• 08/24/2010

    Czech companies are becoming even worse at paying their bills on time due to the economic crisis, according to a survey of more than 22,000 firms. The survey by the company ČSOB Factoring shows that firms on average pay bills 19 days after the due date. That means that the average time for payment to be made after the bill is sent has risen to 72 days from 59 days in 2008. The economic crisis is put down to the continuing caution caused by the economic crisis. In some sectors, however, the payments record is much better than average. This is for example the case of the auto sector where bills are on average paid within 40 days.

    Author: Chris Johnstone
  • 08/24/2010

    Confidence in the Czech economy slipped slightly in August compared with July according to figures released by the Czech Statistical Office on Tuesday. The overall confidence indicator fell 0.8 points over the month. Consumer confidence fell by 4.5 points over the month, outweighing a slight rise in business sentiment. The industry and trade sectors were the most optimistic with construction still in the dumps. The level of the composite confidence index is 16.3 points higher than a year earlier. Confidence has generally been rising since the end of 2009 following the steep drop during the economic crisis.

    Author: Chris Johnstone
  • 08/24/2010

    Czech Transport Minister Vít Bárta has sacked the head of the country’s Road and Motorway Directorate and immediately named his successor. The outgoing head of the directorate, Alfred Brunclík, was punished for including a key bridge on the route of the D47 motorway among construction work that the directorate planned to freeze due to cost cutting. The D47 links Ostrava with the rest of the country and continues to the Polish border. His successor, Jiří Švorc, said the directorate would seek maximum savings not just from ongoing construction projects but also operating costs. The directorate has long been under fire for the high construction costs of Czech motorways compared with others in Europe.

    Author: Chris Johnstone
  • 08/24/2010

    In football, Czech manager Michal Bílek has named a near full strength squad for the first European Championship qualifier against Lithuania. The squad includes recently sidelined goalkeeper Petr Cech and striker Milan Baroš. The only major absence is injured defender Tomáš Sivok. The opening qualifier for the 2012 European Championships will be played in Olomouc on September 7.

    Author: Chris Johnstone
  • 08/23/2010

    The Ministry of the Interior has presented its plans for saving 8.3 billion crowns. Speaking to reporters on Monday afternoon, Interior Minister Radek John said that the priorities were to save on operational expenditures and investments, and decreased pay for police and firemen. However, costs would be cut he said from all areas of the ministry. Other measures will include reducing police activity abroad, cancelling plans for police and fire department buildings and equipment, and revising all e-government projects. Mr John also said that effective policemen should have more money in later years in spite of planned cuts to state employees’ salaries, saying that their bonuses would be reinforced from the salaries of the 1,500 officers who leave service each year. Nonetheless, the minister allowed that the next year would be “painful” for police and fire department workers.

  • 08/23/2010

    Prime Minister Petr Nečas met with trade union representatives on Monday to discuss controversial changes to the Labour Code that would see public sector salaries cut by 10% across-the-board. The PM for his part told reports after the meeting that both sides would be looking for solutions acceptable to them both, though he did not expect complete accord. He also said that the proposal need not take effect as early as January 1, as he gave precedence to thorough rather than speedy negations. The Labour Ministry plan entails lower salaries for state employees in favour of greater employee bonuses based on individual performance. Unions say the plan is the strongest attack on workers’ rights in the last twenty years and have threatened to protest.

  • 08/23/2010

    Finance Minister Miroslav Kalousek has spoken out against the prime minister’s disapproval of a plan to finance flood relief from income tax breaks. Mr Kalousek said that the chairmen of the coalition parties had agreed on his ministry’s flood tax two weeks earlier, and said the PM’s about-face on the issue was absolutely inappropriate in a coalition. Following floods in north Bohemia two weeks ago, Mr Kalousek said all working Czechs would contribute to a flood relief fund in the form of a CZK 100-a-month cut in income tax breaks, a move some critics slammed as nothing less than a new tax. On Sunday, Prime Minister Nečas said he had a number of reservations regarding the flood tax, and referenced a pre-election promise not to increase direct taxes.

  • 08/23/2010

    The automotive parts manufacturer Delphi will be closing a cable production plant in the north Bohemian town of Česká Lipa due to low sales. Lay-offs have been underway for some time already in the plant; of the 3,400 jobs there in 2007 only 1,400 remain, with 300 positions having been done away with since the start of the year. According to a trade union representative, the company intends to move its production to Romania and partly to Poland. Several hundred people demonstrated in the plant’s car park on Monday to protest what they say are significantly low severance payments.

  • 08/23/2010

    The state body for foods inspection has forced two Czech wine producers to recall hundreds of thousands of litres of wine after the companies were unable to prove the origin of the grapes used. Inspectors found that České vinařské závody and Vinium Velké Pavlovice had used over a million kilos of grapes that were of unknown origin but used in products labelled as domestic wine. The Czech Agriculture and Food Inspection Authority said that it intends to thoroughly inspect other wine producers for violations they say are damaging both to consumers and honest domestic wine growers.

  • 08/23/2010

    The Constitutional Court is reviewing municipal order made by the North Bohemian town of Krupka, which requires non-locals to register their presence. The Ministry of the Interior filed a complaint against the ordinance, which requires all visitors over the age of 15 with permanent residence elsewhere to report to town hall should they remain in town for more than 30 days. The town hall says that such stays are a disturbance of public order and a danger to security and property. In its complaint, the ministry points to the constitutional right to freedom of movement and says the town exceeded its authority in making the ordinance.

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