Country's biggest health insurer under forced administration

The newly appointed Health Minister David Rath imposed forced administration on VZP, the largest state-owned Czech health insurance company, on Thursday. He said the move was supposed to improve the company's ailing finances. Health Minister Rath along with Prime Minister Jiri Paroubek called on the VZP's director Jirina Musilkova to resign but she refused to step down.

The government's move has been criticised by the opposition right-of-centre Civic Democrats as well as Czech President Vaclav Klaus, who is on a state visit to India.