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Breakfast Brief – 5 May 2009

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Table of Contents

NEWS
HN: Senators to ratify Lisbon Treaty tomorrow
Hospodářské noviny reports, citing the head of the ODS Senators’ Club, Jiří Stříteský, that at least seven ODS senators will vote to ratify the Lisbon Treaty tomorrow. The seven, plus an additional 42 senators who had earlier said they would support ratification, make up a constitutional majority required to pass the treaty.
HN 1-3, LN 1, 4

EU, Japan to cooperate on new emissions-reduction deal
The EU-Japan summit in Prague yesterday, headed by Czech President Václav Klaus, agreed to prepare a new international document on reducing emissions that will replace the Kyoto Protocol at the Copenhagen conference in December. Environment Minister Martin Bursík said if President Václav Klaus chairs the EU Council, his anti-global-warming stance could harm the approval process.
most Czech press

Topolánek suggests Kalousek stay on as minister
Outgoing Prime Minister Mirek Topolánek yesterday proposed that Finance Minister Miroslav Kalousek remain in his post in the new cabinet, but the idea was quickly dismissed by ČSSD leader Jiří Paroubek. Caretaker Prime Minister Jan Fischer said politicians must first agree before he accepts the nomination. Fischer also agreed with the ČSSD nomination of Vladimír Tošovský for Industry and Trade Minister.
most Czech press

Cabinet endorses strategy to fight extremism
Prime Minister Mirek Topolánek’s outgoing cabinet yesterday endorsed an Interior Ministry strategy for fighting extremism. Part of the strategy involves setting up mobile courtrooms in places where extremists gather by the end of the year. Another part involves conducting an extensive survey on what young people think of neonazism and racism.
HN 4, Právo 3

Czech virologist: Swine flu not as aggressive as bird flu
Prominent Czech virologist Jitka Forstová said yesterday that based on the number of deaths so far swine flu does not appear to be as aggressive as bird flu. She added that the name “swine flu” is not accurate since the virus combines elements of swine, bird and human influenza. She advised people to wash their hands with soap and to wear a face mask on airplanes.
HN 5, ČTK

Lety to be turned into memorial
The Minister for Minorities and Human Rights, Michael Kocáb, said yesterday the cabinet has approved the establishment of a memorial at the former Roma concentration camp at Lety. A second camp, at Hodonín u Kunštátu, will be turned into an education and information centre on the Roma holocaust during the second world war. The decision left unresolved the problem of what to do about the pig farm that still operates at the Lety site.
Právo 1, 2, ČTK

Programme of voluntary departures for guest workers extended
The Interior Ministry has extended its programme of promoting voluntary departures of non-EU foreigners who lose their jobs. Outgoing Interior Minister Ivan Langer said yesterday a further 2,000 people could apply, though the financial benefit has been lowered from EUR 500 to EUR 400.
MfD B1

Czechs killed by avalanche deemed ‘careless’
The five Czechs and one Slovak who were killed in an avalanche in the Austrian Alps on Sunday behaved carelessly, according to the Austrian daily Kurier. The head of the rescue team, Ronald Ribis, said it was “unusual and also careless” for tourists at this time of year to remain on the side of a mountain in the afternoon.
ČTK

Entropa model on sale at Vienna art fair
A model of David Černý’s Entropa installation now on display at the European Parliament in Brussels will be offered for sale at the art fair in Vienna. The piece will be presented by a Bratislava-based gallery, Kressling, and cost EUR 85,000.
HN 3

Paralen to be sold by prescription at most pharmacies
The Czech Pharmaceutical Chamber has recommended pharmacies boycott a new system for storing prescription data that registers purchases of medications containing pseudoephedrine, such as Paralen plus, which can be used to make illegal drugs. The State Institute for Drug Control said pharmacies that boycott the system could pay a penalty of up to CZK 500,000. Medications will continue to be sold by prescription at most pharmacies.
HN 4, LN 5

Prague may eliminate hundreds of pedestrian crossings
The city of Prague may be forced to eliminate hundreds of pedestrian crossings due to a Transport Ministry regulation from 2006 that requires all such crossings over tram tracks to be equipped with traffic lights.
ČTK

BUSINESS
First-quarter deficit reaches CZK 55.7bn
The state budget deficit reached CZK 55.7 billion during the first quarter of 2009, exceeding the approved budget deficit for the entire year of CZK 38.1 billion. Reports say the deficit could reach CZK 150 billion this year.
most Czech press

EC: Czech economy to shrink 2.7% this year
The European Commission is now projecting the Czech economy will shrink by 2.7% this year because of the global economic crisis. The commission says GDP should begin growing again next year, by 0.3%.
most Czech press

ČR voted ‘most attractive’ by German companies
A survey by the German chambers of commerce (AHK) shows the Czech Republic remains the most attractive country for investors in central and eastern Europe. The Czech Republic has now placed first four times in a row.
ČTK

Law firms cutting salaries, laying off
Branches of international law firms operating on the Czech market, such as Nörr Stiefenhofer Lutz, Clifford Chance and White & Case, have begun laying off lawyers or cutting salaries, Hospodářské noviny writes. Another firm, Linklaters, withdrew from the Czech market a few months ago. Ondřej Peterka of Peterka & Partners says his company has stopped new hires and frozen pay raises.
HN 17

Companies to encourage restaurants to serve tap water
Czech water companies have launched a project to encourage restaurants to serve tap water to customers. The Veolia water company will start offering special water glasses. The quality of tap water in the Czech Republic is often better than bottled water, according to Miroslav Nováček, the head of the Brno water works and sewerage company.
LN 1, 6

Cabinet approves 3.5% pay raise for state employees
The outgoing cabinet of Mirek Topolánek yesterday approved a raise of 3.5% for state workers as of 1 June. The raise will affect some 500,000 people, with nearly half of them teachers. Others include medical workers, soldiers and the clergy. The measure will cost state coffers CZK 2.7bn.
most Czech press

Poles planning to sell stake in ATS
Poland’s one2one is planning to sell its stake in the biggest Czech provider of mobile phone-based voting and gaming systems, Advanced Telecom Services (ATS). Tomasz Dlugiewicz of one2one’s board said the Polish market is big enough for the time being. ATS head Michal Horák said one possible buyer is the Polish investment group MCI.
HN 13, 17

Kavalier Sázava glassworks up for sale
The Kavalier Sázava glassworks, the last operating plant of the bankrupt Bohemia Crystalex Trading group, is up for sale. The insolvency administrator has announced a tender to buy the company.
ČTK

Insurance premiums rise to CZK 36.9bn in Q1
Insurance companies collected some CZK 36.9 billion in premiums in the first quarter, a 4.4% increase year-on-year. Life insurance payments rose 6.6%, while non-life premiums fell 3.1%.
ČTK

ČR to pay CZK 27.2m for ČSA environmental damage
The outgoing cabinet yesterday approved a payment of CZK 27.2 million to clean up environmental damage caused by Czech Airlines at Prague Airport.
ČTK

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