NEWS
Govt will submit budget changes before elections
Prime Minister Jan Fischer said yesterday the interim cabinet will put its budget savings package to parliament before the October elections. The cabinet’s proposals include raising VAT rates and freezing pensions for seniors. Mirek Topolánek (ODS) called the government’s decision “buck-passing of the highest level” and said it will only stir up endless pre-poll debate. Jiří Paroubek (ČSSD) said his party wants voting to take place on individual proposals.
Source: most Czech press
Lobbyists had access to key govt records
A BIS intelligence report says lobby groups last year had access to important government information about public tenders, state subsidies and legislative processes, giving them influence over state property management. Business lobby groups were mainly interested in the activities of the Administration of State Material Reserves (SSHR), the Agriculture Ministry and Lesy ČR (LČR). The report also mentions that Russian agents have been trying to influence Czech politicians.
Source: most Czech press
Šnábl steps down
The head of the Finance Ministry’s international legal department Radek Šnábl handed in his resignation following press reports that he was sentenced in April to two years on probation for tax fraud worth CZK 5.5 million in 1999. Šnábl handled state arbitration cases worth tens of billions of crowns. Finance Minister Eduard Janota said that Šnábl will continue to cooperate closely with the ministry.
Source: most Czech press
Pre-election poll: ČSSD has 5% lead on ODS
According to a STEM poll, the Social Democrats (ČSSD) would garner 29% of votes and the Civic Democrats (ODS) only 24.1% if elections were held right now. STEM suggests that ČSSD could achieve a majority government by joining forces with either ODS, KDU-ČSL and TOP 09, or possibly KSČM, while ODS could only do so with ČSSD.
Source: most Czech press
Chomutov mayor gets death threats
Chomutov mayor Ivana Řápková received two death threats by e-mail on Friday and Sunday following the seizure of property by city bailiffs last week, according to Tomáš Branda, the council spokesman.
Source: Právo 1, 3
ODS promises to solve economic crisis
The Civic Democrats (ODS) unrolled their election platform yesterday, underlining plans to stabilise the state budget over the next eight years without specifying how. Other promises from ODS include not increasing the tax burden; curbing unemployment by giving businesses hiring incentives; cutting bureaucracy and the misuse of social benefits; and reducing lower pension insurance fees for those with children.
Source: most Czech press
ČSSD unrolls new election campaign
Social Democrats yesterday launched the next phase of their election campaign, presenting state debt and the lowered standard of living of senior citizens as key issues for voters, according to election manager Jaroslav Tvrdík. The campaign compares the party’s activities over the last three years with those of the rival Civic Democrats.
Source: ČTK, Právo 2, LN 2
Švejnar says no to EU post
Jan Švejnar, who unsuccessfully ran for president last year, has turned down the Christian Democrats’ offer to nominate him for Czech EU commissioner. According to KDU-ČSL chair Cyril Svoboda, Švejnar baulked at the prospect of becoming the object of a pre-election party tug-of-war.
Source: Právo 2
Few police back govt reforms
An internal audit of 20,000 police shows that only 23% support government proposals to separate the police budget from that of the Interior Ministry so as to increase police independence. The respondents said the reforms were insubstantial and superficial.
Source: ČTK, MfD A5
Transport Min tackles road rage
The Transport Ministry will invest CZK 2 million in a project to monitor aggressive behavior behind the wheel and come up with solutions. The ministry also released the last of the television spots addressing road rage under the slogan “Nemyslíš – zaplatíš!” (“If you don’t think, you’ll pay”).
Source: ČTK, LN 4
Study: Drinking rate stable despite more booze access
Though alcohol distribution was up by 40% between 1996 and 2006, consumption grew by only 8% over the period, according to a new report from research body Česká technologická platforma pro potraviny.
Source: ČTK
BUSINESS
SkyEurope goes bust, Prague flights grounded
SkyEurope announced its bankruptcy last night, according to a report on the website of Slovak daily SME. The Slovak budget carrier will be barred from flying out of Prague Airport because of unpaid debts, said airport spokeswoman Eva Krejčí yesterday.
Source: most Czech press
Personal loan interest hits 7.03%
The average interest rate on household loans climbed to 7.03% at the end of July, up 6.84% year-on-year, the Czech National Bank said yesterday. Loans are getting more expensive despite the fact that country’s key rate is at historic low of 1.25%. HN reports that banks are worried people will fail to meet debts due to growing unemployment.
Source: HN 1, 13
One bidder down in metro D tender
Prague Public Transit Company (DPP) yesterday disqualified Mott MacDonald from the state tender to construct metro line D after the firm offered only CZK 390 million. DPP spokesman Ondřej Pečený told Hospodářské noviny Mott had not explained how it would reach its goal with this budget. Mott local head Jiří Petrák said the company had explained its bid to both DPP and the Office for the Protection of Competition.
Source: ČTK, MfD C3
Unipetrol loss deepens in Q2
Hit by reduced demand, oil company Unipetrol posted a greater than expected loss of CZK 359 million in the April-June period. The company said the downturn has hit its shares, but it hoped cost cuts would lead to an operating profit this year.
Source: Reuters, HN 13
Regional rail to get CZK 2.7 billion for next decade
Transport Minister Gustav Slamečka announced yesterday that regional railways should get CZK 2.65 billion annually over the next ten years. The new budget should ensure that cuts to next year’s regional rail services will be only up to 2% instead of the threatened 12%.
Source: Právo 15, ČTK
Koh-i-noor still mulling expansion
Office supplies producer Koh-i-noor has halted the construction of new factories in the Balkan states and Vietnam due to a drop in prices of industrial properties. The company is focusing instead on entering the Brazilian market, its owner, Vlastislav Bříza said, adding that Russian market sales were down by up to 40% though Western markets were more stable. The company is negotiating with Swiss businesses, among others, he said.
Source: E15 1, 6 Mon
Launch of digital TV station halted
Production has stopped at TV 7, which was scheduled to start broadcasting in May, after its failure to settle payments with operator Czech Digital Group. TV 7 claims that monthly broadcast fees of CZK 2.8 million are too high for small broadcasters. The Czech Telecommunication Office has begun investigating.
Source: LN 14
Property market on the up
Real estate agents quoted in Lidové noviny say that prices of flats and houses are starting to grow again and people should no longer postpone their property investment plans.
Source: LN 18
On-line no longer the best deal
A survey by Hospodářské noviny and AkcniCeny.cz reveals that products sold on-line are often not cheaper than those offered in brick-and-mortar stores. The trend is reportedly due to the heavy discounts offered by chain stores as consumer spending drops.
Source: HN 1, 16
Transport unions plan October strike
A spokesman for the Engine Drivers’ Federation Libor Poláček said yesterday that transport unions plan to strike for an unlimited period in October due to the Transport Ministry’s failure to come through on promised legislative reforms. The strike would affect railroads and Prague public transport.
Source: ČTK
