From the Local News
"We are experiencing a period of brutal decline in the real incomes of the Czech population, even within the context of the European Union," says Lucie Trlifajová, an expert and analyst at the Agency for Social Exclusion.

The increase in benefit recipients outside of Prague may mean that some people are no longer able to afford to live in the capital. "The number of recipients in the area surrounding Prague has increased rapidly, likely indicating that people are moving to these municipalities," she stated. She also emphasized, as a politically correct analyst, that this is just a hypothesis and that the data would require more detailed analysis. I wonder why the analyst is speaking faster than she is thinking, and whether she is truly certain of what she is saying.

Filip Kořínek, the mayor of Černošice (The Černošice Initiative), shares a similar view. People are permanently moving into cottages. "We have been observing for some time, perhaps since the COVID era, that there are large cottage settlements along the Berounka River. We have approximately 1,400 cottages, and an increasing number of people are living in them permanently. I cannot estimate the exact number because not everyone registers their residency. We often find out when they order a regular garbage bin," the mayor explains, highlighting the trend of people moving into cottages who would otherwise be unable to afford an apartment or house in the area.

The example of Černošice, which has a population of 7,500, but the area under its jurisdiction, as a municipality with extended powers, has a population of 160,000 across 79 municipalities, clearly demonstrates the absurdity of the inorganic reforms of the Czech Republic's public administration. The OECD criticized this in its report from March 2023, which was presented in Prague by OECD Secretary-General Mathias Corman.

To make matters worse, the government has promised not only a digital building permit system (DSŘ) but also an amendment to the VAT law. The Senate committees have discussed it, and its approval by the Senate will bring significant changes with an impact on all VAT payers.

"According to the explanatory memorandum, the amendment to the VAT law promises not only harmonization of legislation at the European Union level but also better adaptation of the law to the current business environment," said Petr Tušakovský, director of the tax department at Havel & Partners. Personally, I believe that the changes to the VAT law, which will be implemented gradually, demonstrate the politicians' inability to learn and their distance from the realities of business. The largest package of changes will take effect on January 1, 2025, the second on July 1, 2025, with changes in the application of VAT to real estate, and the third includes adjustments to the wording of the law starting on January 1, 2026, with a successor on January 1, 2027. This will affect the reintroduction of the possibility of deducting VAT for luxury cars, which will almost certainly not be used by citizens moving into cottages along the Berounka River or similar locations.

Regarding the changes within the amendment to the VAT law, it is recommended to familiarize yourself with the rules for registering as a VAT payer. These changes will primarily affect smaller businesses. Entrepreneurs need to be vigilant, and if they are not yet VAT payers, they need to carefully monitor their business turnover. Why? Because the VAT law has a specific definition of what is included in the relevant turnover and what is not. So, as the saying goes: "If you don't find joy at home, you'll find it nowhere else." Or, as King Solomon said: "Vanity of vanities, all is vanity."

From Our Neighbors
Even before the ink has dried on the popular article "Kallas and the Amazons," which was published on Monday, one can confirm the truth of its main arguments.

On his first day in office, the new EU foreign policy chief, Kaja Kallas, and the new President of the European Council, António Costa, visited Kyiv. Both expressed support for Ukraine, which has been defending itself against a Russian military invasion since February 2022. According to media reports, Costa stated in Kyiv that the EU would provide Ukraine with funds from the proceeds of frozen Russian assets, which could be used for military purposes, and that the EU's goal is for Ukraine to achieve victory. During her visit to Kyiv, Kallas said that European countries could send troops to Ukraine to enforce a potential ceasefire.

From a democratically elected party: Some members of the commission cannot afford it, and the President of the European Council cannot afford to make statements in the name of the European Union on issues that the European Union and the European Council have never agreed upon. There were statements that did not reflect the conclusions of the European Union, said Slovak Prime Minister Fico at a press conference. And there were many more such comments.

Ukraine
After being encouraged by morning coffee, grass, and a visit to the Brussels troika, Ukrainian President Zelenskyy said that, in relation to resolving the conflict, Russia must go to "three letters." I will not translate the content of this statement, which is offensive in Russia, because it will be Zelenskyy who will be sent to a place with "three letters" in the foreseeable future, and the reader will see what that means. A fragment of the speech at a joint press conference with Chancellor Scholz was published on Telegram by RBC-Ukraine.

