Article by Hans Weber

7, October

Two neighboring markets in transition, two expert teams from Czech embassies and a full Mirror Salon: on 7 October 2026, the Czech Ministry of Foreign Affairs invited businesspeople to Černín Palace in Prague for the seminar “Business Opportunities for Czech Companies in the Hungarian and Serbian Markets”. PragueForum was there.

Economic Diplomacy in the Mirror Salon

Even the way to the seminar is impressive: through the baroque entrance hall of Černín Palace, past monumental sculptures, into the Mirror Salon, an elegant room adorned with precious tapestries. Here, numerous entrepreneurs, association representatives, and consultants gathered in the morning to learn firsthand where new doors are opening for Czech companies in Hungary and Serbia.

Martin Bašta, Deputy Director of the Ministry’s Economic and Science Diplomacy Department, and Radek Jakubský, Vice-President of the Czech Chamber of Commerce, opened the seminar. Both made clear that economic diplomacy today is above all one thing: a service for exporters.

Hungary: A Trusted Partner With New Momentum

Pavla Kačenová, Head of the Commercial and Economic Section of the Czech Embassy in Budapest, presented the situation in Hungary. Hungary is a medium-sized EU country closely intertwined with the German economy, and it has stagnated in recent years. Its export economy depends heavily on the automotive industry, which is linked to a broad supply chain that includes battery production.

The political change promises fresh momentum: following the elections in April 2026, a new government took office, and EU funds previously blocked for Hungary are now being released – with considerable investment potential across many sectors. Forecasts see economic growth rising from 0.5 percent in 2025 to 1.7 percent this year and 1.8 percent next year, while inflation is falling markedly.

For the Czech Republic, Hungary is already a heavyweight. For years, the two countries have ranked among each other’s ten most important trading partners, and the balance is clearly in Czechia’s favor: in 2025, trade totaled around CZK 315 billion, of which CZK 191 billion were Czech exports. Machinery and vehicles dominate in both directions. Numerous Czech companies are successful in Hungary, from Alza and Rohlík (Kifli.hu) to PPF with Yettel, Agrofert, Emma Capital and CPI, as well as Ravak, Alukov, HOPI, Mattoni, ČEZ and mmcité. Conversely, Hungarian companies such as MOL, Gedeon Richter, Auto Wallis and Aero Vodochody have invested in the Czech Republic.

The embassy sees opportunities above all in the automotive sector; in transport infrastructure, thanks to the unblocked EU funds and a new railway development plan; in energy, with battery storage, grid modernization, wind and geothermal power; in IT and cybersecurity; and in research and education, where Hungary is expected to regain full access to Horizon Europe and Erasmus+.

Serbia: A Growth Market With Challenges

Pavel Daněk, Head of the Commercial and Economic Section of the Czech Embassy in Belgrade, reported on Serbia. Serbia is the largest and strongest economy in the Western Balkans and has been an EU candidate country since 2012. Despite rising public spending, it remains macroeconomically stable, with public debt below 45 percent of GDP and steady growth of around 3 percent.

The Czech Republic enjoys an excellent reputation in Serbia: Czech investors play a leading role in several strategic sectors, including telecommunications, industrial parks and real estate development. Bilateral trade amounts to around EUR 2.5 billion, and the Czech Republic is Serbia’s sixth-largest export market.

Daněk did not gloss over the challenges: upcoming parliamentary and presidential elections, EXPO 2027 in Belgrade as an organizational tour de force, and a difficult geopolitical situation – from the risk of US sanctions against NIS, Serbia’s largest oil company, to the country’s refusal to join sanctions against Russia.

The opportunities are nonetheless considerable: modernizing rail links to Bosnia and Herzegovina and Montenegro and supplying freight locomotives; renewing public transport fleets in Belgrade and other large cities; water and environmental technology, where waste separation is still largely missing; the defense and aviation industry; design, architecture and construction; and agriculture – from animal feed and hatching eggs to beer, malt and breeding livestock.

A Toolbox for Exporters

The Ministry took the opportunity to present its support services: the Map of Global Sector Opportunities, country information on BusinessInfo.cz, the magazine “Modern Economic Diplomacy”, the PROPED and PROPEA programmes for trade presentations and a lasting presence abroad, comprehensive “Czech solutions” for projects such as hospitals or railways, and the annual Conference of Economic Diplomats. Companies seeking concrete help – finding partners, entering a market or dealing with authorities – can turn to the service catalog of the Unified Foreign Network and the Client Center for Export.

The second part of the morning showed how practical this is meant to be: until 1 pm, diplomats from Budapest and Belgrade were available for individual consultations.

Conclusion

The seminar showed how much potential lies right on the doorstep. After its change of government, Hungary is making a fresh start in its relations with the EU; Serbia continues to grow despite all uncertainties; and in both countries, Czech companies enjoy an excellent reputation. PragueForum thanks the Ministry of Foreign Affairs and the speakers for an informative and practical morning.