NEWS
Senate takes cuts to staff and spending
The Finance Ministry and the Czech senate have agreed to cut the upper house’s spending and staff over the next three years in a bid to reduce public spending and curb the budget deficit. It is unclear if the Chamber of Deputies will take a similar budget cut.
Source: ČTK
Paroubek: We will govern without Communists
Social Democrat (ČSSD) leader Jiří Paroubek yesterday announced his party would not form a coalition cabinet with the Communists after the elections. He did not comment on whether he might lead a minority single-party cabinet backed by the Communists in parliament.
Source: Právo 2
Communists seek tax alternatives
Deputy chairman Jiří Dolejš said yesterday the Communist Party opposed Finance Minister Eduard Janota’s proposal to curb budget deficit by cutting public spending and increasing VAT and the fuel tax. Dolejš instead called for major tax reform to reintroduce progressive tax on personal income and tax corporations’ revenue rather than profits. In contrast, TOP 09 asked for all parties to accept Janota’s September budget then draw up an alternative for 2010. Party founder, Miroslav Kalousek said this was no time for experiments and ideological stubbornness.
Source: ČTK, HN 2, LN 13
Social dem leader lashes out at Havel
In a letter to Václav Havel yesterday, Lubomír Zaorálek, the deputy chair of the Social Democrats (ČSSD) accuses the former president of contributing to a US-led campaign against Russia. Zaorálek criticised Havel’s endorsement of Mirek Topolánek’s policies, saying they made ČR a footnote in US history.
Source: LN 1, 4, Právo 3
Police arrest Serbian fans after Prague bar brawl
Police last night detained about 150 fans of Belgrade football club Crvena Zvezda who toppled tables and threw beer mugs at restaurant-goers and police in downtown Prague. A spokesman for Slavia Praha said the club had done everything to ensure match security, including checking passports and ID cards during ticket sales. Slavia won 3:0.
Source: most Czech press
Racism charges dropped against singer
Police have abandoned an investigation of singer Aleš Brichta over his song Deratizér (Exterminator), saying there are no grounds for prosecution. The song’s chorus translates: “Politicians are making fools of everyone / Gypsies steal bikes in the streets / It’s high time it was sorted out / by an exterminator.” Brichta said his song targeted politicians, not Roma.
Source: ČTK
Nova: New arrest warrant for Matoulek
A court has ordered the arrest of Josef Matoulek, who failed to report to start an eight-year sentence for embezzlement occurring in the 1990s at now defunct investment firm CS Fondy, TV station Nova reported last night.
Source: ČTK
Greens seek grassroots funding
The Greens have appealed to voters on their website for financial support of the party’s election campaign. Leader Ondřej Liška says his party does not want to yield to big sponsors, lobbyists and business groups as he claims other parties have done. “But there’s one catch: we don’t have that much money,” he added.
Source: ČTK
New Klaus book attacks environmentalists
In his latest book, Modrá planeta v ohrožení (Blue Planet in Danger), President Václav Klaus targets environmentalists and politicians, attacking their global warming “alarmism”. “Ecologists say the planet must be saved. Saved from what? From whom? I know one thing for sure: We must save it – and us – from them,” Klaus writes. The book signing will take place next Friday.
Source: MfD A1, A4
Survey: Fewer jobs for finance grads
New graduates will find it hardest to secure work in the finance sector as well as machinery and catering services, according to a survey by the National Institution of Technical and Vocational Education at state employment centres. Demand for new medics, civil engineers and teachers will remain largely unaffected by the recession.
Source: ČTK
BUSINESS
Ministers back ČSA sale under Lašák
Finance Minister Eduard Janota and Transport Minister Gustáv Slamečka yesterday agreed to proceed with privatising Czech Airlines under current CEO Radomír Lašák. 30 September remains the deadline for final bids. The Ministers’ statement followed speculation some politicians wanted Lašák replaced after Air France-KLM withdrew from the tender on Wednesday. The sole remaining bidder is the consortium of Unimex and Travel Service. “There’s no longer really any competition,” said Cyrrus analyst Jan Procházka.
Source: most Czech press
Govt would subsidise part-time workers
The Labour Ministry wants to change the law to allow companies to cut the work week of some employees to four days while the state pays them a supplement. The plan, unveiled after a meeting with union leaders, should help employers to keep trained staff in tough economic times and also curb unemployment. The new system would not take effect before mid-2010.
Source: HN 1, 2, 3
Insurer rejects same rates for foreigners
PVZP ČR, a subsidiary of VZP, the largest public health insurer, has rejected a plan to harmonise insurance conditions for foreigners working in ČR with those of Czechs. The insurer said that the proposal would harm national solidarity under the public health care system.
Source: LN 14
Shareholders protest plans of Ostrava steel firm
Minority shareholders of ArcelorMittal Ostrava yesterday voiced their opposition to the steel giant’s decision to use its own shares as loan collateral. The opponents fear parent company, ArcelorMittal, will use the scheme to pump funds away from its Ostrava plant.
Source: most Czech press
Ústí governor opposes new ČEZ plant
Deputy governor of Ústí nad Labem Arno Fišera (ČSSD) said yesterday the regional government opposed ČEZ’s plans to build a 440 MW combined cycle power plant in Počerady. Fišera voiced concerns the plant will increase air pollution, adding ČEZ must close down a facility elsewhere in the region before building a new one.
Source: ČTK
Experts knock water transport budget
The proposed 2010 state budget, which sets aside CZK 2.27 billion for water transport, twice the current allowance, has attracted criticism from experts, calling some proposed projects useless. The head of the State Fund for Transport Infrastructure, Jaroslav Krauter, said that only EU- funded, not state-funded, projects will go through.
Source:MfD A8
Bernard beer sales up despite crunch
Representatives of family brewery Bernard say a general downturn in beer production in H1 has not affected microbreweries, which are reporting growing sales. Bernard’s non-pasteurised beer production grew by 5% and its non-alcoholic beer sales were up by 15.3% in the period. H1 revenues grew 8% year-on-year to CZK 168 million. National beer production fell by 6.8%, about 1% more than expected.
Source: E15 9
Banks going easier on debtors
In a move to address rising numbers of unpaid loans and raise stock value, banks are relaxing conditions on some debtors. Policy changes include assessing clients individually and distinguishing serial non-payers from clients unable to meet loans due for specific reasons.
Source: E15 1, 8
Škoda Auto slashes Octavia Tour prices
Czech carmaker Škoda Auto yesterday lowered the price of its Octavia Tour Trumf model by up to CZK 230,000. The company said the change was inspired by increased demand for Octavia Tour Sun following similar price cuts.
Source: HN 19
Rail company will sack 500 this year
The Rail Infrastructure Administration (SŽDC) has announced it will go ahead with about 500 redundancies by the end of the year. The state-run firm, which owns and maintains railways, has about 10,300 staff.
Source: ČTK
Hreha is new ČTK chief
Radim Hreha, former director of Slovak Television, will replace Czech News Agency’s (ČTK) retiring general director Milan Stibral from this October. The news server’s governing board yesterday selected Hreha from five candidates.
Source: MfD A5, ČTK
