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Parties reach agreement on austerity package

The lower house of Parliament has approved an austerity package for 2010, removing the threat of a government resignation. The package of tax-hikes and spending cuts will reduce next year’s budget deficit to 162.8 billion crowns that is 5.2 percent of GDP. Following a number of modifications, Finance Minister Eduard Janota’s austerity package was approved by all parliamentary parties with the exception of the Communists.

Friday’s vote gave wide political backing to the interim cabinet led by Prime Minister Jan Fischer, which is expected to lead the country until early general elections in mid-2010, after a court struck down plans to hold an early poll this autumn. Mr. Fisher said that his cabinet would present the lower house with a draft budget proposal for 2010 by September 30, along with the government’s policy programme for the coming months.

Deputies approve 4 percent salary cut for state employees

Deputies in the lower house on Friday also approved a bill which would reduce the salaries of state employees and constitutional officials by 4 percent in 2010. This includes all civic servants, MPs, senators, judges and state attorneys and should save the state close to 127 million crowns. An earlier proposal for a 20-percent cut failed to win approval. The bill will now go to the Senate.

Czechs prepare for Pope’s visit

Preparations are in full swing for the Pope’s upcoming three day visit to the Czech Republic. Pope Benedict XVI will arrive on Saturday for what has been described as a pastoral visit intended to bring a message of faith and hope to Czechs 20 years after the fall of communism. The visit, during which the Pope will serve two open-air masses, has been timed to coincide with St. Wenceslas’ Day, a state holiday in the Czech Republic in honour of the nation’s patron saint. Pope Benedict XVI will meet with the country’s leading political and cultural figures as well as Catholic dignitaries and representatives of other churches.

Vatican hoping to see treaty approved in its present form

The visit by the Pope is expected to revive a debate surrounding the controversial draft treaty between the Vatican and the Czech state which Parliament rejected six years ago on the grounds that it was disadvantageous for the Czech Republic and would give the Catholic Church an exclusive position among other churches in the country. The Vatican has rejected the argument, saying it has signed similar agreements with other countries.

House of Lichtenstein will not try to reclaim property in Czech Republic

The Liechtenstein family will not try to reclaim family property in the Czech Republic that was confiscated from them after World War II on the basis of the Benes decrees, Prince Hans Adam said on Friday. The prince said his family would be glad to have the property returned, but it would take no legal steps to do so, because the most important issue was maintaining good-relations between the two countries. The Czech Republic and the Principality of Liechtenstein established diplomatic relations earlier this month after a 60 year rift caused by the property dispute. The Liechtensteins owned extensive properties in the Czech Republic, including the UNESCO-listed complex of the Lednice and Valtice chateaus in south Moravia.

Czech ambassador to Ukraine dismisses allegations of corrupt visa-operation

The Czech ambassador to Ukraine Jaroslav Bašta has dismissed allegations that his embassy had run an illegal visa operation in which applicants were asked to register with a private firm which collected money from them illegally. According to the Ukrainian news server Korespondent the operation lasted for over eight months during which time more than 30, 000 visa applicants paid 20 US dollars each to the private firms’ account. The server said the Ukrainian authorities were looking into the case.

Czech wanted for fraud detained in Costa Rica

A former Czech finance ministry official wanted for fraud has been detained in Costa Rica. Karel Ponocný was sentenced in absentia in 2006 having escaped from the country before the verdict was delivered. According to the Costa Rican media he was detained on an Interpol arrest warrant on the outskirts of San Jose. Ponocný worked in the ministry’s foreign debts department and with the help of an accomplice siphoned off money to his own private accounts, damaging the country to the tune of 43 million crowns.

Manager of printing firm dies after attack by laid-off employee

One of the managers of a Zlín printing firm who was shot in the head by a laid-off employee on Thursday has succumbed to his injuries. The co-owner of the firm remains in critical condition. The attacker, who shot himself after firing at his former bosses died shortly after the incident. Witnesses said he had threatened to kill the management but no-one had taken him seriously.

President Klaus –most trusted politician in the Czech Republic

According to a September poll conducted by the CVVM agency, President Klaus tops the ladder as the most trustworthy politician in the Czech Republic with 59 percent support. He is followed by Ombudsman Otakar Motejl with 58 percent and caretaker Prime Minister Jan Fischer with 56 percent. Social Democrat leader Jiří Paroubek and Civic Democrat leader Mirek Topolánek won 28 and 24 percent support respectively.


The weekend is expected to be clear and sunny with afternoon highs reaching 24 degrees Celsius.