NEWS
Govt handover boosts EU fears of Klaus
Former Prime Minister Mirek Topolánek said Friday that he and all EU leaders believe new interim PM Jan Fischer should oversee the remainder of the Czech EU presidency, not President Václav Klaus. Topolánek was responding to reports that staunch Eurosceptic Klaus might chair a key Brussels summit next month. Klaus on Friday appointed Fischer’s caretaker cabinet, noting that it was the country’s fifth change of government in six years and expressing concerns about political stability.
LN 1, 3 Sat, Právo 1, 2 Sat, ČTK
EU pushes Nabucco project in Prague talks
Talks between Turkey and the EU on the planned Nabucco gas line from central Asia to Europe have advanced significantly, Václav Bartuška, Czech ambassador at large for energy security, confirmed Friday following an EU energy summit in Prague.
most press Sat
ČSSD senator: Klaus should sign Lisbon or quit
Senate First Vice-President Alena Gajdůšková (ČSSD) told Týden.cz that if President Václav Klaus ignores the decision of Parliament and blocks ratification of the Lisbon Treaty he should either resign or be dismissed. She said such an action on Klaus’s part would violate Czech democracy. The Constitution allows for removal of the president in case of treason.
HN 1, 3
EU boosts ties with six post-Soviet states
On Thursday in Prague, the EU signed a partnership agreement with Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. The EU will help the countries with political, economic and social reforms needed to strengthen ties with the union. President Václav Klaus said the partnership must be a path to EU membership, not an alternative to it, saying the EU must not become “a closed, privileged club.” Outgoing Deputy PM Alexandr Vondra criticised member states that did not send their top leaders to the summit, including France and the UK.
LN 1, 3 Sat, Právo 4 Sat, ČTK
EU will more than double Czechs’ pay
Czech MEPs elected in June will earn CZK 185,000 per month instead of the current CZK 86,500 thanks to a new regulation under which MEPs from all countries will be paid EUR 7,000 per month from the EU budget. At present MEPs are paid by their national governments. The increase must still be approved by the Czech Chamber of Deputies.
Právo 1, 2
Officers accused of bribing visa applicants
Two foreign police officers in Cheb were arrested last week on suspicion of taking bribes from visa applicants.
Právo 10 Sat
BUSINESS
Central bank cuts interest rates to all-time low
The Czech National Bank on Thursday cut the benchmark interest rate from 1.75% to 1.5%, the lowest level since Czechoslovakia’s partition. The European Central Bank cut the main eurozone rate from 1.25% to a record low 1%, while the Bank of England left the UK’s rate at 0.5%.
most Czech press
Car sales, cheap gas fuel surprise trade surplus
Czech foreign trade in March showed a surplus of CZK 23.4 billion, almost double the figure for March 2008. Exports declined by 6.3% year-on-year while imports were down 13.5%. Analysts called the result shocking and attributed it to a recovery of Czech car sales in Germany and other European countries that are offering old-car-scrapping bonuses, and to cheaper natural gas imports. The Czech Industry Confederation and some analysts warned that the recovery might be temporary.
ČTK
ČNB, EBRD downgrade recession prognoses
The Czech National Bank expects Czech GDP will contract by 2.4% this year and show 1.4% growth next year. The EBRD predicts the Czech and the Slovak economies will drop by 3.5%. Both banks predicted much better figures earlier this year.
ČTK, HN 23
Fischer reluctant to close ecological damages tender
Newly appointed Prime Minister Jan Fischer is reluctant to finalise the government tender for elimination of ecological damage wrought by past industry. Fischer said he wants to avoid possible suspicion of corruption. New Finance Minister Eduard Janota said both ČSSD and ODS would like Fischer’s cabinet to close the tender. Three bidders who did not succeed in the first round of the tender will appeal the Finance Ministry’s decision, Hospodářské noviny reports.
most Czech press
HN: ČR loses billions on fuel tax evasion
Big oil companies estimate the state loses some CZK 4 billion every year through tax evasion by middlemen who obtain low-quality fuel by unknown means then sell it to petrol stations. According to Hospodářské noviny, the company selling the fuel declares bankruptcy, claiming it owes fines abroad, in order to avoid paying VAT; a new company is then established to continue the business. Police and finance and customs officials are investigating dozens of such cases.
HN 1, 15
State signs settlement with ArcelorMittal
On his last day in office Thursday, Finance Minister Miroslav Kalousek signed an agreement with ArcelorMittal, under which the firm will withdraw lawsuits seeking a total of CZK 30 billion from the state. In return the government will sell the steel giant a 10.9% stake in ArcelorMittal Ostrava for just under CZK 7 billion, boosting ArcelorMittal’s control to 82.5%.
HN 18, MfD A8 Sat
Bank governor sees Czech crown firming this year
Czech National Bank Governor Zdeněk Tůma said Thursday that he expects the Czech currency to make up its recent losses then stabilise. Tůma predicted an average euro exchange rate CZK 26.60 this year and 25.90 in 2010.
ČTK
KB earnings shrink 7.5% in Q1
Komerční banka netted CZK 2.8 billion in the first quarter, 7.5% less than a year earlier but a better result than most analysts expected.
ČTK
Sazka’s profits resume growth
Net profits at top Czech lottery Sazka shrank 11.3% last year to CZK 1.3 billion. Profits in the first quarter of 2009 grew 7.8% year-on-year to CZK 400 million on revenue of CZK 2.63 billion, a 14.3% rise.
HN 17, ČTK
Crunch hurts T-Mobile’s ČR sales
T-Mobile’s first-quarter sales dropped 4.4% to CZK 7.6 billion despite increasing its client base by 138,000 to 5.41 million. The firm blames the decline on the economic downturn.
ČTK
Half of homes are sold without realtor
About 50% of Czech home purchases are made without the assistance of an agency, says Jaroslav Novotný, head of a Czech realtors’ association.
ČTK
Blesk remains top daily, Impuls highest rated radio
The tabloid Blesk remains the most popular Czech daily newspaper, with an average circulation from October to March of 1.4 million. Mladá fronta Dnes ranked second with 1 million readers, followed by Právo with 423,000. Impuls is the most popular radio station with some 1.13 million listeners per day, followed by Evropa 2 (958,000) and Frekvence 1 (932,000). Public Czech Radio channels have a combined 1.77 million listeners.
ČTK
Utility E.ON launches e-billing in ČR
Czech clients of power and gas distributor E.ON can now choose to receive electronic bills and pay online.
ČTK
Tyco sees tough year, Denso expanding
Kuřim-based car part supplier Tyco Electronics last year increased net profits by 4.6% to CZK 251.6 billion. This year the firm expects no profit due to the contraction of the automotive market. A Liberec-based branch of Denso plans to expand production of car air conditioners, creating 600 new jobs.
ČTK
Metrostav announces CZK 21.5 dividend
Builder Metrostav will pay dividends worth CZK 170 million, or CZK 21.5 per share.
ČTK
