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Breakfast Brief – 22 April 2009

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Table of Contents

NEWS
Canada wants ČR to stop mass Roma migration
The Canadian embassy in Prague has asked the Czech government to crack down on those who arrange the migration of Czech Roma to Canada, where they seek asylum. Lidové noviny reported that some Czechoslovak expatriates in Canada might be involved in the mass migration, which the paper describes as well-organised and economically motivated.
LN 1, 3, ČTK

Govt crisis boosts Klaus’s role in EU
Czech President Václav Klaus will preside over an EU-Korea summit in May instead of interim PM Jan Fischer, outgoing PM Mirek Topolánek said yesterday. The government said earlier that Klaus would also chair an EU-Russia summit next month.
ČTK

Subsidies available for energy-saving house improvements
As of today the Environment Ministry has begun accepting applications for state subsidies to install new energy-saving insulation, boilers and solar panels. The ministry plans to distribute CZK 10 billion this year and 15 billion in the future. The subsidies can cover up to half the cost of the work and several banks, including Česká spořitelna, ČSOB, Komerční banka, UniCredit Bank and LBBW Bank, are offering special loans. Minister Martin Bursík said the installation work must be done by certified companies using good-quality material.
most Czech press

Havel speaks on reconciliation with ODS
Former president Václav Havel said yesterday that he would “wear no party’s T-shirt (and if I do it will be greenish)” in the autumn early general elections, but that he might “make public statements” to support something he finds reasonable. Havel earlier expressed sympathy for the Civic Democrats (ODS) and criticised the opposition Social Democrats for toppling the Topolánek government, prompting speculation that he could back the ODS.
ČTK

Police arrest head of Armenian mafia in ČR
Czech police said yesterday they arrested the boss of the Armenian mafia and his closest collaborator in March. The 41-year-old man is allegedly responsible for plotting two murders in Prague that in both cases resulted in killing the wrong person. The man was apparently living in the Czech Republic legally with his family. He now faces possible life imprisonment.
HN 4, Právo 5

Goalie Hašek signs with Pardubice
Goalkeeper Dominik Hašek, 44, a two-time Stanley Cup winner and gold medalist from the Nagano Olympic Games, has signed a one-year contract with the Czech elite league’s Pardubice club, where he started his career. This is Hašek’s fourth comeback attempt.
most Czech press

ID cards needed to buy flu meds
The State Institute for Drug Control has announced that as of May medications containing pseudoephedrine, found in many cold and flu medicines, will only be sold on presentation of a valid ID card or health insurance card. Pseudoephedrine is a common ingredient for making illegal methamphetamines. Patients will only be allowed to buy a maximum of 60 pills a month.
Právo 1, 8

Sex survey: Czechs becoming more faithful
According to the most recent survey of sexual behaviour of Czechs conducted by the Sexuological Institute of Charles University, fewer Czechs, 55% of men and 34% of women, admitted to having extramarital affairs. The survey found that Czechs on average have intercourse twice a week, with each time lasting 30 minutes, including foreplay. Compared with previous surveys, the average number of sexual partners remains the same, with men saying they have had nine partners and women five.
most Czech press

ODS marks 18th birthday
The Civic Democratic Party celebrated its 18th year in existence yesterday at the party’s Prague offices on Jánský vršek. Party founder and long-time chairman, President Václav Klaus, did not attend due to a busy schedule, the president’s spokesman said.
most Czech press

Charles University cancels former KKK leader’s lecture
David Duke, a former leader of the Ku Klux Klan, was to deliver three lectures in Prague and Brno. One of the hosts, Charles University in Prague, has cancelled the event.
most Czech press

Auditors find chaos in church funding
The Culture Ministry had no control in 2006 and 2007 over the way that churches spent public funding, the Supreme Audit Office has found out. The office says the law governing the funding of churches is outdated.
ČTK

Poll: ODS catching up with ČSSD
A STEM survey shows that 23% of Czechs are ready to back the Social Democrats (ČSSD) and 21% the Civic Democrats (ODS) in the European Parliament elections in June. The Communists are trusted by 11%.
ČTK

BUSINESS
Čunek wants regulators to cut electricity rates
Christian Democrat leader Jiří Čunek has asked interim PM Jan Fischer to enforce a cut in electricity prices by up to 15%. Čunek also wants to boost state coffers by forcing ČEZ, in which the state holds a 70% stake, to pay out all of its profit in dividends instead of the planned 56%. Outgoing Finance Minister Miroslav Kalousek said yesterday his office is proposing to abolish share bonuses for new ČEZ managers at the general assembly in May, while current managers would not be affected by the measure.
most Czech press

Banks reluctant to lend for weekend houses
Česká spořitelna has stopped offering 100% loans for buying weekend homes and now offers loans for just 70% of a property’s value up to CZK 2 million. ČS’s Martin Techman said the bank is focusing on residential property since it is easier for clients to stop covering other loans if they get into trouble. Wüstenrot requires 30% to be covered by the client and Raiffeisenbank now lends a maximum of 75% instead of 85% to non-clients. Regina Szpyrcová from the real estate agency Sting said only 30% of the firm’s clients pay cash for weekend houses.
HN 15, 16

Loans more difficult to recover; debt collectors adopting new tactics
Demand for debt-recovery services is growing as more Czechs are having problems paying off debts. Radek Laštovička, the director of Coface Czech, said he has had to hire more collectors to cope with the higher demand, which has grown 50% over the last year. Hynek Filip of DebtAid said the volume of recovered consumer loans has dropped by half since 2008. Debt collectors have to use more aggressive methods like visiting debtors at their workplaces.
HN 1, 15

Updated recession outlooks posted
ING Bank ČR expects the Czech economy will contract by 3.7% this year and the public deficit will amount to CZK 170-180 billion. A draft central bank prognosis expects GDP to shrink 1-2%, more than the 0.3% drop the bank forecast earlier. Finance Minister Miroslav Kalousek told a financial forum yesterday this year’s contraction should not exceed 2% and the Czech economy should grow by up to 0.5% next year.
most Czech press

ČR doubles wine production in 2008
Czech vintners last year almost doubled production to a record 820,000 hectolitres, says an Agriculture Ministry report. The boost came from new vineyards planted four years ago. Czech vineyards now cover some 17,000 hectares, up from just over 11,000 ha in 2000.
Právo 14

Bendl wants more funding for local rail
Regional governments will receive up to CZK 1.2 billion a year from the state budget starting next year to fund local rail transport, Transport Minister Petr Bendl said yesterday. The sum would cover some 20% of the subsidies the regional governments currently pay to operators.
E15 1, 8, Právo 5

RWE earns less despite higher sales
The largest Czech natural gas importer, RWE Transgas, last year saw its net profit slump 22% to CZK 10 billion despite a 38% growth in sales to CZK 109bn. The whole RWE energy group boosted Czech revenue 32% to CZK 125 billion, but profits dropped 8% to CZK 14.8 billion.
most Czech press

Zeman: Subsidise investment, business
Former PM Miloš Zeman told yesterday’s financial forum that both ODS’s proposal to cut taxes and ČSSD’s proposal to support consumption would unnecessarily increase the public deficit. Instead, Zeman wants the government to support investment and help businesses win orders.
ČTK

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