7 Questions with Erik Siegl

Exclusive interview with Erik Siegl, Counselor at the Embassy of the Czech Republic in Germany and Head of the Trade and Economic Section. The interview is conducted by OW writer Jonas Prien.

PRIEN: Germany has been the Czech Republic’s most important economic partner for years. Is the economic stagnation in Germany now forcing Prague to actively seek out alternative trading partners, or does Germany remain a strategic priority?

Siegl: German-Czech trade rose by about 4% in 2025, despite the stagnation in Germany. The importance of the EU single market and neighborly economic relations continues to grow for both of our countries. To better harness this potential, we “only” need the completion of the EU single market, where many non-tariff or regulatory barriers still hinder trade. Greater deregulation, digitalization, and support for innovation are, of course, also necessary.

PRIEN: German-Czech economic relations have long been characterized by close industrial integration, particularly within German supply chains. Will this model still hold up in 2026, or is it reaching its structural limits?

Siegl: The trade policy upheavals of recent years and months clearly underscore once again how important our EU community is, both economically and in terms of external and internal relations. Of course, some Czech companies are also suffering from the crisis in the German automotive sector. On the other hand, new opportunities are emerging in the defense, civil engineering, aerospace, and energy industries.

PRIEN: Political speeches often speak of a close partnership. Which specific flagship projects in the German-Czech economy actually justify this claim?

Siegl: It is difficult for me to single out specific flagship projects. While my perspective from the embassy in Berlin is cross-sectoral, with an annual trade volume of 112 billion euros, I can only see a fraction of the whole. To name just two important projects: Digiteq is a subsidiary of Škoda Auto and Volkswagen that is highly innovative and active in the field of autonomous driving and driver-assistance systems. In the area of autonomous driving, German automakers are also developing a test site for autonomous vehicles in Sokolov or Cheb. Furthermore, the space technology group OHB is investing in the Czech Republic and working closely with Czech partners on projects such as the SOVA research satellite on behalf of the European Space Agency (ESA). This could soon become one of the most significant joint high-tech projects.

PRIEN: The Czech Republic has recently made great strides in the digital economy and e-commerce. Which Czech companies or technologies are internationally competitive today, even beyond the domestic market?

Siegl: It is true that e-commerce is very advanced in the Czech Republic, both in terms of consumer behavior (the share of e-shop purchases) and in terms of mature IT technologies for e-commerce. Numerous Czech IT companies regularly showcase their offerings at specialized trade fairs and supply their services and products to Germany. Incidentally, the IT sector—especially cybersecurity—is a Czech strength. No wonder that global corporations like SAP also have about 4,000 employees in our country. I’d also like to mention knusper.de, a spin-off of the successful Czech company Rohlík.cz. Since the year before last, knusper.de has been delivering groceries and household goods in Berlin. The logistics system, based on precise deliveries within 15-hour windows, is intended for universal use in many other online shops.

PRIEN: Like Germany, the Czech Republic is a classic car country. Is the Czech Republic currently better, worse, or simply more realistically positioned than Germany in the transition to electric mobility?

Siegl: I’m cautious about making a final assessment here, as I’m not an automotive expert. Given the extent of the interdependence, it’s also difficult to say what is “Czech” and what is “German.” After all, we’ve shared a common engineering culture and landscape since at least the 19th century! It’s certainly fair to say that Škoda is also very successful commercially with its BEV models. As a country, the Czech Republic has been advocating for greater technological openness and flexibility in meeting the EU’s emissions targets for years.

PRIEN: In terms of energy policy, the Czech Republic is deliberately focusing on nuclear energy, including Small Modular Reactors (SMRs). What specific plans are in place for the border region with Germany?

Siegl: In addition to the completion of two nuclear power plant units and the possible expansion of a second nuclear power plant, the current government, like the previous one, is also planning the development of so-called small modular reactors (SMRs). For the past two years, the Czech Republic has had a strategy under which the optimal sites for the construction of SMRs are either one in each region or the sites of the current nuclear power plants. To strengthen this plan, ČEZ acquired a stake in the British company Rolls-Royce SMR. However, the exact location of the deep geological repository remains unclear.

PRIEN: Looking ahead to 2026: From the Czech perspective, which economic sectors have the greatest growth potential, and where do you see specific opportunities for German companies?

Siegl: Again, as a technical expert, I don’t feel qualified to assess individual industries and make such judgments. What I do see as a trend, however, is that companies developing new innovations or technologies can often apply them across industries. As is well known, this applies not only to AI or IT in general, but also much more broadly. For example: state-of-the-art imaging methods from physics research are used today in industrial applications (material testing), in space travel, and in medicine. The boundaries of innovation application are becoming blurred in some cases, and experts from various technical and economic fields are coming together more often.