Business briefs

European Commission approves CR investment incentives; move will streamline aid applications; Czech Republic has highest percentage in EU of workers employed in industry; Cabinet sets aside 1.5 bn for housing loans to newlyweds, terms not yet agreed; Deputy Premier Martin Jahn says state Cesky Telecom stake could be 'floated'; C&W/HB survey names Prague as 13th best city in Europe to do business

Business briefs

European Commission approves CR investment incentives; move will streamline aid applications

The European Commission has officially approved the Czech Republic's investment incentives plan, streamlining the process for providing state aid, the government agency CzechInvest said this week. The approval means, for example, that state assistance granted to the processing industry in the Czech Republic is in complete compliance with EU regulations and applies to all forms of aid in the processing sector industry, including income tax relief, job creation grants and employee training and re-training grants. It also means that aid applications no longer need to go through the state's Anti-Monopoly Office.

Czech Republic has highest percentage in EU of workers employed in industry

Nearly 40 percent of Czech workers are employed in industry, which is the highest level of all 25 European Union countries, according to a new survey by the Eurostat statistical office. Only 56 percent of Czech workers are employed in the service sector, which is far below the EU average, it said.

Cabinet sets aside 1.5 bn for housing loans to newlyweds, terms not yet agreed

The Cabinet this week set aside 1.5 billion crowns for housing loans to newlyweds but has not agreed on the terms of the loans. At 300,000 crowns per loan, the equivalent of about $12,000 dollars, there will be money to lend to 5,000 families. The loans will be distributed by the State Housing Fund. Housing Minister Jiri Paroubek said banks would be asked to take part in a second phase, if there were any applicants still looking for a loan.

Deputy Premier Martin Jahn says state Cesky Telecom stake could be 'floated'

Deputy Premier Martin Jahn told the Reuters news agency this week that instead of selling the state's stake in Cesky Telecom to a single investor, it should probably be floated on the stock exchange Jahn said doing so would simplify the sale and ensure transparency.

C&W/HB survey names Prague as 13th best city in Europe to do business

An annual survey of the top 30 European cities for doing business, conducting by the property group Cushman & Wakefield/Healey & Baker placed Prague in the number 13 spot, a four place jump over the 2003 survey. Some 40 of the 500 companies surveyed said they intended to come to extend their businesses to the Czech Republic within the next five years.