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Czech banks and savings institutions saw their net profit rise by 8% year-on-year to nearly CZK 60 billion in the first half of 2023, according to the Czech National Bank. Banks' financial and operational earnings increased to CZK 125 billion, driven by higher interest income and fees. Major banks like Česká spořitelna, ČSOB, and Raiffeisenbank all reported profit growth, while Komerční banka saw a 22% decline. Despite the introduction of a windfall tax, the government collected only CZK 700 million from an expected CZK 33 billion. Analysts expect minimal impact from the tax in future years.

The Czech Ministry of Justice has submitted a proposal to the government to amend the Criminal Code and other criminal legislation. The proposed changes aim to promote alternative sentencing, adjust penalties for minor crimes, and partially decriminalize and legalize the cultivation and possession of cannabis. The ministry stated that the reform will modernize criminal law and streamline criminal proceedings.

The amendments also focus on restorative justice, enhancing support for crime victims, and ensuring swift state responses to violations of alternative sentences. Justice Minister Pavel Blažek will present the proposals to President Petr Pavel on October 1. The ministry has also drafted a "children’s certificate" for background checks for individuals working with children, which will be reviewed by a parliamentary subcommittee this week.

Ostrava, the third most populous city in Czechia, has fully restored its supply of both heat and hot water after recent floods, according to Veolia Energie. The company confirmed that the services are now back to pre-flood quality, with no provisional measures in place, except for the Martinov Industrial Area, which still lacks technological steam. Flooding had shut down pipelines and the Třebovice power plant, leaving the city without heat and hot water for several days. While the plant continues extensive repairs, alternative solutions and backup systems have allowed full restoration of services across the city.

The leadership of the Pirate Party, which is part of the ruling coalition, has resigned in the wake of the party’s dismal showing in the elections. Party leader Ivan Bartoš announced their decision following a late-night meeting on Sunday evening. The party is to select a new leadership at a party conference on 9 November. Long-time chairman Ivan Bartoš will not run for re-election. Prime Minister Petr Fiala has said he respects the decision and will meet with Deputy Prime Minister Bartoš to discuss the consequences.

The Pirate Party suffered the biggest defeat of all the ruling parties in the regional elections, losing 96 regional councilors and securing only three seats in the Pilsen Region.