Business News
Czech central bank recommends adopting euro in 2007. Number of foreign tourists to be 15 pct lower this year. Two thirds of Czechs get lower than average wages. Temelin's second reactor reconnected to grid after 4-month shutdown. CzechTrade to open new office in Copenhagen in January. Czechs more satisfied with living standards than 4 years ago.
Czech central bank recommends adopting euro in 2007
The Czech Republic's accession to the EU is planned for May 2004. For procedural reasons, the earliest date for joining the eurozone is 2007.
One of the conditions for the adoption of euro - the so-called Maastricht criteria - is a public finance deficit not exceeding 3 pct of GDP. However, the Czech National Bank says in its analysis that if the government continues with its current budgetary policy, the Czech public finance deficit will reach 6.6 percent in 2006.
Some analysts say an early adoption of the euro as proposed by the Czech National Bank is unlikely because politicians have made it clear that they are reluctant to adopt the necessary but painful fiscal reforms that will be unpopular with the voters.
Number of foreign tourists to be 15 pct lower this year
The number of foreign tourists who visited the Czech Republic in 2002 fell by an estimated 15 percent to 5.8 million, down from almost 7 million the year before. The drop is mainly due to the disastrous floods that hit the country in August. Foreign currency revenues from tourism therefore decreased by some 18 billion CZK to 100 billion as compared to the year 2001. This year, the number of foreign tourists is likely to rise again and may surpass the figure for 2001.
Two thirds of Czechs get lower than average wages
According to the Czech Statistical Office, almost two thirds of Czechs earn wages below the national average because the figure is distorted by extremely high incomes of a relatively small number of people. The Statistical Office also pointed out that there are big differences between Prague and other regions and also between men and women nationwide. In 2001, the average wage in the Czech capital was 43 percent higher than in the rest of the country. As for the differences between men and women, the Statistical Office said women earn around a quarter less than men.
Temelin's second reactor reconnected to grid after 4-month shutdown
The second reactor of the controversial nuclear power station Temelin in Southern Bohemia has been connected to the power grid a few days before the end of the year. The reactor had been shut down for four months due to repairs on the turbine whose rotor had to be replaced twice.
CzechTrade to open new office in Copenhagen in January
The Czech government's trade promotion agency CzechTrade is opening an office in Copenhagen, Denmark, in January to help Czech companies search for business partners and expand on the Danish market.
The Copenhagen office is the first in Scandinavia and according to CzechTrade general manager, Martin Tlapa, it could be a stepping stone for a further expansion of Czech companies in the whole region. He added that small and medium-sized enterprises account for 85 percent of the Danish economy, which creates great opportunities for Czech companies to seek partners in many branches.
Czechs more satisfied with living standards than 4 years ago
According to a recent survey, Czech households have been increasingly satisfied with their standard of living in the course of the last four years. Whereas in 1998, less than 55 percent of Czechs viewed their standard of living as good, in 2002 it was 63 percent. Generally, the most satisfied are young people between 15 and 19 years of age, men, entrepreneurs, employees at managerial positions, students, married and single people, and voters of the right-of-centre opposition Civic Democratic Party. In contrast, pensioners, the unemployed, divorced, widowers and widows, women and voters of the Communist Party are negative about their standards of living.
