In this week’s business news: The Czech national debt has risen by almost 10 percent in the first half of 2012; Real estate prices are dropping for the second quarter this year, while land prices are on the rise; Škoda Auto will introduce a new Fabia specifically for the Indian consumer; Fuel prices are breaking record highs again this week; a number of operational programmes in the Czech Republic will not get the EU funds they were counting on.
National debt rises in H1 of 2012
Market prices of apartments continued to drop in Q2
The market prices of apartments continued to drop in the second quarter of 2012, according to figures by the Czech Statistical Office released on Thursday. The prices of older flats decreased by 5.7 percent while the prices of new apartments in Prague fell by 3.4 percent. Analysts claim that the continuing slump in apartment prices is partly due to the cheaper new construction projects and discounts that developers are increasingly offering in the sluggish real estate market. There is increasing interest, though, among Czechs in purchasing plots of land as a way to invest and save money, which is forcing prices of land to go up.
Škoda to create a new local version of Fabia for India
Fuel prices are still on the rise
Operational programs will not get EU funds
The European Commission has refused to pay around one billion euros into four Czech operational programmes over errors in their administration, the news website Aktuálně.cz reported on Thursday. The subsidies have been cut for the Transport, Environment, Enterprise and Innovation programmes as well as for the Regional Operational Program South-West. The programmes will have to be subsidized from the state budget and the budget of two regional authorities. The website reported that funding might also be cut for other Czech operational programmes.