Breakfast Brief – 27 August 2009

NEWS
Topolánek’s attacker may have been at Kočka’s funeral
Photos of the funeral of murdered entrepreneur Václav Kočka last October reveal that one of the security guards present was Martin Hofman, one of four men charged with the recent attack on Mirek Topolánek. Jan Kočka, the deceased’s brother, denied knowing Hofman. ČSSD chair Jiří Paroubek, who is close to the Kočka family, has rejected any parallels between attacks on Topolánek and himself this year. Police have refused to investigate claims the attack on Topolanek was politically motivated.
Source: most Czech press

Lone MP complains about October polls
Independent MP Miloš Melčák has filed a complaint with the Czech Constitutional Court against the shortening of the election term of the Chamber of Deputies and the president’s decision to call an early poll. He claims his right to be elected has been violated and the early elections will prevent him from holding office for the intended four years. Constitutional Court general secretary Tomáš Langášek said this might be the first Czech complaint lodged against constitutional law, however legal experts claimed it was inconsequential and would not threaten the early elections.
Source: LN 1, 3, Právo 3

ODS promises political wage cuts
In a bid to curb the growing state deficit, the ODS has devised a plan to make the wages of ministers and the members of parliament depend on the state of the budget deficit, the party’s economic strategist Martin Kocourek said yesterday. Next year’s budget deficit is predicted to be as high as 6%-7% of GDP. ČSSD called the plan vote-seeking.
Source: HN 1-3, 8

Ombudsman blasts local debt collectors
Public ombudsman Otakar Motejl yesterday accused Chomutov city council of improper debt collection, saying that bailiffs on Tuesday had seized property worth far more than people’s debts. A council spokesperson told MfD that debt collectors had correctly valued the confiscated items.
Source: MfD A2, Právo 1, 5

Tunnel project under way despite rulings
The Supreme Administrative Court last week upheld a decision by Prague Municipal Court in April to cancel one of the building permits for Blanka tunnel. Daily Hospodářské noviny reports that neither Prague City Council nor Metrostav, the contractor know of the courts’ decision, and they are proceeding with the construction.
Source: HN 1, 6

Over 10,000 homes seek free electricity
More than 10,600 people have asked that their electricity bills be waived for three months under a rescue scheme from state-run power supplier ČEZ. The scheme is available to customers who have lost their job after working for at least six months and have previously paid their bills on time. Corporate customers can request a one-month extension on monthly payments this year, an option so far chosen by 1,400 firms.
Source: ČTK

Cabinet OKs bill to ‘unmuzzle’ press
Government ministers yesterday approved an amendment that will let journalists publish some classified information on criminal prosecutions if that publication serves “the public interest” and helps “the effective protection of society”. If approved by parliament, the bill, drafted by Human Rights Minister Michael Kocáb, will take effect in January 2010. Under the current law effective since April, journalists can go to jail for up to five years for leaking police wiretaps or airing the names of the victims and suspects in some crimes.
Source: Právo 3, ČTK

Govt will keep 40% of EU pres staff
The government will offer full-time positions to only around 40% of the 338 temporary staff hired for the country’s EU presidency in the first half of this year. The government had told ministers in June to put former EU presidency staff in vacant jobs, but it is now seeking spending cuts.
Source: ČTK

Watchdog calls unemployment rules harsh
Deputy Ombudsman Jitka Seitlová said yesterday that some unemployed people are losing benefits because they cannot find unpaid community work despite all their efforts. Under a bill effective since January, those without work for more than six months must volunteer for at least 20 hours of community work per month, or they may lose some unemployment support. Seitlová called for the law to be amended.
Source: ČTK

Far right to protest new Brno mosque
The National Party plans to hold a rally on Saturday outside a mosque in Brno protesting the Muslim community’s plans to build a second worship facility in the Moravian city.
Source: ČTK

No refunds for late trains yet
Partial fare refunds will not be offered for another five years to Czech passengers on delayed trains, under changes to rail laws approved by cabinet and sent to parliament. The EU requires that carriers refund at least 25% of fare costs if a train is more than an hour late and 50% if it is delayed by more than two hours.
Source: ČTK

BUSINESS
ČSA prepares for crash landing
Czech Airlines (ČSA) is out of cash and struggling after marked declines in passenger numbers and ticket prices, CEO Radomír Lašák told a press conference yesterday. The state-run carrier will scrap unprofitable flights to New York, Toronto and Manchester and reduce its services on some other routes. It will also sell some assets, including six of its 50 aircraft, and sack around 860 people. Lašák said his predecessor Jaroslav Tvrdík had failed to capitalise on an earlier boom period to generate financial reserves. Lašák and the board of directors offered their resignations on condition that trade unions agree to pay cuts of 30% and 15% for pilots and other staff, respectively.
Source: most Czech press

Bank expert: ČR will recover from crisis next year
Herbert Stepic, head of Raiffeisen International, said that the Czech economy generally reacts to global economic developments with a six-to-eight month delay, and he therefore expects the country to recover from the economic crisis by mid-2010. He said the central European region will remain attractive for investors due to its well-functioning tax system, highly educated managers and favourable currencies.
Source: MfD B2