Euro adoption in the Czech Republic is likely to be postponed due to the global financial crisis. “I was always convinced that an early euro adoption is the right way to proceed. When many of the key eurozone countries say that Stability and Growth Pact does not need to be of fundamental importance for them, I am hesitating very much about the date of our eurozone entry,” Finance Minister Miroslav Kalousek said Saturday. He wants to put off the decision on the euro adoption date by one year. However, companies that generate a significant part of their revenues on foreign markets, still insist that the single European currency be introduced promptly. “It has nothing to do with the current crisis.Continue Reading

Prague, Oct 12 (CTK) – Czech economic growth could possibly decelerate to3.6 percent to 3.8 percent next year, which would require cuts in the statebudget spending worth Kc10-12bn, Deputy Finance Minister Eduard Janota saidin a discussion programme on the Czech Television (CT) Sunday. The Finance Ministry originally counted on GDP growth of 4.8 percent nextyear on the basis of which it had drafted the state budget for next year. The Czech National Bank (CNB) also foresees economic slowdown to 3.6percent in 2009. “Our calculations are now at similar levels (with the central bank),”Janota said in the discussion programme “Questions of Vaclav Moravec” on CT. “If the economy slows to 3.7 percent next year, then the spending cuts willamount to Kc10-12bn.Continue Reading

Prague, Oct 10 (CTK) – Czech car makers have produced 744,759 units inJan-Sept 2008, which is by 9.6 percent more against last year, yet crisisand laying off up to 3,000 staff is talked about, the Automotive IndustryAssociation (SAP) director Antonin Sipek said at a press conference Friday. Representatives of the automotive industry, which is mainly composed ofsuppliers of Czech and foreign car makers, expect a four percent growth,around one million cars, for the whole 2008 period. SAP will publish more detailed information about this year’s productionnext week. Mild growth should continue even in the next year, mainly because of theHyundai car maker’s launching of production. This year’s sales in the whole segment will be around Kc640bn, same as in2007, SipekContinue Reading

A Czech pharmaceutical company has succeeded in attracting an investor despite world financial crisis which has been hampering most business. The Japanese company Foji Capital has bought 49.8% of I.Q.A. shares. It also pledged to finance other projects of this developmental laboratory. Foji Capital will thus spend tens of millions of dollars in the Czech Republic altogether. Twenty million for projects I.Q.A. develops pharmaceutical products for the treatment of cancer or HIV, but it also owns a patent on dexibuprofen, which releases the effective substance much faster than its ordinary version. “We can sell our patent in the form of licences, but we are considering our own production,” Xenie Svobodová, I.Q.A. board chairwoman, says by way of explanation as toContinue Reading