Business News
Inflation reaches another all-time low but unemployment causes growing concerns. Efforts to revitalise northern regions worst-hit by unemployment continue. Czech doctors are prepared to push their wage demands by going on strike. Economic crime in Northern Moravia has been on the increase.
Inflation at all-time low
Czech inflation dropped to a new all-time low in November, slowing down to 0.5 percent year-on-year. In a monthly comparison, consumer prices fell by 0.2 percent, which is the eighth decrease this year. The inflation development was influenced mainly by lower prices of foodstuffs and non-alcoholic beverages, as well as fuels. The lower consumer price growth, according to the Czech National Bank, results from the continuing effects of external factors as well as a surplus demand. Analysts say the low inflation opens room for the Central Bank to cut the interest rates further at the beginning of next year, possibly by a quarter of a percentage point.
Unemployment stagnates at 9.3 pct
The unemployment rate stagnated at 9.3 percent in November. At the same period last year, the unemployment rate stood at 8.5 percent. However, the number of jobs offered by employment offices decreased slightly, so that there are more than 11 applicant per one vacancy. The lowest rate of unemployment was recorded - as has been the case for many years - in Prague and Central Bohemia - between 3 and 4 percent, on the other hand, the greatest number of jobless people - around 20 percent - was registered in some of the coal-mining regions in North Bohemia and North Moravia.
Revitalisation of Northern regions on agenda
Speaking about high unemployment in the Northern regions of the country, this week a conference regarding the revitalization of these areas took place in Prague. These regions continue to suffer from relatively high unemployment, reaching between 15 and 20 percent in some places. This is largely due to the fact that the majority of employment was historically based in labor intensive industries such as mining and steel production. Since the fall of communism many of these enterprises have been drastically scaled down or eliminated all together because they were highly inefficient. Martin Hrobsky spoke with Jarmila Skvornova who is head of the board of advisors to the prime minister Vladimir Spidla. She explains how the restructuring is being carried out in this region of the Czech Republic:
"I think it is a significant problem because the restructuring of certain sectors is currently taking place. This restructuring already took place in European Union countries that have signed agreements and are currently receiving financial support which they shall continue to get until 2006, in order to be able to modernize mining, steelworks, and heavy industry with new technology. In the Czech Republic we are about half way through the process, and I believe it is still going to require a lot of funds before it is completed. It's good the European Union is aware of the fact that its an expensive process. It's up to us to be able to apply for funding from the EU so it's important that a kind of national agency be founded here that would administer subsidies from a central base."
Doctors threaten to go on strike
The trade unions in the health sector have threatened to go on strike to support their wage demands. The chairman of the medical trade unions, Jiri Schlanger, said at the unions' congress at the weekend that they wanted wages in the health sector to grow appropriately before the country's accession to the EU. They have also protested against further cuts in social spending and voiced strong dissatisfaction with wide-spread violations of the labour code in hospitals regarding working overtime.
Economic crime increasing in Northern Moravia
The police have reported a significant growth in serious economic crime in Northern Moravia. Over the first ten months of this year, the police investigated more than 6000 cases, which is a 25-percent increase as compared to the same period in 2001. The biggest increase was reported in the number of frauds and misuse of credit cards. The police say one of their greatest successes was the case of the bankrupt Moravia bank. A total of 17 of its managers were accused of asset stripping amounting to a billion crowns.
