18/3/2025 |Articles are machine translated
Security has been the number one issue in the European Union in recent weeks. There is talk about the percentage that each country should give to strengthen its defence, and there is consideration of loosening budget rules so that countries can take on more debt. None of them is in such a state that they can just spend tens of billions on fighter jets or tanks without blinking an eye. But in these difficult times, when the need for military reinforcement is being stressed, it must be said in the same breath that, in order to survive in this increasingly complex world, we must also be competitive in other ways than militarily. Only a strong economy can ensure a strong defence.
It is a bit of a budget line for the EU, and although it is not yet being discussed, the European Commission will have to consider – and perhaps reconsider – how much money will go to the green agenda, especially decarbonisation, and how much to armaments. And how much more it will borrow to do so.
If we were to divert money earmarked in the EU for decarbonisation and promoting innovation to the defence budget chapter, competitiveness would be hard to achieve. Moreover, the idea that the European Commission will completely write off what we call the Green Deal is science fiction. And in principle, few people are calling for such a radical step anymore. But perhaps the new situation could lead to some “backward steps” that would be welcomed by the companies that are the backbone of the economies. And give them room to breathe a little more freely.
In this issue of Czech Car Industry, one term is repeated in almost every text: the ESG. Apart from Česká spořitelna’s Corporate Clients Director Patrik Pražák, no one is really defending ESG. And even he says that “there will be some reflection”, although he believes it will not come quickly. Nevertheless, it seems that something will be done in this respect.
ESG will soon be a topic for all companies. But the automotive sector is bound by much more than ESG regulations. European car companies must meet stricter emission limits for production cars this year, and face heavy fines if they fail to comply. An Automotive Action Plan is on the table these days as a result of a dialogue between car companies and the European Commission to chart a more viable path for the automotive sector. However, it seems that the relief it will bring to the manufacturers will be only slight.
It would be fitting to bring mainly positive news in the first issue of the year, to add optimism. However, it is March and most of the positive texts in this issue of Czech Car Industry are related to last year. A large survey we organised among managers of companies in the automotive industry shows that this year will be worse. At least in Europe.
Read on to find out how this will affect tyre production and what the Brano Group’s prescription is. Although much has already been written about the US President, do not overlook the text headlined Donald Trump: the end of globalisation. There is also an interesting piece on the UK car industry or an interview with the new Chancellor of Skoda Auto College.
The whole issue is definitely worth reading.
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