The economic conflict between the great powers will also affect the new government

The new Czech government will have to deal with a number of economic landmines inherited from the previous government. This was pointed out in an interview for Právo by ANO Vice-Chair and probably future Minister of Finance Alena Schillerová. The budget lacks tens of billions of crowns to finance important projects.

At the same time, a look behind the scenes shows that it will also have to deal with growing economic instability in Europe and the world.

France, Europe's second-largest economy, is struggling with low GDP growth, political chaos caused by the inability to form a functioning government, and high national debt and budget deficits.

From the point of view of the financial markets, France's political system is currently dysfunctional. According to former International Monetary Fund Deputy Managing Director Desmond Lachman

the crisis that broke out in France "may also affect the rest of the eurozone, and even shake world markets."

There is no force in the country that would be able to consolidate the state budget and push through fundamental reforms. Without them, France's national debt is expected to rise to 150 percent of GDP over the next ten years.

The economic condition of Germany must also cause concern in our country. This year, according to Die Welt, industrial production there has fallen catastrophically, its indicators have reached the lowest values since the beginning of the conflict in Ukraine.

The German economy will show growth of only two-tenths of a percent in 2025. Production in the automotive industry decreased by 18.5 percent. Instead of a "autumn of reforms", therefore, according to economists, Germany is facing a "winter of discontent".

And the third blow is another economic clash between the United States and China. In response to some restrictions against Chinese companies in the US, Beijing tightened export controls on rare earth metals and related technologies on October 9, which may significantly complicate the production of weapons and semiconductors for the Americans. The American response is to impose additional 100 percent tariffs on all imported goods from China from November 1. It marks the end of a temporary trade truce between the two powers with the threat of a new trade war.

Vice President J.D. Vance indicated that Washington does not rule out "reasonable negotiations", but according to Reuters, Beijing rejected a call from Washington about tariffs. And it is not clear whether the announced meeting between Trump and Chinese President Xi Jinping will take place at the end of October in South Korea.

Europe is still at risk of becoming a victim of an economic conflict between the great powers, which may also affect the defence industry, in the development of which considerable economic hopes are also placed in our country.

The new Czech government will again have to maneuver in turbulent international economic waters. The later it is established, the more difficult it will be for it. 

Miloš Balabán, Právo Daily