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Breakfast Brief – 14 April 2009

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Table of Contents

NEWS
Kohout considered as foreign minister, Pejchal head of justice
The Social Democrats will propose that current Deputy Foreign Minister Jan Kohout become foreign minister in Jan Fischer’s caretaker cabinet, party leader Jiří Paroubek said Saturday. Hospodářské noviny reports that one of two candidates to head the Justice Ministry is lawyer Aleš Pejchal, who is close to President Václav Klaus and who shares Klaus’s negative stance on the Lisbon Treaty.
HN 1, 2, LN 2

ČSSD wants to increase social bonuses
The ČSSD election platform is promising an increase in social bonuses that would cost tens of billions of crowns. ČSSD wants to raise the birth allowance from CZK 13,000 to CZK 20,000 for the first child, extend sick leave to cover the first three days of illness, and raise the parenting bonus to above the average wage. ODS Labour Minister Petr Nečas warns the steps could lead to the collapse of the public budget.
HN 1, 3

Prague gets record-hot weekend
The air temperature in Prague’s centre on Saturday climbed to 23.3 degrees Celsius, the highest 11 April figure since record-keeping began in 1781 at the Klementinum.
MfD A1, A4, Právo 1, 3

Rath to harass judge for ruling on medical fees
Notices to be posted at public pharmacies in Central Bohemia will disclose the name and phone number of a Prague Municipal Court judge who recently banned the regional government from covering patients’ CZK 30 prescription fees, governor David Rath said Friday. A court spokesman rejected the move as “bordering on bullying judges”. In retaliation, the party Liberálové.cz published Rath’s mobile phone number on its website and on the social networking site Facebook.
most Czech press

Klaus pardons 11, including 5 foreigners
The president on Friday pardoned 11 convicts, including five foreigners who were facing deportation. Klaus said they had lived in the country a long time and had family ties here.
most Czech press

Rath, Paroubek want ‘blob’ in Central Bohemia
Central Bohemian Governor David Rath would like to build Jan Kaplický’s controversial National Library building somewhere in his region, mentioning possible sites near Prague Airport, Kladno or Příbram. He said he would like the building to be part of a new university campus. ČSSD leader Jiří Paroubek said the library would be one of his party’s goals if it wins early elections later this year.
most Czech press

Ďuričko sentenced to 12.5 years
Hotelier Bohumír Ďuričko was sentenced to 12.5 years in prison on Friday for killing Václav Kočka Jr at the launch party for ČSSD leader Jiří Paroubek’s book in October. Ďuričko will serve his sentence at a maximum-security facility. Judge Eva Brázdilová said Ďuričko neither took responsibility nor showed regret for the act.
most Czech press

Lithuanian president: Klaus will sign Lisbon Treaty
Lithuanian President Valdas Adamkus told Právo on Saturday he is convinced President Václav Klaus will sign the Lisbon Treaty. Adamkus met Klaus on Thursday. Adamkus also said the Czech EU presidency was very well organised, showing that even a small country can run the EU.
Právo 3 Sat

Most Czechs feel ČR has too many foreigners
A recent CVVM poll shows that 57% of Czechs think there are too many foreigners living in the Czech Republic; 19% believe the country should not accept any refugees.
ČTK

Patients may have to pay for Czech HIV medication
The HIV medication Viread, developed by Czech scientist Antonín Holý, could become too expensive for Czech patients. The medication is currently covered by health insurance but was recently re-evaluated by the State Institute for Drug Control, who ruled patients should have to cover the costs themselves. The cost would be CZK 8,783 per package. The decision has not yet taken effect.
Právo 1, 4 Sat

Court backs state in Roma segregation case
Prague City Court on Friday turned down a complaint filed by a Roma man who says he was sent to a special school because of racial reasons. The plaintiff had demanded an apology and CZK 500,000 in damages from the Education Ministry.
Právo 9 Sat, ČTK

ČSA flight to Mexico returns over defect
A Czech Airlines flight from Prague to Cancún with 193 holidaymakers onboard returned to Prague after unusual readings on fuel indicators were detected over the North Sea.
ČTK

BUSINESS
Leaders differ on car-scrapping bonus
Outgoing PM Mirek Topolánek told MfD that the Czech Republic will not introduce a car-scrapping bonus this year because Czech carmakers do not need it. Social Democrat leader Jiří Paroubek later told TV station Prima that his party insists that the incentive be introduced this autumn.
MfD A12 Sat, ČTK

Experts: PKN Orlen unlikely to sell stake to Lukoil
Oil experts cited by Hospodářské noviny say PKN Orlen, a Polish company that controls the refinery Česká rafinérská, would probably not sell a majority stake in the refinery to Russia’s Lukoil. Igor Chalupec, PKN Orlen’s head until 2007, said the company did not need to sell.
HN 15, 19

President signs bill to raise funds for Latvia
President Václav Klaus has signed into law a bill allowing the government to issue bonds worth EUR 200 million, which the Czech Republic in turn will lend to Latvia to help that country cope with the global economic crisis.
ČTK

ČEZ will subsidise white goods purchases
Power producer ČEZ will offer a CZK 1,000 bonus to customers who buy a new fridge or a washing machine. The credit will only be available at Datart and Euronics shops, a fact criticised by competitor Electro World.
MfD A1, A8 Sat, Právo 2 Sat, ČTK

Sazka to strengthen betting operations
The head of Sazka, Aleš Hušák, told HN the company plans to expand from running the national lottery to become the market leader in odds betting within three years, supplanting Tipsport. Sazka is reportedly planning to partner with an undisclosed foreign company.
HN 1, 15

Burger King to open 2nd outlet in Prague
Fast-food eatery Burger King will open its second Czech restaurant, in Prague’s Letňany shopping mall, according to the business information website Podnikatel.cz.
Podnikatel.cz

PFČP profit shrinks to a fraction
The largest Czech commercial pension fund, run by top insurer Česká pojišťovna, made a profit last year of CZK 81 million, down from CZK 939m a year earlier. All Czech pension funds together saw profits slump from CZK 4.39bn to CZK 706m.
ČTK

Number of mortgage brokers to decline
Milan Roček, the head of Hyposervis, estimates that the number of mortgage brokers will fall from 40,000 last year to 5-6,000 this year due to lower demand and stricter requirements. A spokesman for GE Money Bank said the bank has dismissed all of its external brokers and will only offer mortgages through their own distribution network.
MfD A9 Sat

Patch kits will replace spares in Škodas
Škoda cars made from late May 2009 will no longer come with spare tires but only puncture-repair kits. The carmaker says this is possible under new regulations and that other European carmakers will be making the move, motivated mainly by efforts to reduce car weight and emissions.
ČTK

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