Czech news in brief for March 26: Wednesday's top headlines

The Czech National Bank left its base interest rate unchanged at 3.75 percent on Wednesday, marking a second pause in its monetary easing cycle. The decision, made unanimously by the Bank Board, reflects concerns over inflation risks, including rising food and service prices. The financial market had expected the move, and the koruna remained stable. Analysts predict further rate cuts this year, though they are unlikely to be significant.

Fire brigades in the Hradec Králové and Zlín regions faced a cyberattack Monday but took swift action to prevent disruptions, officials said Tuesday. IT teams isolated affected systems and switched to alternative communication methods. Police and the National Cyber and Information Security Office are investigating. Experts are assessing the damage and strengthening security measures. Despite the attack, emergency response services remained fully operational.

The Czech Chamber of Deputies approved a major social benefits reform Wednesday afternoon, consolidating multiple welfare payments into a single state assistance benefit. The bill, aimed at simplifying applications and improving efficiency, expands support for vulnerable groups but reduces an energy subsidy. It now moves to the Senate for debate and could take effect in October. The new benefit will consist of four parts: a living allowance, a housing allowance, a child allowance and a bonus for working or seeking work. 

Nearly half of Czechs believe the country’s current defense spending of 2 percent of GDP is sufficient, while one-third support an increase, a February survey by Median for Czech Radio found. Three-fourths back maintaining at least 2 percent, though a quarter favor cuts. The government aims to raise spending to 3 percent by 2030. The lower house will discuss defense today, with President Petr Pavel participating. In 2024, the Czech Republic met the commitment to spend 2 percent of GDP on defense.

The Czech Constitutional Court ruled Wednesday that the Regional Court in Brno violated a victim’s rights by sentencing her stepfather to probation for rape, calling the punishment unacceptably light. However, it did not overturn the verdict, citing its limited role. The ruling allows the victim to seek state compensation. The court emphasized that future suspended sentences for sexual offenses must be fully justified to uphold their preventive function.

Czech Prime Minister Petr Fiala will join a Ukraine-focused summit in Paris on Thursday, hosted by French President Emmanuel Macron. Leaders from the EU, Canada, and Britain will discuss support for Kyiv and the peace process with Ukrainian President Volodymyr Zelenskiy. The summit follows recent European talks on defense guarantees. Meanwhile, Czech parliamentary leaders will meet EU officials in Brussels to discuss Europe’s defense capacity.

President Petr Pavel emphasized the need for nonpartisan discussion on national security ahead of Wednesday’s parliamentary session on the army’s future until 2035. He cut short his regional visit to attend the debate, called by the opposition ANO movement. Pavel, as commander-in-chief, stressed that security should not be politicized but addressed with broad consensus to strengthen the country’s defense strategy.

Russian discount supermarket chain Mere has quietly expanded in the Czech Republic, opening its fifth store in Jihlava. The chain's owners, the Schneider family, are Russian oligarchs on Ukraine’s sanctions list due to business ties in occupied Ukrainian territories. While the expansion has sparked controversy, Czech authorities have not imposed restrictions. The company operates discreetly, avoiding media and official engagement.

The visitor center at the Roma and Sinti Holocaust Memorial in Lety will reopen for the season on April 3, offering a free guided tour. A related memorial in Hodonín will open April 2, featuring lectures and exhibitions on wartime education and survivor stories. The annual commemoration for Lety camp victims is set for May 11, honoring those persecuted during WWII.

Craftsmen have completed new roofs on the left wing and central hall of Prague’s Industrial Palace, with ongoing steel reinforcement in the right wing. Interior and basement work continues, with full restoration expected by June 2026. The city has paid CZK 1.4 billion so far, with total costs projected at three billion. Originally damaged by fire in 2008, the historic site is being restored for future exhibitions.