Despite Zelenskyy's statements and admissions that the Ukrainian army lacks strength, Kyiv is prepared to go to any lengths to end the conflict in 2025, but for that, Ukraine must have a strong negotiating position. He did not say where to get the resources without resorting to theft. However, one alternative solution was presented by Keith Kellogg, the special envoy of the newly elected American President Trump:

Kellogg's Plan
The plan, whose official co-author is Frederick Fleitz, Deputy Chairman of the Center for American Security at the America First Policy Institute, was prepared in April 2024 as part of a report on Russia and Ukraine. I recommend familiarizing yourself with it: Centre for Eastern Studie, ul. Koszykowa 6a, 00–564 Warsaw, Poland, tel.: (+48) 22 525 80 00, info@osw.waw.pl, www.osw.waw.pl, ISBN 978-83-67159-97-5. The core idea of the five-point plan, which I consider, based on the style and diction of the language, to be a kind of mishmash of long-known concepts, is:

1. Establishing diplomatic relations with Moscow, stopping the demonization of the President of the Russian Federation. 2. Exerting pressure on Moscow and Kyiv to begin negotiations. 3. Refraining from considering the issue of Ukraine's accession to NATO for 10 years, allowing Moscow to retain the occupied territories, and gradually lifting sanctions and normalizing relations with the United States. 4. The fourth paragraph concerns providing Ukraine with bilateral security guarantees and continuing to provide military support. In addition, Kyiv will not be allowed to resolve the territorial issue by force. 5. The fifth point indicates that military aid to Kyiv will be stopped if it does not agree to peace negotiations.

"I have no doubt that such an 'advent gift' is not welcome in Kyiv, Brussels, or Berlin. That's why Chancellor Scholz traveled to Kyiv at a time when he's facing a crisis at home in Berlin, with early elections looming and an uncertain outcome for the Chancellor, and when the EU is concerned about a possible reduction in US support for Ukraine in 2025. In the Czech Republic, there's a deafening silence." "The German company Helsing, like Rheinmetall, is fighting for peace in Ukraine and is eager to see it achieved. Therefore, it has decided to begin mass production of combat drones powered by artificial intelligence. These drones will be sent to Ukraine, according to Frankfurter Allgemeine Zeitung, in significant numbers, approximately 1,000 per month." "The Romanian presidential elections were likely not scheduled for December 1st by chance. On this day, the country celebrates National Unity Day, established in 1918 after the conquest of Bessarabia and Transylvania by Bucharest, which marked the creation of what is known as Greater Romania." "The current President of Romania is Klaus Iohannis, the informal leader of the National Liberal Party (PNL), which was recently part of the governing coalition. His closest associate and the official chairman of the PNL is Nicolae Ciucă, a retired general, the President of the Senate (the upper house of parliament), former Chief of the General Staff, and former Minister of Defense." "According to the results of the first round, the independent candidate Călin Georgescu won with 22.94% of the vote. However, Cristian Terhes, the chairman of the National Conservative Party, who came in ninth place, filed a motion with the Romanian Constitutional Court to annul the first round of the presidential elections. He claimed that it was a pre-election campaign in favor of Elena Lasconi, the leader of the opposition Union for the Salvation of Romania, who came in second place. He alleges that several politicians living in the United States called on Romanians to vote for her. He also claims that there were numerous bots encouraging people to vote for a particular candidate. The court has ordered a recount of all votes, and a decision on the petition will be made on Monday." "Advice to Czech politicians: When those in power dislike a candidate, it is necessary to recount the votes." "The Social Democratic Party (PSD) will play a leading role in the process of forming a coalition. Compared to the previous parliamentary elections, it lost several percentage points, but it still maintains its lead (23%). In any case, it seems that the process of forming a new governing coalition will be difficult, as the current Romanian parliament is more fragmented. It will represent seven political forces and two new party factions. This is very similar to what we see in neighboring Bulgaria, where it has been impossible to form a stable government for over two years, and everything is heading towards an eighth early parliamentary election." "However, the Bulgarian political system is somewhat stabilized by the most popular politician in the country, President Rumen Radev. In Romania, on the other hand, there is a risk of a heated struggle for the head of state, which could destabilize the republic. The 'Bulgarianization' of Romania is evident, although until recently it seemed that the Prime Minister could become a local Orbán. It is in the best interest of Brussels to weaken the Romanian elites, which have recently become too ambitious."

