Speculation that President Miloš Zeman may reject some of the proposed ministers in the new cabinet has been fuelled by a report that the President’s Office asked the Czech Academy of Sciences to produce a legal study regarding his rights within the boundaries set by the Constitution. According to the internet news site lidovky.cz the study produced by the Academy’s Institute for State and Law claims that the president is not a passive player in the process of establishing a new government and would be acting within his rights were he to reject any of the PMs nominees for ministerial posts. President Zeman has already made it clear that he would not accept Social Democrat Lubomír Zaorálek as foreign minister or Martin Stropnický of ANO as defence minister. Some political analysts suggest that Mr. Zeman is not only breaking with tradition but overstepping his powers by meddling in the line-up of the next cabinet.
The Czech anti-monopoly authority has prohibited labour offices from using their IT system for welfare payments, a spokesman for the Labour and Social Affairs Ministry said. The ban came into effect on Wednesday. The anti-monopoly authority imposed the ban due to the fact the system, which was introduced last January, was chosen without an open tender. The ban will not affect welfare payments for December which have already been sent, a spokeswoman for the labour office said. Former labour and social affairs deputy minister, Vladimír Šiška, is being prosecuted on corruption charges in the case.
Czech unions have expressed support for a coalition agreement covering
of the nascent centre-left government. Václav Picl, the deputy chairman
the union umbrella organisation ČMKOS, told journalists on Monday policy
priorities generally corresponded with that of the unions. Josef
the head of the strongest trade union KOVO, meanwhile, went further,
the coalition agreement was the best the country had seen in the
In particular, union leaders welcomed the planned increase in the minimum wage, the abolition of private pension schemes (the so-called second pillar of pension system created by the previous centre-right government) and more support for families with children. Critics have charged that the emerging coalition, however, has not outlined how many planned changes will be paid for. On Monday, representatives of the Social Democrats, ANO and the Christian Democrats are meeting to discuss ministerial posts in the emerging government.
In this week’s business news: Industrial output has grown for the fourth consecutive month; The prime minister has announced that the interim government will not decide on coal mining limits; Tow more people have been charged in connection to the privatization of mining company OKD; Unemployment figures increased slightly in November; The Czech state debt has decreased in the past nine months.
A battle over opening hours at Czech stores during the holidays has continued for several years and once again the question of whether stores should close or remain open at Yuletide is being hotly debated. Some Czech union representatives want to see hours curbed so that cashiers or shop assistants can spend more time with their loved ones; critics say the matter should be left up to employers.
This week in business news: Travel Service Airlines to buy 34-percent stake in Czech Airlines; Developer Metrostav files arbitration suit against Prague over Blanka tunnel payments; Nominal average wage has risen by 322 crowns, but real wages stagnate; GDP has fallen in Q3 by less than was expected; Mining company OKD will have a new director starting January; Industrial space is the fastest growing sector of the Czech real estate market.
President Miloš Zeman has expressed support for police president Martin Červiček, who is fighting to retain his post in the wake of a legal hurdle that has left the country with two police chiefs. His predecessor Petr Lessy was dismissed on suspicion of slander, but he was reinstated by Interior Minister Martin Pecina earlier this week after a court cleared his name. Neither Červíček nor Lessy are willing to give up the post, and Mr. Červicek has indicated that the interior minister had used the opportunity to remove him after he refused to succumb to pressure to effect personnel changes at high posts.
The average monthly salary increased by 322 crowns in the third quarter to 24,836 crowns. Adjusted for inflation, this is an increase of only a tenth of a percentage point, which basically signifies a stagnation of wages. Around two thirds of people employed in the Czech Republic, though, receive a lower salary than the average, with the median being currently around 21,000 crowns. Long-term stagnation and slight decreases in real wages is leading to a decrease of household spending, which the Czech National Bank was hoping to thwart with its recent intervention against the crown.
Petr Lessy has been reinstated as president of the Czech police force – despite the fact that the post is still occupied by the man who replaced him, Martin Červíček. Mr. Lessy was returned to the position by the minister of the interior, Martin Pecina, after a Prague court ruled that criminal charges of abuse of office and slander taken against him were unfounded. Mr. Lessy will remain on holiday until the situation is resolved. Mr. Pecina said he hoped Mr. Červíček would act on earlier intimations that he would stand down of Mr. Lessy returned.
The monthly salaries of employees of state institutions will increase on average by 787 crowns, to an average salary of 24,644 crowns, according to the current budget proposal for next year. The pay hikes should cost the state an extra 4.33 billion crowns. According to the Czech Statistical Office, the average salary for the whole of the Czech Republic reached 24,953 crowns per month in the second quarter of this year. The number of state employees will most likely decrease next year by one tenth of a percent, or 514 places.
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