The European Union is asking the Czech Republic and six other EU states to raise the sales tax on beer. The increase would equal about one-fifth of the current tax rate and come into effect sometime between 2008 and 2010. Brussels is suggesting the change because EU analysts say that beer prices have not been affected by general inflation in recent years, and experts say higher prices are also a way to combat alcoholism. Czech brewery owners are opposed to the proposal.
Units from the anti-corruption police division arrested Petr Smetka in Prague mid-day Friday, on the basis of a court order. Mr. Smetka was transported to Pankrac prison where he begins serving a 12-year sentence for his role in an embezzling scheme. According to the Prague Municipal Court, the extraordinary order to have Mr. Smetka taken into custody came after he disobeyed a June court ruling, preventing him from accessing assets set aside to compensate clients who lost money when H - System, a construction company that Mr. Smetka founded, went under. At least 1095 people lost a total of over 980 million crowns (nearly $44 million US) in the fraud scheme.
A new internet game called Total Burnout of Lidice has appeared in a second variation. The original game was created by ad agency McCann Erickson as an educational tool, to interest young people in the Nazi WWII era destruction of Lidice, a village in central Bohemia; the original game which links website visitors to the Lidice memorial website received approval from the head of the Lidice memorial, Milous Cervencl. But the new, pirated release involves killing, and Mr. Cervencl says that he regrets that good intentions can be twisted in such cruel ways. The creators of the pirated game remain anonymous.
The Prague districts of Zizkov, Vinohrady and a portion of Prague 1 was left without electricity on Friday morning, when four transformers failed at 10:36am. The electrical failure left trams in Zizkov standing, and the metro was also affected for a short time. Experts agree that a technical failure is to blame.
A division responsible for investigating cases of corruption is working on a case involving members of the company VAE, which was co-owned by Mirek Topolanek, the newly-appointed Czech Prime Minister. At issue is a 1999 First City Bank loan worth 67 million crowns (over $3 million US), which was not repaid in its entirety. VAE thus has an outstanding debt and a criminal investigation is underway. Mr. Topolanek said that the investigation does not concern him directly.
American pop star Madonna has wrapped-up her stay in Prague with a second sell-out concert at Sazka Arena on Thursday night. The daily Pravo reports that former Czech president Vaclav Havel and his stepdaughter Nina were the only people from outside of Madonna's immediate circle to partake in the star's traditional pre-concert prayer before the opening show on Wednesday. Mr Havel's spokesman said he was moved by the prayer service, and did not find the concert performance offensive. Madonna has been heavily criticized by Christian groups for symbolism used in her 'Confessions Tour' show.
The Czech Republic's first Internet-only newspaper, Aktualne.cz, is expanding into neighbouring Slovakia later this month, on September 19. Aktualne.cz began in November 2005 and registered an average of 140 000 daily hits in its first seven months of existence. With the rapid spread of broadband and wireless access in the Czech Republic, about 3.6 million Czechs (roughly one-third of the population) are regular users of the Internet.
The Czech energy giant CEZ, which is also the biggest energy company in central and eastern Europe, is to list on the Warsaw Stock Exchange in October, company chief Martin Roman said on Thursday. He said that CEZ shares will be listed simultaneously in Warsaw and Prague. Poland is described by CEZ, already present in Romania and Bulgaria, as one of its strategic markets for its expansion in central Europe and the Balkans. In May, the Czech power giant acquired two Polish power plants situated in southern Poland not far from the Czech border.