Czech news in brief for December 18: Monday's top headlines

Prague residents face a 13-percent rise in water and sewage fees, and will pay CZK 145 per cubic meter in 2024 (from the current CZK 128.18), the Prague Waterworks (PVS) company confirmed today. The approved strategy until 2028 outlines a consistent annual increase of 2 percent above inflation. 

This hike translates to an extra CZK 56 monthly per person, totaling CZK 671 annually. Despite this, rates in Prague remain below the “social affordability threshold” – a guideline that monitors water prices relative to average income. In the next year, PVS will collect approximately CZK 3.5 billion in rent, which is approximately CZK 584 million more year on year.

Most Czech regions plan budgets exceeding income, aiming to cover deficits using past savings. Prague and Moravian-Silesian regions anticipate the largest shortfalls, while Pardubice is the only region that expects a surplus. Regional councils recently approved these budgets; Prague foresees substantial spending exceeding CZK 21 billion. 

Typically facing deficits, regions usually rely on past reserves to bridge gaps. Recent data show a surplus of CZK 21.5 billion for three-quarters of this year, with only three deficits in the last decade, notably in the pandemic year 2020. Investments prioritize roads, regional hospitals, education, and innovation centers such as Ostrava's Moravian-Silesian initiative and Prague's metro line D construction.

A recent Voice of Ukrainians survey reveals that 72 percent of Ukrainian refugees in Czechia now hold jobs, up from 67 percent in June. However, a significant portion still work in lower-skilled roles compared to their previous employment. Over half endure poor working conditions, with 57 percent living below the poverty line. 

Those speaking Czech and aiming to settle in Czechia are more likely to secure employment. Despite a 21-percent increase in Ukrainian refugees employed since last December, many work weekends or late hours, earn less than locals, and 30 percent juggle multiple jobs for sustenance, while 17 percent lack holiday entitlement.

U.S. rock band The Smashing Pumpkins has just announced a Prague stop on its upcoming The World Is a Vampire tour. The rock-pop band will play at the O2 arena on July 4, 2024. Priced from CZK 1,990, tickets go on sale from Dec. 20, 2023, on the ticket-sales websites Ticketmaster and Ticketportal. 

Members of events company Live Nation Czechia can buy pre-sale tickets one day earlier. Five years have passed since the group last played in Czechia. The Smashing Pumpkins have sold over 30 million albums worldwide and are well-known for their international hits such as 1979 and Mayonaise.

Czech First Lady Eva Pavlová has launched an endowment fund geared towards supporting children, single parents, and senior citizens. Its website went live today. The fund concentrates on fostering youth education, aiding single parents, and enhancing the quality of life for the elderly. It also aims to bolster innovative youth projects with positive societal impacts. 

The fund operates independently, not actively seeking sponsors, relying on contributions, planned art auctions, and an e-commerce platform. Pavlová’s website additionally features information about regional non-governmental organizations. Earlier this year, Pavlová also pledged to to focus more on – and help – single mothers in Czechia and tackling gender inequality

Car manufacturer Hyundai has announced its plans for a substantial investment in its Czech Republic plant in Nošovice to boost electric car production. The South Korean automaker aims to spend hundreds of millions – even reaching the billions – of crowns on changes, intending to increase the plant's electric vehicle output from the current 30 percent to potentially exclusive production. 

The factory currently manufactures the Tucson, i30, and Kona Electric models. Hyundai intends to adjust the production line by 2025 or later, ensuring a smooth transition without disrupting regular shutdowns. The move aligns with the EU's 2035 ban on new internal combustion engine car sales, signaling a strategic shift in Hyundai's production focus.

Transparency International has criticized the Czech Republic for lacking a long-term strategy to combat corruption and address its consequences. The anti-corruption organization noted a lack of meaningful initiatives in 2023 and criticized the government for failing to draw consequences from cases involving top representatives.

Transparency International raised concerns about conflicts of interest in public procurement and highlighted the need for improved regulation of lobbying. The organization also urged the government to engage in dialogue with non-governmental experts and emphasized the importance of addressing corruption for the overall success of crisis management.

The Czech Republic has dropped from 13th to 15th in the European Union in a ranking of education and research quality within the Prosperity and Financial Health Index. While the Nordic countries, along with the Netherlands, lead the rankings, the Czech Republic remains around the EU average in most categories.

Notably, the country ranks 23rd in the share of young people with tertiary education, and its higher education system is criticized for lacking flexibility. Experts suggest that addressing the low representation of university-educated individuals in the population and enhancing innovation potential are crucial for improvement.

In the lead-up to Christmas, the Czech Republic anticipates a slight cooling with cloudy skies and rain, according to the Czech Hydrometeorological Institute. Snow showers are also expected, particularly in the east and northeast. Despite the cooler weather, temperatures will remain above freezing during the holidays.

On Monday, freezing fog may pose a risk in certain areas. The rest of the week will see rain and potential snow in higher elevations, persisting into the weekend. Strong winds are forecasted from Thursday, reaching speeds of up to 70 km/h. Overall, the week will bring varied weather conditions across the region.

Prague police are set to submit a proposal for charges against a couple who defrauded around 400 customers in a Christmas cookie scam, collecting approximately CZK 170,000 crowns in the process. The couple advertised their confectionery on the internet during the 2020 pandemic peak, promising homemade Christmas cookies.

After customers placed orders and paid deposits ranging from a hundred crowns to several thousand, the scammers vanished, failing to deliver any goods. The police, after a three-year investigation, are treating the case as an organized group scam, and the couple could face two to eight years in prison. Authorities caution against pre-Christmas fraud, urging individuals to thoroughly vet online sellers before making advance payments.

The outcome of the Czech National Bank's interest final rate-setting meeting of the year is difficult to predict, according to analysts. While the economic situation might warrant a reduction in the current seven percent basic interest rate, the Bank may be concerned about the unknown impact of the January adjustment of price lists on inflation.

Most experts anticipate a 0.25 percentage point rate cut, but ambiguity in statements by bank board members adds uncertainty. Some analysts suggest the Czech National Bank may wait until the February meeting for a clearer picture of inflation, while others believe the time for a gradual rate reduction is long overdue.

Ostrava's city councilors have enacted a ban preventing door-to-door energy salespeople and service intermediaries from offering their products directly to residents in an effort to curb harassment and protect against unfair practices. The move aims to shield residents from potential scams and disadvantageous contracts.

While existing market regulations in Ostrava already restricted door-to-door sales, the prohibition now extends to intermediary activities in the energy sector. Offenders could face fines of up to CZK 100,000. The city urges residents encountering such sales to report them to the city police or the relevant city district office.