NEWS
Floods cause 11 deaths, millions in damages
The floods sweeping through the northern part of Moravia have claimed at least 11 lives and caused damages totalling hundreds of millions of crowns. Road damage just in the Valašské Meziříčí area is estimated to reach CZK 30 million. The state has set aside CZK 99 million for repair works; the region has promised CZK 70 million. ODS announced plans to donate CZK 1 million to help repair damages in flooded areas, and KDU-ČSL pledged CZK 100,000.
most Czech press
Prague hires lawyer to dispute contract he originally prepared
Jansta, Kostka & spol, the law firm hired by Prague City Hall in May for CZK 3 million to represent it in a dispute with Incheba over reconstruction of the fire-damaged Industrial Palace at Výstaviště, also prepared the city’s 2003 contract with Incheba. According to Hospodářské noviny, that contract was not advantageous to the city, which now fears Incheba, which managed the property, will not re-invest insurance money in rebuilding the Art Nouveau structure. Miroslav Jansta, a partner in the firm, is a political ally of ČSSD, whose leader, Jiří Paroubek, was Prague’s deputy mayor at the time of the first contract.
HN 1, 5
Poll: ODS would win election
According to a recently released survey by CVVM, ODS would win a parliamentary election if it were held now, taking 35% of the vote; ČSSD would receive 30%.
MfD A9, Právo 1, 7
LN: Švejnar, Kalousek in running for EU commissioner
Lidové noviny reports that former presidential candidate Jan Švejnar might become the new Czech EU commissioner. Švejnar said he has heard about the offer on an informal level. Other names mentioned in connection with the position include ex-Finance Minister Miroslav Kalousek and Pavel Telička, who was the country’s first EU commissioner. Kalousek rejected the speculation.
LN 6
Topolánek: EU presidency a wasted opportunity
Former PM Mirek Topolánek said Thursday that the Czech EU presidency was a wasted opportunity as it was weakened by the fall of the government in March. He listed as successes of the presidency the April summit with the US in Prague, opening up discussion on energy security and preventing protectionism.
ČTK
Rath denies ČSSD involved in tax evasion
Amid media reports of a police investigation, Central Bohemian Governor David Rath denied Thursday that he, other leaders in the region or ČSSD engaged in tax evasion. Právo reported that the case could involve damages as high as CZK 250 million.
MfD A9, LN 5
Fewer children in ČR die of injuries
The number of fatal accidents involving children has dropped by 50% in the last 10 years, according to statistics from the organisation Dětství bez úrazů (Childhood Without Injuries). Last year 183 children under the age of 19 died in accidents, compared to 358 in 1999.
ČTK
Protesters rally in Prague against Iran violence
More than a hundred people rallied in front of the Iranian Embassy in Prague on Thursday to oppose the suppression of protests in Iran against the re-election of President Mahmoud Ahmadinejad.
ČTK
BUSINESS
Number of rich Czechs down by 23%
According to an analysis by Capgemini and Merrill Lynch, the number of wealthy Czechs – defined as someone who can invest at least USD 1 million – fell by nearly a quarter last year, from 16,700 in 2007 to 12,800. Worldwide the number of rich people fell by 15%.
most Czech press
ČSOB clients who lost in Iceland want compensation
ČSOB clients who invested in Icelandic bonds on the bank’s advice have formed an association, SOS ČSOB, to demand compensation. The clients contend the bank advised them to invest in Iceland at a time when that country’s economy was already beginning to underperform.
most Czech press
Regulated rents to rise sharply next year
Despite this year’s parliamentary approval of legislation postponing full rent deregulation until 2012, regulated rents will go up as much as 50% in some smaller towns as of January due to the Regional Development Ministry’s increase in the maximum per-square-metre cost of regulated flats.
MfD A10, Právo 1, 15
Czech household income flat, purchasing power down
According to the international study Barometer Cetelem 2009, household income in the Czech Republic will grow very slowly or stagnate this year. Purchasing power steadily increased from 1997 to 2007, growing an average of 2.2% annually, but last year shrank by 0.2%, and this year the decline is expected to be even steeper.
ČTK
ČEZ investing CZK 20 billion in new power plant
ČEZ is spending CKZ 20 billion on the construction of a new gas-vapour power plant in Počerady, to be built by Škoda Praha Ivest. The project is slated for completion in 2013.
MfD A11, Právo 15
Study: New runway to create 17,000 jobs
A planned runway at Prague Airport is expected to create 17,000 new jobs, especially in the capital and the Central Bohemia region, according to economists who helped prepare a study for the project. The runway is to be finished by 2013-14.
Právo 11, ČTK
Russian firm to maintain CZK 8bn deal with Brno’s Alta
Russian machinery giant Uralvagonzavod wants to maintain ties with Brno-based investment company Alta, according to Yevgeny Rozhkov, an adviser to new Uralvagonzavod chief Oleg Sienko. Alta’s CZK 8 billion contract to provide machinery to Uralvagonzavod, signed in 2005, is the largest deal between Czech and Russian firms. Sienko had told Russian daily Kommersant that Alta was overcharging his company. Uralvagonzavod stopped paying its commissions in the spring due to financial problems but has signed an agreement with Russian banks to restructure its loans.
HN 15
13 bidding for Crystalex Nový Bor
Some 13 investors entered bids for bankrupt glassworks Crystalex Nový Bor. The only publicly known investor is car parts producer Brano Group, whose owner, Pavel Juříček, submitted the bid in cooperation with František Novosad, owner of Harrachov glassworks.
HN 15, 16, 17
Women earn 23.6% less than men
Czech women on average earn 23.6% less than men. The average pay gap in the EU is 17.4%, according to an Anderson Willinger report.
ČTK
Plzeň might lease heating plant shares
The city of Plzeň is considering leasing shares of its heating plant, Plzeňská plynárenská, rather than sell them. The lessee will be then entitled to dividends. Plzeňská plynárenská’s profits last year exceeded CZK 800 million. Companies interested in leasing the shares include the J&T Group, Czech Coal and MVV Energie.
HN 18
Police probe Czech Railways commissions
Police are examining commissions Czech Railways (ČD) awarded to BNV Consulting. According to Rádio Česko, ČD director Petr Žalud is suspected of breaching binding rules about business relations and rules for administrating someone else’s property. The company allegedly divided one commission into three smaller ones so that it would not be required to call a tender.
ČTK
Czech GDP below EU average
The Czech Republic’s GDP ranks 17th highest among the 27 EU member countries, with a purchasing power standard (PPS) of 80 if the EU average is set at 100. Slovakia ranks 20th; Romania and Bulgaria have union’s lowest GDPs. Portugal has the lowest GDP among older member states, with a PPS of 75.
ČTK
Roads to have video billboards
High-resolution digital billboards playing video advertisements are being rolled out on Czech roads. The first debuted yesterday on Prague’s V Holešovičkách street, with more to come in other big cities in the coming year.
ČTK
