Business briefs

Spending and tax relief proposals in gov't policy agenda axed; U.K. and Irish data show no 'flood' of jobseekers from new EU states; Income gap in Czech Republic widening fast

Business briefs

Spending and tax relief proposals in gov't policy agenda axed

The new coalition government of Stanislav Gross this week looked ready to abandon a number of proposals outlined in its draft policy agenda, as it became clear that there wasn't enough money in the state budget to fund them. At a meeting of economic ministers on Wednesday, Finance Minister Bohuslav Sobotka urged his colleagues to cut a number of spending and tax relief proposals. Disputes are reportedly still raging over at least six points in the government's agenda. A proposal to increase state subsidies for young people seeking mortgages and a move to cut the VAT rate for lodging were the first proposals struck down.

U.K., Irish data show no 'flood' of jobseekers from new EU states

Photo: European Commission

Some 100 days after the "big bang" expansion of the European Union from 15 to 25 member states, British and Irish officials have released data confirming that fears of an onslaught of jobseekers from accession countries such as the Czech Republic were unfounded. Along with Sweden, the U.K. and Ireland were the only old EU members fully open to jobseekers from the new member states. The data show that just over 8,000 people from accession countries joined Britain's work registry in May and June, while 14,000 already living there legalised their status. Ireland saw a far greater per-capita increase with almost 23,000 people from the member states seeking employment there in the past three months,

Income gap in Czech Republic widening fast

The income gap ratio between rich and poor in the Czech Republic is growing fast, although it remains among the lowest in the industrialised world. Salary increases for people in the lower income brackets have not increased much over the last few years, but the pay of top wage-earners has grown exponentially, the Czech daily Mlada fronta Dnes reported. Four years ago there were nearly 60,000 people reporting incomes of more than 40,000 crowns per month; today there are twice as many in that income bracket. The top 20 percent of Czechs owns 35 percent of the wealth, while the bottom 20 percent own 10 percent, the report showed.