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Breakfast Brief – 27 March 2009

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Table of Contents

NEWS
Klaus wants speedy govt replacement
Mirek Topolánek yesterday submitted his cabinet’s resignation to President Václav Klaus after losing a no confidence vote Tuesday. Klaus said he preferred a speedy appointment of a new cabinet while the country presides over the EU and that a new leader must have the support of at least 101 MPs before he would ask him or her to form a new cabinet.
most Czech press

Czech PM’s ‘road to hell’ comment graces FT cover
PM Mirek Topolánek’s comment this week describing the US stimulus plan as the “road to hell” made a big splash in the foreign media. HN writes that no other Czech PM has ever warranted a front page article and photo in the Financial Times. Topolánek said the statement was inspired by last week’s AC/DC concert in Prague. ČSSD leader Jiří Paroubek said the party would not tolerate the PM’s government and EU presidency if the ODS leader continued with statements like that.
HN 2, LN 1, 6

Topolánek: Resignation won’t affect Obama visit
When asked by Czech Television whether his cabinet’s resignation this week would weaken his mandate for April talks with US President Barack Obama in Prague, Mirek Topolánek said he would meet Obama as the chairman of the European Council, not as a caretaker Czech prime minister.
ČTK

Havel wants Topolánek to stay in charge
Former president Václav Havel said Václav Klaus should give Mirek Topolánek a chance to form a new cabinet and finish out the Czech EU presidency before calling for early elections.
MfD A2

ODS wants to toss out renegade MPs
Civic Democrat (ODS) leaders yesterday called on the party’s local branches to expel MPs Jan Schwippel and Vlastimil Tlustý from the party over their disloyalty in Tuesday’s no confidence vote.
ČTK

Hampl does not have to pay ČSOB
The Prague City Court yesterday ruled that Mojmír Hampl, the central bank’s vice-governor, does not have to compensate ČSOB for critical statements he made three years ago on the way the bank handled the takeover of failed IPB bank. Hampl, then a board member of the Czech Consolidation Agency (ČKA), said the “bank should pay the Czech state for mistakes it made”. The court ruled the statement did not exceed the limits of an acceptable critique.
HN 4

Paediatricians to recoup lost fees with paid services
Paediatricians, who must stop collecting medical fees as of 1 April, have decided to offer paid services to help make up for an estimated CZK 60,000-70,000 in lost annual revenue. Milan Kudyn, the deputy chair of paediatricians’ association, said doctors, for example, could offer to send out vaccination reminders to parents for a CZK 300-500 fee. All payments would be voluntary.
HN 5

Radio council pushing ČRo head to resign
The council for radio broadcasting has called on the director of Czech Radio (ČRo), Václav Kasík, to resign for allegedly violating the screening law by hiring Libor Křivka, reportedly a communist counterintelligence collaborator. Křivka, who denies the allegations, resigned last year. Kasík has also been criticised for broadcasting Primal Scream’s song “Swastika Eyes”.
HN 4

Landlords relieved of pavement maintenance
A bill that would transfer responsibility for maintaining the safety of pavements and walkways to municipal authorities passed the Senate yesterday and is awaiting presidential ratification. Currently, house owners must clear away snow from walkways and are held responsible for any injuries.
ČTK

Police probe student for writing attack essay
Police are investigating a secondary-school student in Domažlice after he submitted an essay describing plans for a violent attack against his school.
most Czech press

Czech youth top European pot smokers
The ESPAD 2007 study shows that 45% of Czech 16-year-olds have tried cannabis or hashish, the highest rate in Europe; one in 11 minors has had some experience with harder drugs.
ČTK

BUSINESS
Orco files for protection from creditors
The Prague Stock Exchange yesterday suspended trading in shares of Orco Property Group after the developer asked a Paris court for protection from creditors. The company, whose shares are also traded in Paris, Warsaw and Budapest, says it is not insolvent but needs to restructure and sell off some assets. Aleš Vobruba, the head of Orco in the Czech Republic and Slovakia, said ongoing projects are not endangered.
most Czech press

Senate extends VAT write-offs for business cars
In hopes of boosting car sales, the Senate has approved an amendment to allow businesses to write off VAT payments on all new passenger cars. Until now, businesses could only apply the deduction to purchases of vehicles with a separate cargo space. The president is expected to sign the bill in two weeks.
HN 15

Telefónica O2 heads favour CZK 50 dividend
The directors at leading Czech telecoms operator Telefónica O2 have proposed paying out CZK 16.1 billion in dividends, or CZK 50 per share, using retained profits from previous years.
Právo 17, ČTK

Court scraps elite status for runway project
Following a complaint from 17 senators, the Constitutional Court yesterday annulled a law stipulating that the planned construction of a new runway at Prague Airport was in the public interest. The law was intended to facilitate and speed up the project.
E15 4, Právo 8

State owes road builders millions
Pavel Hartig, the deputy head of the Road and Motorway Directorate, said his office still owes suppliers some CZK 800 million. Václav Matyáš, the head of the Association of Building Entrepreneurs, said the debt is preventing suppliers from paying subcontractors and could lead to the dissolution of smaller companies. The state budget for road construction this year is about CZK 8.5 billion lower than last year and has a shortfall of more than CZK 12 billion for ongoing projects.
HN 15, 18

AAA posts record loss, will pull out of Hungary
Prague-listed used car dealer AAA Auto last year lost EUR 28 million, following a loss of EUR 4.8 million in 2007. The firm says it will temporarily withdraw from Hungary.
most Czech press

Mark BBDO wins ad ‘Agency of the Year’
Mark BBDO has been named the Czech advertising agency of the year by the Stem/Mark and Millward Brown research agencies. Euro RSCG placed second. The winner was determined by ad revenue, the number of victories in domestic and foreign ad competitions and votes of the 300 biggest ad buyers.
most Czech press

Senators want to scrap TV licence fees
Two ODS senators yesterday filed a proposal to abolish TV and radio licence fees and fund public broadcasters with tax revenues instead.
Právo 4

Some ČSA staff accept 5% pay cut
Technicians at Czech Airlines (ČSA) have agreed to have their salaries reduced by 5% in order to avoid redundancies.
E15 10, Právo 15

Czech govt foresees 2% GDP drop
Finance Minister Miroslav Kalousek said yesterday the government is figuring on an economic contraction of up to 2% this year. The opposition expects a decline of more than twice that.
Právo 3

Lesy ČR will axe around 10% of workforce
State forestry manager Lesy ČR has said it will make some 340 of its 3,500 staff redundant in the next two years.
ČTK

Lorry maker Tatra freezes salaries
The management and union at lorry maker Tatra on Wednesday agreed there would be no pay rises this year. Tatra cut production last October over low demand.
ČTK

Czech data networks ranked in top quarter
The World Economic Forum has ranked the Czech Republic 32nd out of 134 countries in the density of its communication networks, four notches higher than a year earlier.
ČTK

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