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Persistently high temperatures and below-average rainfall are worsening drought conditions across the Czech Republic, with rivers recording exceptionally low water levels, according to the Czech Hydrometeorological Institute (CHMI). In some locations, river flows have fallen to historic lows.

The drought has been driven by both a lack of precipitation and prolonged heat, which has increased evaporation. Groundwater levels have also deteriorated, with deep wells showing the lowest readings since records began in 1961, the institute said.

Hydrologists warned that if very warm weather continues next week, drought conditions affecting both surface and groundwater are likely to expand further.

Ministers in Prime Minister Andrej Babiš's government began a two-week summer break on Friday. The cabinet will resume its regular meetings on July 17, with preparations for next year's state budget expected to dominate the agenda.

Prime Minister Babiš and Finance Minister Alena Schillerová already launched budget negotiations last week. The government is expected to spend much of September finalizing the spending plan. Asked whether he would focus on campaigning ahead of October's local and Senate elections, Babiš said the budget discussions would take priority.

Meteorologists declared a smog situation in Prague and the Central Bohemian Region this afternoon due to high concentrations of ground-level ozone. People should avoid increased physical exertion outdoors, especially in the afternoon hours, the Czech Hydrometeorological Institute said. The recommendation applies mainly to people with chronic respiratory problems, the elderly and young children. According to the warning, a smog situation remains in effect in the Ústí nad Labem Region, which meteorologists announced on Thursday.

The smog situation is linked to the current extremely high air temperatures. Today is expected to be exceptionally hot across the Czech Republic, according to forecasts. In some places, temperatures could reach as high as 40 degrees Celsius, something that has already occurred this year at the end of June and again this Thursday.

Czech household debt to banks increased by CZK 26.5 billion month on month to CZK 2.72 trillion in June. The volume of loans to non-financial corporations rose by around CZK 38 billion to CZK 1.62 trillion, according to preliminary data published today by the Czech National Bank. Household debt to banks has been rising continuously since February 2016. The only exception was April 2022, when it declined month on month. According to the central bank, this was due to the withdrawal of the banking licence of the Czech branch of Russia's Sberbank. Housing loans accounted for the majority of household debt, representing 77% of the total in June.