Czech news in brief for July 3: Wednesday's top headlines

According to data from the Czech National Bank, the aggregate net profit of banks and savings banks in the Czech Republic increased by 22 percent year on year in the first quarter of this year, reaching CZK 25.9 billion. The balance sheet total of banks also saw a significant increase of CZK 767 billion compared to the previous year. This growth was mainly driven by higher interest income and income from fees and commissions. Analysts attribute the good results to effective cost management and increased interest in investment products.

According to the Czech Ministry of Defense, the Czech Republic has provided military equipment worth CZK 6.75 billion to Ukraine since the start of the Russian invasion in February 2022 (until May 2024). The donated aid includes aviation equipment, ammunition, tanks, infantry fighting vehicles, and other vehicles and weapons. Defense Minister Jana Černochová emphasized that the Czech Republic has been supporting Ukraine since the beginning of the conflict and was one of the first to offer military aid.

According to a Czech Military Intelligence (VZ) annual report, AI-based language models can be misused for spreading propaganda, manipulating public opinion, and launching cyberattacks. This technology can produce fake images and videos, including pornographic content targeting specific political figures for blackmail or election interference. Additionally, generative AI audiovisual tools can create realistic deepfake videos and mimic voices for spear-phishing attacks. "Such an attempt was recorded when a deepfake of President Volodymyr Zelenskyy was circulated calling on the armed forces of Ukraine to lay down their arms," VZ writes.

Ukraine and the Czech Republic are close to finalizing a bilateral security agreement, Ukrainian President Volodymyr Zelenskiy's office announced on Telegram. Led by David Konecky of the Czech Foreign Ministry, the talks aim to have the agreement signed at the European Political Community summit in London on July 18. Czech Prime Minister Petr Fiala noted that the agreement holds symbolic significance in international relations.

There is no current proposal to allow dismissal from work without reason, stated Vladimír Horna of the Ministry of Labor in a parliamentary committee discussion. The ministry rejected the idea while preparing for the Labor Code changes. Despite support from ODS and TOP 09, the coalition lacks consensus. Opposition and trade unions oppose the measure, citing international labor standards. Over 52,000 signed a union petition against it.

According to insurance companies, this year's exceptionally stormy weather in Czechia has caused extensive damage, exceeding hundreds of millions of crowns. Climatologists report a significant increase in stormy days compared to previous years. In May and June, Generali Česká pojišťovna and Kooperativa registered thousands of claims, with damages reaching about half a billion crowns each. More strong storms are expected this weekend, meteorologists warn.

Pražská energetika (PRE) will offer cheaper energy to nearly 700,000 non-fixed customers starting in September. Electricity prices will drop by up to 20 percent, and gas prices by 16 percent, following a decline in wholesale energy prices. New electricity prices will be CZK 3.20 per kWh without VAT, while gas will be CZK 1.45 per kWh. Automatic price changes promise significant savings for customers.

The Czech-based UAC company is testing suicide drones for the Ukrainian army, Defence Minister Jana Cernochova announced. Producing reconnaissance drones since spring, UAC aims to launch production of target-destroying drones soon. The company, Czechia’s largest drone supplier to Ukraine, plans to offer one set for training Ukrainian soldiers in Czechia. UAC’s future plans include seeking customers beyond Ukraine.