New World Resources Plc, the largest Czech producer of coal for steelmakers, agreed to keep its unprofitable Paskov mine open until end-2017 after the government pledged to provide financial aid for the miners. The government will provide CZK 600 million to cover the social costs after the mine shuts down, Industry and Trade Minister Jan Mládek said yesterday at a press conference in Prague.Continue Reading

TOP 09, a ruling-coalition party, demanded the country join the European Union’s fiscal compact this year, setting up a clash with PM Petr Nečas, who opposes the move. The three ruling parties are negotiating a new coalition pact after the administration lost its parliamentary majority last year when the smallest party splintered. The U.K. and the Czech Republic were the only EU members not to sign the fiscal treaty in March, which stiffened budget rules meant to stabilize the euro.Continue Reading

Parliament postponed a vote on tax increases that is tied to a confidence motion in the government, as Premier Petr Nečas’s struggle to win backing for his austerity policies shifts to a weekend party congress. Nečas is battling to win support for the package of measures he says are needed to cut the budget deficit next year as a group of deputies from his Civic Democratic Party, or ODS, opposes his tax plan.Continue Reading