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Breakfast Brief – 11 June 2009

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Table of Contents

NEWS
Demonstrators protest arrests of right-wing extremists
Some 70 people in Brno yesterday protested against a police crackdown Tuesday against right-wing extremism. The protesters marched into Příčná street chanting “Freedom”, “Resistance” and “Let brothers go home”. In Karlovy Vary, some 80 right-wing extremists fought with police to protest the arrests. Police on Tuesday arrested 10 men and charged them with attempting to suppress human rights and liberties. Hospodářské noviny reports the arrests were connected to an upcoming musical festival featuring bands close to the neo-Nazi movement that was organised by the Workers’ Party.
most Czech press

Source: Two former MPs met with Hamas
Czech Radio quotes an unnamed source as saying two former Czech ČSSD MPs, Jan Kavan and Vladimír Laštůvka, took part in talks with Hamas during an inter-parliamentary delegation visiting Gaza. The talks were reportedly attended by Italian MEP Luisa Morgantini. The source said Kavan was interested in meeting with Hamas for “business interests”. The EU considers Hamas to be a terrorist organisation. Kavan denies the allegations.
LN 1, 8

Constitutional Court rules in regulated-rent suit
The Constitutional Court yesterday ordered the Prague 1 City Court to reconsider a ruling in a lawsuit by the company Interdomus demanding compensation from the state over regulated rent. In the ruling, the Constitutional Court recognised the right of some landlords to specific compensation from the state.
LN 15, HN 3

Bill would require restaurants to indicate if they allow smoking
The lower chamber yesterday approved a bill that would require restaurants to indicate clearly whether or not they allow smoking. The law would come into force in July 2010 if approved by the upper chamber and signed by the president. MPs also rejected a proposal to reintroduce smoking on trains.
most Czech press

Former communists face prosecution for collectivisation
Olomouc state prosecutor Jaroslav Kouřil said a former communist official from the Šternberk region, Ladislav Nakládal, has been charged with participating in the forced agricultural collectivisation during communist times. Another three are being prosecuted for their part in the collectivisation and face 10 years in prison. Some 3,000 families were affected by collectivisation in the Czech Republic.
HN 1, 2, 3

Kalousek confirms new party’s name
Former Finance Minister Miroslav Kalousek yesterday confirmed the name of his new political party would be TOP 09. Kalousek will introduce the new centre-right party at a press conference today. He said he already has the thousands of signatures needed to register the party.
ČTK

KDU-ČSL to support some Fischer cabinet initiatives
KDU-ČSL MPs that remain in parliament after the recent departures of several party members have pledged to support some measures by Prime Minister Jan Fischer’s cabinet after meeting with the PM yesterday. The Christian Democrats said they will support a plan on military missions and a bill on secondary school leaving exams.
ČTK

Lower chamber rejects election bill
Communist and Social Democratic MPs yesterday voted to reject a proposed change to the election law that would have introduced a so-called bonus for the winning party. The early elections planned later this year thus will take place under the same rules as the last parliamentary elections.
ČTK

Two new cases of swine flu confirmed
Two new cases of swine flu have been confirmed in the Czech Republic. A man and a woman from Prague who arrived from the United States last week sought medical treatment because they felt unwell. The tests confirmed infection by the H1N1 virus and both are now in home isolation.
MfD A4

Nearly 700 Czechs in jail or under arrest around the world
The Foreign Ministry said that as of December 2008 there were 689 Czechs who were either in prison or under arrest around the world. The ministry said 75 were being held on drug charges. Foreign Minister Jan Kohout called the numbers alarming.
ČTK

BUSINESS
Parliament approves bill enabling state takeover of troubled banks
The lower chamber yesterday approved a bill that would allow the state to take over struggling banks amid the ongoing economic crisis. The bill would simplify the process for banks to raise capital and give the central bank more flexibility to react to problems. The bill now goes to the Senate.
ČTK

UK aiding Austrians in Gripen investigation
British authorities are assisting in an Austrian investigation into suspected corruption in the Czech purchase of Swedish Gripen fighter aircraft. UK police have passed along a fax in which an Austrian lobbyist allegedly asks the British arms maker BAE Systems for money to bribe influential Czechs. BAE Systems controls production of the Gripens. The Austrian investigation is expected to be completed in weeks or months.
Aktuálně.cz

Lower house passes new traffic laws
The lower house yesterday passed a package of new traffic laws, including a measure to scrap highway stickers by 2011 and replace them with transferable electronic chips and a plan to impose a highway toll on all vehicles over 3.5 tonnes as of next year. Reports said the new electronic chips could cost the transport fund an estimated CZK 1.5 billion. On the new tolls, the Transport Ministry said it had not yet determined the amounts, but DHL and other companies said they would incorporate them into their prices.
HN 1, 5, E15 8

J&T and Severočeské doly take over Mibrag
J&T and Severočeské doly from the ČEZ concern have completed their EUR 404 million takeover of German mining company Mibrag after the acquisition was approved by the European Commission in May. The two companies now hold a 100% stake in mines that produce 19 million tonnes of coal a year.
Euro.cz, Právo 14

J&T, PPF joint venture to sell meat producers
A joint venture between J&T and PPF, EPH – Energy and industry holding, has offered its meat-producing companies up for sale. The estimated value of the companies is CZK 1 billion, according to an unnamed source quoted by Hospodářské noviny. Penta Investments said it had information that an offer had already been made to Denmark’s leading pork processor, Danish Crown.
HN 1, 13

Bursík: ČEZ would gain CZK 68bn from free carbon credits
Green Party head Martin Bursík said a plan by the former industry and trade minister, Martin Říman (ODS), and Milan Urban (ČSSD) to disburse some carbon credits for free would effectively give ČEZ a gift of CZK 68 billion. He was speaking to lawmakers yesterday.
HN 14

Office, residential complex planned for Žižkov freight yard
The CCZ company of the British investment and development group Discovery plans to break ground on a new EUR 150 million office and residential complex at the former freight station in Žižkov next spring. Discovery owns almost 13 hectares of land in the area and will build 250 flats.
E15 12

Online shops expecting 20% increase in revenue
Executive director of the association for electronic commerce (APEK), Jan Vetyška, said revenue from online shopping is expected to grow 20% to some CZK 27 billion this year in spite of the economic crisis. He said the crisis is reflected in the fact that the average order size is lower.
ČTK

Bill would ease restrictions on building savings accounts
A ČSSD- and KSČM-sponsored bill approved yesterday by the lower house would ease restrictions on using building savings accounts. Currently, the funds can only be used to pay costs related to housing, but in the future holders may be able to use the money to pay for financial fees, food and costs related to education. The Association of Czech Building Savings Banks welcomed the proposal.
most Czech press

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