The Czech National Bank has raised interest rates by a quarter of a percent, with the benchmark two-week repo rate growing to 2.0 percent to stand level with the euro zone rate. Year-on-year inflation in September reached 2.2 percent, a marked acceleration from 1.7 percent in August. However, Finance Minister Bohuslav Sobotka questioned the central bank's decision, which he said was premature.
In this week's business news; two mobile operators to provide TV reception from next year; the OECD says of all its members the Czech Republic relies the most on social insurance to fill the state coffers; Czech Airlines records a 22 percent rise in passengers, while Prague airport also sees an increase in numbers; and real estate prices are either stagnating or falling in the Czech Republic.
Ceska Sporitelna predicts 2013 Czech entry into eurozone; Initial compromise reached with health insurance companies; Czech Republic has among the highest perceived levels of corruption in the EU; Group of Civic Democrats file criminal complaint over Unipetrol deal; Paroubek says France may be willing to relax labour market restrictions on Czechs; COI imposes record fine on Ahold supermarket chian
The Ceska Sporitelna bank has issued a report which foresees the country will not be able to adopt the Euro before 2013. It furthermore expects a rate of 25,50 crowns to the euro; the current rate stands at a little under 30 crowns. The Czech government has been working with a plan that sees the adoption of the single European currency three years earlier, by 2010 at the latest. The bank report also says Slovakia is the only member of the Visegrad Group, which also includes Poland, Hungary, and the Czech Republic, whose planned date - 2009 - is realistic.
The lower house of the Czech Parliament has approved the state budget for 2006 with a deficit of 74.4 billion crowns (an estimated 3.1 billion US dollars). The budget deficit should not exceed 4.6 percent of the GDP if the Czech Republic is to meet conditions under the EU convergence programme paving the way for the country to adopt the euro. The lower house will decide at the end of the year how the 2006 state budget is to be divided among individual ministries.
Hyundai to build $1.2bn car plant in the Czech Republic; Premier Jiri Paroubek has agreed to set up parliamentary commission on Unipetrol; Swedish broadcaster MTG buys $115m stake in TV Prima; State to sell 56 percent stake in Severoceske Doly to CEZ for $375m; Retailers Tesco (UK) and Carrefour (France) agree to asset swap in Taiwan, Czech, Slovak republics
Forget the weather - the hot topic in Prague this summer is the price of petrol. For a nation of country cottage enthusiasts for whom a weekly trip to their country cottage is a must the price of petrol is a big deal. And it has been climbing steadily all summer. Nowadays you'll see many drivers slowing down as they go past a petrol station with an eye out on where you can get the lowest price.
President Klaus vetoes regional hospital bill; Czech economy posted GDP growth of 5.1 percent in 2Q; Market research survey shows growing disparity in purchasing power between Bohemia and Moravia; South Korean automaker Sungwoo Hitech to build $105m plant here; Czech Republic building highways at fastest rate ever, but at a greater cost than many European countries
The Czech economy grew by 5.1 percent in the second quarter of this year, its fastest rise since the same period in 1996, the Statistical Office said on Friday. Deputy Prime Minister for the Economy Martin Jahn said the growth was due to foreign investment and the utilisation of European Union funds.
Jana Ciglerová: Americans say their lives are fantastic, Czechs say everything is terrible – neither is true
“There is good, better and then there is the USSR.” – New book depicts life in communist Czechoslovakia through memories of people who experienced it
Czech IT specialists organize “hackathon” to give government online motorway vignette sales system for free
CzechTourism head hints attracting tourists no longer agency’s main goal
Minister: Czech Republic won’t take in 40 child refugees from Greek camps