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The Central Bank has called on the Czech government to adopt reforms in public finances that would make it possible for the Czech Republic to adopt the currency of the European Union, the euro, as early as 2007. In a statement released on the bank's internet site Friday, the Central Bank said that analysis had shown that overall the situation was favourable for the Czech Republic to join the Eurozone relatively quickly. But, the bank stressed the need for some changes in economic policy to ensure the opportunity would not be missed. At the same time the bank has conceded that the outlook for current fiscal policy is not entirely consistent with the quick adoption of the euro. Criteria which must be met in order for the country to adopt the European currency requires, for example that the public finance deficit not exceed 3 percent of the Gross National Product. Current budget policy indicates, however, that by 2006, the public finance deficit could exceed 6 percent of the GNP.

The most popular choice to succeed Vaclav Havel as president is ombudsman Otakar Motejl, according to a survey carried out at the beginning of this month by the CVVM polling agency. Some 45 percent of Czechs would like to see Mr Motejl become president, the poll suggests. Of the official candidates for the post, the most popular is Petr Pithart of the Christian Democrats, with 37 percent support. The former leader of the Civic Democrats, Vaclav Klaus, came third in the poll, with 31 percent. Prime Minister Vladimir Spidla has said that if a bicameral vote in January to elect a president fails, the constitution could be changed to allow for a direct election. President Vaclav Havel's term concludes at the end of next month.

Senate chairman Petr Pithart, of the Christian Democrats, and former justice minister Jaroslav Bures supported by the Social Democrats have been officially nominated as candidates in the Czech Republic's upcoming presidential elections. Mr Pithart and Mr Bures join two other candidates nominated earlier, former prime minister Vaclav Klaus, supported by his party, the right-of-centre ODS, and former military prosecutor Miroslav Krizenecky, put forward by the Communists. The first round of presidential elections will take place in January when both houses of parliament will vote in a joint-session, allowing for a maximum of three rounds to decide a successor. The country's current president, playwright and former dissident Vaclav Havel, will step down in February, after having held office for more than 12 years.

Defence Minister Jaroslav Tvrdik has said all 250 members of the army's elite anti-chemical unit will remain in Kuwait for the time being, due to the uncertain situation surrounding Iraq. Mr Tvrdik told reporters the unit would not be withdrawn in January as originally planned, because he said this would send the wrong signal to Iraqi President Saddam Hussein.