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That said, do not forget the impact on firms and the second-round effects on the economy. Yes, it’s the feedback loops again!

You guessed it – yet another negative supply shock for the EU economy, when less is produced for higher prices. For all these reasons, still burdened with a fair portion of uncertainty, we see the 2027 Czech economic expansion not reaching its full potential, but softening to 2.6% or more, depending on the winners and losers in the ETS2 game.

At the same time, the EC has recently published its legislative initiatives plan for 2026. And while it offers some positive potential, it might be said that it lacks the courage to take fundamental steps to reduce Europe’s regulatory burden and improve its competitiveness. There is simply not much on securing stable, affordable energy for both firms and households; it seems pretty heavy on legislative proposals without much added value, while tackling barriers in the internal market no longer seems to be at policymakers’ hearts. Has the Commission grown out of touch with reality – and is that a lesson already learned from the Draghi report?