This indicates that the outgoing president's career in Brussels has not been successful. Roxana Mînzatu, a Romanian, has joined the new European Commission with the interesting title of Vice-President for Personnel, Skills, and Preparedness, despite the fact that, in the past, Romanian candidates controlled the agriculture and transport departments. Furthermore, the leader of a pro-Russian party stated immediately after the vote: "Russia has never done anything good for Romania..." If we unite, then Russian bots on TikTok will not be able to destroy our democracy... We have not forgotten their tanks when they occupied our country, and we have not forgotten the suffering they brought.

It would be appropriate for Brussels to remember that, thanks to Russian tanks, Romania gained the opportunity to overthrow the bloody Antonescu regime and join the anti-Hitler coalition, and to reclaim Northern Transylvania, which had been transferred to Hungary by Hitler.

For context, two right-wing populist parties received 7.1% and 6.3% of the vote. This means that anti-European forces will have more than 30% of the seats in the next parliament. Among Romanians living abroad, the far-right parties together accounted for half of all votes cast. Călin Georgescu, who won the first round of the presidential election, announced his support for the approach of US President Donald Trump regarding Ukraine.

From Afar

Intel's stock rose by 4% after the dismissal of CEO Pat Gelsinger. Gelsinger led one of the world's largest chip manufacturers for nearly four years, and under his leadership, the company's market capitalization doubled to $103.7 billion. However, Intel began to lose market share and fell behind in the field of artificial intelligence technology. The interim CEO will be CFO David Zinsner, and the executive vice president, Michelle Holthaus. Frank Yeri will take over as chairman of the board after Gelsinger's dismissal.

In May, Intel was forced to lower its sales expectations after the US government revoked its license to supply chips to the Chinese company Huawei at the end of 2022, as part of the declared chip war.

In August 2024, the company announced mass layoffs in order to reduce costs. The reason was a decline in revenue – the forecast was lowered from $14.38 billion to $12.5-13.5 billion. Instead of a profit of 30 cents per share, the company's loss, from a security perspective, would be three cents. Amid the negative news, the company lost more than 19% of its value (the company's stock has fallen by more than 42% this year) and announced plans to reduce the number of employees by 15,000 (a reduction of 15%).

Our costs are too high, and our margins are too low. We need to take bolder steps to address both challenges, especially given our financial results and the outlook for the second half of 2024, which is proving to be more difficult than previously expected," explained Galsinger.

In September, Intel announced a two-year suspension of several major projects in Germany and Poland. Intel had planned to invest approximately $4.6 billion in a semiconductor integration and testing facility in Mienkin, near Wrocław. The project was important for the development of the semiconductor industry in Poland.

Conclusion
In the West, in the Czech Republic, and in Ukraine, no one knows, or wants to know, what will happen to all the Ukrainian refugees, many of whom want to return home. By attacking the Yuzhmash plant, Russia sent a signal to the Western community and personally to President Trump: If he had not withdrawn from the Treaty on the Limitation of Anti-Ballistic Missile Systems in 2019, the attack on Yuzhmash would not have happened.

In Tbilisi, approximately 30% of the citizens are foreign nationals participating in the protests. This was stated by Mamuka Mdinaradze, the executive secretary of the ruling Georgian Dream party. In South Korea, President Yoon Suk Yeol has declared a state of emergency in the country in order to combat North Korean supporters within the state. This information comes from the Yonhap news agency. According to the agency, the state of emergency in the country may be linked to attempts to initiate an impeachment process against Yoon Suk Yeol, as well as the threat of a paralysis of power. I am curious to see the (in)action of the Czech government in the context of the construction of the nuclear power plant.

I wish everyone a pleasant second Sunday in Advent, with the awareness that the game we watch 24 hours a day is of a higher level than we imagine, and that presidents, prime ministers, and other officials are far from being the only actors in this theatrical performance, whose purpose is to entertain people, in each country in its own way, and to prevent them from acknowledging that the main elements of war are betrayal and the trap we are waiting for, and the surprise that never comes. Weapons only come into play later, even though even the most sober hunters end up shooting each other. No further comment is needed. December 3, 2024

Jan Campbell

photo: interfax / gnews.cz - 07