Breakfast Brief – 11 September 2009

NEWS
Constitutional Court rules for Melčák, postpones elections
The Constitutional Court ruled yesterday in favour of MP Miloš Melčák’s complaint against the one-off law shortening the Chamber of Deputies’ term, likely postponing early elections until November. It is the first time the court has abolished a so-called constitutional law passed by three-fifths of deputies. Tomáš Langášek, the court’s general secretary, said the measure was extralegal because it concerned only the lower house. President Václav Klaus said the court “willingly and intentionally deepened the political crisis” and should have its powers curbed.
Source: most Czech press

HN: Senate might be budget’s last chance
Hospodářské noviny writes that yesterday’s Constitutional Court decision delaying early elections might enable approval of Finance Minister Eduard Janota’s budget proposal. The ruling allows more time for the Senate – which will have jurisdiction if the lower house disbands as expected – to act on the budget. Right-wing parties ODS and TOP 09, which are more likely to back the Janota plan, have a comfortable majority in the Senate. The current cabinet is to finalise the spending measure on Wednesday.
Source: most Czech press

Liechtenstein bank data might be useless
Czech Tax Administration head Jan Knížek said the agency cannot use records held by German police on Czech citizens’ Liechtenstein bank accounts because the data is seven years old and the tax authority can only investigate suspected evasion going back three years. Knížek said he believes some of the owners have maintained the same accounts, making them traceable. The records were stolen by an employee of Liechtenstein bank LGT who sold them to German authorities.
Source: most Czech press

Fight in Prague centre leads to shoot-out
Gunfire broke out on Prague’s Na Příkopě street yesterday as a result of an altercation involving a five foreigners. Police found five cartridge cases on the spot, but there were no injuries. After the shoot-out four of the men ran away; the other got into a car and drove off but was later apprehended.
Source: MfD A1, B1, B3, Pd 4

Dalai Lama: West should help China activists
Visiting Prague for the annual Forum 2000 conference, the Dalai Lama said the West should do more to support pro-democracy activists in China. The Chinese Embassy in Prague is protesting the appearance of the Dalai Lama and Uighur exile Rebiya Kadeer, who will also speak at the conference, saying that “problems will arise in the relations with the Czech Republic”.
Source: most Czech press

MPs approve airline data sharing with US, Australia
The lower house yesterday approved a security agreement under which EU airlines will provide data on passengers travelling to the US and Australia to authorities in those countries. The pact is valid until 2014.
Source: ČTK

Janota: Government short of vaccine funding
Finance Minister Eduard Janota said the government is seeking CZK 220 million to secure vaccines for infant diseases this year. The Health Ministry had counted on health insurance covering the inoculations but the Chamber of Deputies failed to pass the necessary reform.
Source: ČTK

Higher ed spending boosted
Following a meeting yesterday with PM Jan Fischer, rectors at Czech institutes of higher education said the schools will receive CZK 1 billion more from the state next year than initially proposed. Even with the increase, subsidies per student will be 25% less than in 2007.
Source: Právo 8, HN 5

Scientists demand new science, education reform
Several prominent Czech scientists have launched a petition drive aimed at overturning reforms in higher education and of research and development. Critics say the reforms did not receive a thorough public hearing and favour business interests. The signatories also call for replacement of the current members of the Council for Research and Development.
Source: ČTK

Remains of Romanesque house uncovered near Castle
Archaeologists exploring Salmov Palace on Prague’s Hradčanské náměstí in connection with a planned reconstruction have discovered the skeleton of a 12th -century house. It is the second Romanesque find at the Prague castle since 1944.
Source: ČTK, MfD B2, Právo 10

Diamond Race participants sue Plzeň’s mayor
Contestants in the unofficial Diamond Race, in which high speed sports cars compete on Czech roads, filed a defamation complaint against Plzeň Mayor Jiří Struček for calling the race illegal and advising the local Domino children’s home to refuse a CZK 200,000 from participants.
Source: ČTK

Prosecutor gets two years for leak
Prague Supreme Court yesterday sentenced a state attorney, Eva Leblová, to two years in prison suspended for four years for disclosing confidential information about an investigation. In 2003 Leblová told her boyfriend about a planned raid on a suspected car theft ring, putting the probe at risk.
Source: ČTK

Prague Botanical Garden opens own wine cellar
The Prague Botanical Garden has opened a wine cellar where the produce of nearby vineyard Vinice sv. Kláry will be aged and offered for tasting. The CZK 12 million facility will also host an exposition on wine-production.
Source: ČTK

BUSINESS
Orco unveils restructuring plan to creditors
Property developer Orco has presented creditors with the terms of its draft restructuring plan, offering bondholders new bonds with a later maturity date and new shares. Bondholders will vote on the proposal on 24 September in Paris.
Source: HN 27, LN 14

Refinery cancels contract with pipeline operator
Oil refiner Česká rafinérská annulled its partnership with MERO, the owner and operator of the country’s two crude oil pipelines, saying oil transport fees are too high. Česká rafinérská spokesman Aleš Soukup said the company will discuss new tariffs with MERO.
Source: most Czech press

Banks making mortgages more accessible
Starting this autumn, banks will begin offering lower mortgage interest rates, in some cases under 5%, and eliminating fees in an effort to make up for this year’s decline in housing loans.
Source: LN 14

UniCredit targets small clients
UniCredit Bank wants to boost the share of its profits generated by personal banking services to 35% to 40% in the next three to five years. Director Jiří Kunert said the bank is looking to expand mortgage services and credit cards. “The population will get richer, that’s why it makes sense to head this way,” he said.
Source: E15 1, 10

Carmakers expect sales drop of up to 10%
Domestic car producers and their suppliers expect the recession to trim this year’s vehicle sales by as much as 10% from 2008’s total of CZK 605 billion.
Source: ČTK