to move from project financing to permanent institutional structures.

What role do investments in infrastructure play, including in regions such as the Moravian-Silesian Region?

Infrastructure is one of the key pillars of the strategy. Without quality transport, energy networks and digital connectivity, structural changes cannot be implemented. In regions such as the Moravian-Silesian Region, infrastructure is essential for the transition to modern industrial and technological activities and for creating new jobs.

How does the government assess the current economic dynamics and what further steps does it plan?

Current growth is positive, but it is not enough on its own. Strategy 2.0 is focused on long-term productivity growth. This means further reduction of the administrative burden, support for investment, better access to capital and a stable regulatory environment. The goal is not a short-term effect, but sustainable prosperity.

Your dog appears on social networks. What role does it play in your working life?

It is primarily a reminder of balance. Even in demanding work, it is important not to lose touch with everyday life. Betyna is welcomed with a smile at the ministry. Sometimes she can even lighten the load on formal meetings.

And finally, what do you think is the biggest difference that the new government has already achieved?

The biggest change is the return to management based on data, priorities and results. The Economic Strategy 2.0 provides a clear framework and the government has the experience and capacity to implement it. I am convinced that this approach will enable the Czech Republic to successfully navigate the coming years.

Thank you for the conversation, Mr. Havlíček