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Breakfast Brief – 2 June 2009

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Table of Contents

NEWS
Online registration for long-term visas launched
On Monday, the government introduced the online system Visapoint to boost the transparency of the visa process and ensure fair access. Within the programme, citizens of 16 Asian, eastern European and Balkan countries applying for long-term visas have to register at www.visapoint.eu to arrange an interview with an embassy officer.
ČTK

Medical certificate necessary for some visa applications
As of Monday, applicants for long-term visas from Kenya, Ukraine, Moldova, Vietnam and a few other countries will have to present a medical certificate confirming that they do not have tuberculosis, syphilis or HIV. Foreign Affairs Minister Jan Kohout said the measure is aimed to protect public health.
E15 4

Barriers removed from former RFE/RL HQ
The National Museum took over Radio Free Europe/Radio Liberty’s previous Prague location on Monday. Concrete barricades are being taken away after eight years, and the police protection, introduced after the September 11 US attacks, has ended.
most Czech press

Surveys say ODS will win EP elections
Last week’s survey by the STEM agency gave the Civic Democrats 29.3% of the 5 and 6 June vote, leaving the ČSSD in second with 22.8%. The SC&C agency gives the ODS 31.7% and the Social Democrats 27.3%. SC&C’s Jana Hamanová said the egg attacks on the ČSSD’s Jiří Paroubek did not have much effect on the results. Paroubek said his sources confirm that the Social Democrats will win by 1%.
LN 1, 12

400 people protest in Brno by turning their back to ČSSD
Up to 400 people protested Monday at a rally for the Social Democrats’ campaign for the European Parliament by turning away from the stage and interrupting speeches by whistling, booing and jingling their keys.
ČTK

Prague’s central station completes second stage of renovation
Phase two of the reconstruction of the main railroad depot, begun in January 2008, has been completed, with 3,000 square metres of shopping space opened to the public on Monday. More shops and passenger facilities will open on 24 June.
ČTK

SD-SN withdraws from elections
The political party Spojení demokraté – sdružení nezávislých is withdrawing from the European Parliament elections to support Starostové a nezávislí, the movement of mayors and independent candidates.
ČTK

Komorous is new Deputy Interior Minister
Interior Minister Martin Pecina appointed on Monday Jiří Komorous, the former head of the national anti-drug centre, as his first deputy. One of Komorous’s tasks at the ministry will be to form a special team to combat extremism.
ČTK

BUSINESS
Czech shares up 6%
Shares on the Prague bourse rose by 6.2% Monday, the biggest growth in two months. Komerční banka and the mining company NWR closed nearly 11% higher. HN says stock markets worldwide were boosted mainly by news on growth of Chinese industrial production and a recovery in global demand.
HN 15, 22

Govt approves extra CZK 3.2bn for regional rail routes
On Monday, the government approved an extraordinary CZK 3.2 billion for Czech Railways’ money-losing local transport. The state-run company had threatened to “radically” reduce operation and investment in its fleet if it did not get the subsidy.
ČTK, Právo 18

Govt wants CZK 20bn bond issue to finance motorways
The government wants to issue bonds worth nearly CZK 20 billion to finance transport construction projects. Finance Minister Eduard Janota said on Monday that the money would go primarily for the completion of the D47 motorway from northern Moravia to Poland. The state owes CZK 1.5 billion to companies constructing the highway and wants to settle its debt by the end of the year, Road and Motorway Directorate spokeswoman Martina Vápeníková said Monday.
most Czech press

State budget shows CZK 71.4bn gap at the end of May
The deficit reached CZK 71.4 billion at the end of the month, the Finance Ministry said on Monday. The full-year gap was approved at CZK 38.3 billion, but is expected to end up at roughly CZK 150 billion, owing to the economic crisis.
ČTK

ČEZ to resume production in Dětmarovice power plant
State-run energy giant ČEZ will begin production anew at the coal-fired Dětmarovice plant in the next few days, thanks to an agreement with its top coal supplier, OKD. Details of the accord were not published, but it will enable ČEZ to operate the Dětmarovice plant, which it had wanted to shut down until the end of August to save costs, while OKD will be able to save hundreds of jobs in its north Moravian mines, Ivan Lapin of ČEZ said.
ČTK, E15 14

ČEZ takes 76% of Albania’s OSSH, plans to expand nuclear elsewhere
ČEZ became the owner of a 76% stake in Albania’s only power distributor, OSSH, on Monday. The Albanian government signed the privatisation contract in March. ČEZ paid EUR 102 million for the shares. ČEZ is also planning to expand its existing nuclear energy program from the Czech Republic and Slovakia to Hungary, Bulgaria, Romania, the Baltic and Poland, Chief Sales Officer Alan Svoboda said at the European Nuclear Forum in Prague.
ČTK, E15 14

Older mortgages might be eligible for subsidies
Clients who failed to apply for the 1% state subsidy on mortgage values will get a second chance under a proposal being prepared by the Regional Development Ministry. The only conditions are that applicants must have been under 36 years old when taking out the mortgage and have borrowed the money before 1 January 2005.
LN 1, 15

V4 agrarian chambers demand minimum milk prices
Agricultural chambers from the Visegrad Four countries called on the European Commission Monday to immediately introduce price standards for cow milk. The chambers also decided to take part in the Europe-wide demonstration concerning the dairy crisis set for 22 June in Luxembourg.
ČTK

E15: Czech tourism to US rises
The number of Czechs heading to the United States will reach 70,000, up from last year’s 45,000, according to estimates by the Association of Tour Operators and Travel Agencies, while Student Agency confirmed a 25% rise in demand year on year. Reasons behind the increase include a relatively cheap dollar and the recent extension of the visa waiver programme to the Czech Republic, according to the travel agencies.
E15 12

Petrol stations to stop selling Speciál 91
Most Czech petrol stations will gradually cease offering the oldest type of petrol, the leaded Speciál 91 used in cars without catalytic converters. Sales of the fuel dropped to 1% of total petrol consumption in the country last year.
HN 18

Brownfields getting cheaper as demand falls
Many projects planned in former industrial locales have gotten stuck, mostly because of a lack of finance and no access to bank loans. Prices of brownfields are falling due to low demand, especially for large premises outside of Prague, according to King Sturge analyst Dušan Šťastník.
HN 19

Drugstores to expand
The dm drogerie chain plans to double its 155 Czech stores in the next few years. Rossmann wants to open 10 new outlets this year, and other players such as Schlecker and p.k. Solvent are planning to expand as well.
HN 15, 21

Biggest shoe stores up 2008 sales to record CZK 6.7bn
The top footwear shops increased sales by CZK 720 million to a record CZK 6.7 billion last year, according to a study by TextilŽurnál magazine. Baťa was on top, with sales of CZK 2.244 billion, a decline of 7% on the year. Second came Deichmann, with sales of CZK 1.634 billion, followed by Humanic, with CZK 1.048 billion.
ČTK

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