Czech news in brief for July 7: Tuesday's top afternoon headlines

Good afternoon, most eyes are on Ankara, Turkey, where NATO member states are holding a high-stakes summit this week. For now, no huge hick-up on the Czech side despite the months-long chaos surrounding the question of who from the government or president will attend, who will lead, and who will say what. But other news are also worth looking into. Here are this afternoon's top stories.

Czech President Petr Pavel has called for higher defense spending during an event held on the sidelines of the NATO summit in Ankara, Turkey. "We need NATO, we need each other, and we need strong transatlantic ties," he said, warning against Czechia falling into a "false sense of security" due to its place at the heart of Europe surrounded by EU and NATO allies.

Czechia aims for 2 percent. Just a short time earlier Prime Minister Andrej Babiš - who is also in Ankara, albeit went there on a separate plane with some of his cabinet members - announced the Czech government would add CZK 36 billion to its defense budget next year in order to reach 2 percent of GDP - a NATO commitment. As a reminder, Czechia was one of three NATO countries not to reach that threshold in 2025 and is also set to miss it this year.

Czech consumer prices grew just 1.5 percent year-on-year in June, down from 2.1 percent in May, as grocery and fuel costs finally eased. But services – restaurants, haircuts, repairs – kept climbing 4.5 percent, meaning many households won't feel the relief the headline number suggests.

Behind the drop: Government measures did some of the work – shifting energy fees off household bills and capping June fuel prices – and analysts expect the dip to be short-lived as food prices rebound later in the year.

About 12,000 households in Prague 4 were left without hot water for five days due to a technical failure in the primary pipeline. Subsequent repair works fixed the original problem but led to other leaks appearing, the operator Pražská teplárenská (PTAS) said in a statement.

Scheduled shutdowns. Although this was caused by technical failure, a large share of apartment buildings in Prague face planned and scheduled hot water shutdowns every year, especially in July and August. To know why this happens and how to plan ahead, you can read our brief explainer below.

The European Parliament just adopted a new law - nicknamed 'Lex Ryanair' - to strengthen the rights and compensation claims of passengers across the EU, including Czechia. The changes include a ban on forcing passengers to use airlines' digital apps to get a boarding pass, greater transparency to claim financial compensation for cancelled or delayed flights, and the obligation for airlines to provide a seat free of charge for someone accompanying a child.

What else? Under the new rules, passengers cannot be charged extra fees to correct name spelling errors, for instance, and airlines should allow travelers to carry a personal item free of charge measuring up to 40cm-30cm-15cm.

Czech energy provider ČEZ announced it was preparing to raise the prices of some fixed electricity and gas tariffs from the end of August, citing the increase in global wholesale prices caused by the conflict in the Middle East. According to the utilities company, this could impact over 60 percent of customers whose fixed rate contracts are set to expire this year, and gas tariffs could go up by as much as 17 percent in some case.

Self tap on the back. ČEZ spokesman Roman Gazdík said that the company had "managed to keep all price lists unchanged since the beginning of the crisis in the Middle East," but added that since global prices had still not dropped despite the ceasefire agreement, ČEZ was forced to follow in the footsteps of other suppliers and raise prices.