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The European Commission has fined the Czech Republic 12.3 million euros (close to 350 million crowns and 16.4 million US dollars). The fine was given because Czech traders stocked up on meat, fruit, and rice before EU entry in order to sell them at a higher price once the country joined the Union. Prague was among eight other EU members that were penalised but only Poland received a higher fine. The countries have four years to pay the money.

The governing coalition Christian Democrats are discussing public finance reform plans and the political future of their chairman and Deputy Prime Minister Jiri Cunek at a national convention. Mr Cunek is accused of corruption and is in trouble over recent offensive remarks that he made about the Roma community. At a late night meeting of the governing coalition on Tuesday the Civic Democrats and the Greens made it clear that Mr Cunek's continued presence in government has become untenable and that the Christian Democratic Party should resolve the problem without delay. Mr Cunek has refused to resign despite growing pressure on him to do so.

The Czech Republic wants the United States to provide stronger security guarantees and military cooperation in exchange for hosting part of its missile defence shield, a note sent to the U.S. government said. The diplomatic note, approved by the Czech government last week and seen by the Reuters news agency on Wednesday, agrees to start talks with the Americans over the shield. The United States wants to deploy a radar system in the Czech Republic and 10 interceptor missiles in Poland by 2011-12. The note said the Czechs were aware of new threats to their security, mainly international terrorism, and expected that the United States would share information on those threats.

Washington says the missile shield system would counter threats from what it calls "rogue states" such as Iran and North Korea.

February saw the highest monthly trade balance surplus in the country's history, according to preliminary data from the Czech Statistical Office. Exports and imports grew by 19.5% and 14.5% year-on-year, respectively and the trade balance amounted to 13.6 billion crowns, which is 8.8 billion higher than in February last year. The figures were mainly influenced by a 3.4 billion crown increase in the trade surplus in machinery and transport equipment and by a 3.3 billion crown decrease in the trade deficit in mineral fuels, lubricants and related materials.