Czech news in brief for December 27: Wednesday's top headlines

A police spokesperson has told Czech news server Deník N that authorities found a confession letter at the former home of the man behind last Thursday’s Prague mass shooting, in which he admitted to the Klánovice forest double homicide on Dec. 15. 

The police cannot publish the exact contents of the letter because they are still investigating the case. The victims of the shooting in the forest were a 32-year-old man and his two-month-old daughter. Police earlier had confirmed they located a weapon that matched the type used by the perpetrator of the Klánovice forest murders.

The modernization of Prague’s Smíchov railway station will commence at the start of next year at a cost of around CZK 4.14 billion, according to a statement by the Czech Railway Administration today. The reconstruction will renovate tracks, platforms, and underpasses, also making them wheelchair-accessible. 

A consortium including the Metrostav TBR, OHLA ŽS, Hochtief CZ, and Elektrizace železnik Praha companies won the contract for the works. Concurrently, Smíchov plans to construct a transportation hub integrating various public transport modes, alongside park-and-ride area at a cost of around CZK 8 billion. Construction is expected to be finished by 2030.

Employers' unions anticipate a modest economic rebound next year with rising real wages due to decreased inflation. Ongoing challenges for entrepreneurship include regulatory hurdles, labor scarcity, and high energy costs, according to the Czech Union of Industry and Transport (SPD).

The SPD predicts a gradual economic recovery, citing stabilized prices, increased consumption, and more orders from foreign companies in 2024. However, obstacles like labor shortages and global energy price competition persist. The Czech Chamber of Commerce predicts that the Czech economy will increase its performance by two percent next year. It also anticipates a slight increase in unemployment due to legislative changes.

Twenty-eight-year-old West Ham United midfielder and Czech football national team captain Tomáš Souček clinched today the Golden Ball for the autumn season's best Czech footballer with 572 points, outshining second-place Vladimír Coufal by 310 points. Souček’s successful season so far has included leading West Ham to a Europa League group victory and securing seventh position in the English Premier League. 

Souček’s pivotal role in the Czech national team earned the quad a spot in the 2024 summer European Championships with his three crucial qualifying goals and 10 overall. Around 40 journalists voted Souček winner in a two-round process.

The Czech Hydrometeorological Institute (ČHMÚ) has reported a decrease in flood-affected areas to fewer than 100 spots across Czech rivers. Presently, 10 locations maintain a high-level flood threat, with stable or declining water levels. 

The warning of potential flooding due to snowmelt and rainfall persists nationwide, the ČHMÚ says. Děčín, Ústí nad Labem, Litoměřice, Kostelec nad Labem, and Němčice are areas that have the highest risk. Prague is deemed safe. Ústí nad Labem is particularly at risk, as water levels of the Elbe River are expected to peak tonight or Thursday at a height of about 660 centimeters.

The Czech Statistical Office (CZSO) has today revealed a third consecutive monthly rise in entrepreneurs’ confidence in the economy while reporting a further fall in consumer confidence, which is now at its lowest point since January. Entrepreneurs' confidence in the economy increased by 1.7 points to 95.2 points (values over 100 indicate optimism), reaching the levels of May this year. 

On the other hand, consumer confidence fell to 84.9 points. “Households rate their current financial situation worse compared to previous months, and more and more respondents believe that their financial situation will continue to deteriorate,” explained Anastasija Nejasova from the CZSO.

The recent Czech-Polish agreement on managing the impacts of the Turów lignite coal mine has stabilized environmental relations between both countries, Czech Environment Minister Petr Hladík said today. He said that the agreement enables Czech authorities to monitor noise, dust, and groundwater near the mine. This pact grants Czech oversight and remote surveillance access, fostering collaborative efforts in environmental management. 

Hladík also emphasized robust Czech-Polish cooperation, extending beyond Turów, encompassing air quality measures and joint initiatives in the Krkonose National Park (which spans both countries). Additionally, an invitation for the Polish Minister of the Environment to visit Prague signifies a commitment to furthering bilateral environmental dialogue, Hladík noted.

Inflation in the Czech Republic is anticipated to weaken next year, signaling a potential recovery for the economy. Analysts project a decrease in year-on-year inflation from the current 7.3 percent in November, with expectations for a January increase around 3.2 percent. Real wage growth is expected to return, offering momentum for economic recovery after a challenging 2023.

Despite concerns about weak foreign demand, particularly from Germany, experts estimate GDP growth at 0.8 to 1.9 percent in 2024. The labor market is predicted to remain stable, with a slight increase in unemployment possible. The Czech National Bank is expected to lower interest rates in 2024.

The prices of older apartments in the Czech Republic are projected to remain stagnant or experience a slight increase of around one percent in the upcoming year, following a trend similar to the second half of this year. Although the volume of mortgages is expected to rise slightly, average rates are unlikely to drop below four percent.

This would maintain the relatively unaffordable nature of apartments for many, leading to a continued interest in rental housing. Experts anticipate that rental prices will not decrease in 2024. Despite a potential gradual decline in interest rates, significant reductions are not anticipated, keeping rates above four percent.

On Christmas Day, Czechs set a new record for social media use, with a year-on-year surge in data transfer by tens of percent, while the use of phone calls and text messages declined. O2 reported a 25% increase in data transmission, with a 3% drop in calls and a 17% decrease in sent SMS.

T-Mobile noted a 24% rise in data traffic, with 5.5% fewer calls, reaching a peak between 10:00 a.m. and 11:00 a.m. on December 24. Vodafone observed a 55% growth in data services, a 6% decline in voice calls, and a 17% drop in SMS. The majority of foreign SIM cards and calls abroad were to Ukraine.

Next year, 70 to 80 percent of Czechs aged ten and above will utilize artificial intelligence (AI) tools, says Lukáš Benzl, director of the Czech Association of Artificial Intelligence. The proliferation of large language models, notably speculating the release of OpenAI's GPT-4.5, is expected to drive swift growth, enhancing language model responses and broadening user applicability.

AI is poised to become an inconspicuous yet integral facet of daily life, Benzl says, infiltrating smartphones and office applications, with rapid adoption in offices, education, and entertainment. Positive developments in healthcare AI applications, including diagnostics, personalized medicine, and reduced medical examination wait times, are also anticipated.

A baby boy named Oliver became the 259th child placed in a baby box in Prague, and the ninth child found in a box at Prague 6 city hall. Ludvík Hess, founder of the baby box network, revealed the news over the holidays, adding that the child was in good health. Jaroslav Černý, manager of the Czech Mint, will provide a gold newborn ducat for Oliver.

The baby box in Prague 6, in operation since July 2010, was upgraded to a new version in June. Activating heating, ventilation, and an alarm upon placement, baby boxes aim to protect unwanted children's health and lives. Critics argue they may infringe on certain rights outlined in the Convention on the Rights of the Child.