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07/12/2018
Transport services providers, including the app-based “ride-sharing” company Uber, will have to register their revenue using electronic cash registers as of this autumn. Uber CEO Alexei Stakh signed a new tax memorandum on Thursday committing the company to using the system, known by its Czech acronym EET. However, only new Uber drivers will be required to do so.
In April, Uber also committed to operating a licensed service in the Czech Republic, thereby putting the company on an equal footing with traditional taxi companies, as its drivers will have to register with the appropriate authorities and have their earnings taxed.
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07/12/2018
The minority government of Prime Minister Andrej Babiš won a parliamentary confidence vote in the early hours of Thursday, following a contentious 15-hour session.
Mr Babiš’s new government is the first since 1989 to cooperate with the staunchly pro-Russian and anti-NATO Communists, who pledged to back him in exchange for positions in state-owned enterprises and policy concessions.
His centrist ANO party won nearly 30 per cent of the vote in the October general election, but many parties refused to work with him, as he faces fraud charges for allegedly misappropriating EU funds some 10 years ago.
In June, after months of wrangling, the Social Democrats formally agreed to form a coalition with ANO. Together they have 93 seats in the 200-member parliament, so Mr Babiš had to rely on the backing of the Communists, who have 15 seats, to win the confidence vote. In the end, the government received 105 votes.
Mr Babiš’s first minority government lost a confidence vote in January, after which he was invited by President Miloš Zeman to make a second attempt.
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07/11/2018
Thursday more rain and even thunderstorms are expected in parts of the country, although it should be partly sunny in Prague and much of central Bohemia. Daytime temperatures should be between 19 and 23 degrees Celsius.
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07/11/2018
The chairman of the lower house of parliament, Radek Vondráček (ANO), announced on Wednesday he will pay a 10-day official visit to United States during which he plans to stress the importance of transatlantic ties and commemorate the centenary of the founding of Czechoslovakia.
Mr Vondráček, who will be in the US from July 16 to July 25, said he had been invited to visit the US House of Representatives by his American counterpart, Paul Ryan (Republican).
In March, Mr Ryan had visited the Czech Republic while on vacation, but nonetheless during his semi-official visit addressed the parliament, where he stressed the importance of bilateral ties and solidarity among NATO members.
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07/11/2018
President Miloš Zeman expressed his support for the ANO-Social Democrat minority coalition in a speech at the lower house of Parliament ahead of Wednesday’s confidence vote in Prime Minister Andrej Babiš’s government.
He praised the government’s programme statement, in particular its call for a 10-year investment program into infrastructure, both at the municipal and national level.
Ahead of President Zeman’s speech and formal debate, MPs from the conservative opposition party TOP 09 left the chamber to protest the fact that in exchange for their toleration of his government, Mr Babiš has made policy concessions to the Communists.
Another opposition party, the Christian Democrats, protested by unrolling a banner featuring the Soviet red star and declaring they would vote against any government relying on Communist support.
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07/11/2018
Despite rising wages and low unemployment, only 53% of Czechs aged 30 or over are “satisfied” with their financial situation, according to a new STEM / MARK poll commissioned by Globus hypermarkets.
More men than women said they were “satisfied”, at 58% and 48%, respectively. Those figures are about 10 percentage points higher among people of both sexes who have a university degree, the poll found.
The average gross monthly wage in the Czech Republic rose by 8.6% in the first quarter of this year to CZK 30,265. Adjusted for inflation, real wages grew by 6.6% in annual terms.
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07/11/2018
Consumer prices in June rose 2.6% year on year, driven by higher costs for fuel, electricity, and household rent, the Czech Statistical Office said on Wednesday. Prices for telecommunications, clothing and heating fell in annual terms. Inflation has accelerated for a third consecutive month, following a growth rate of 2.2% y/y in May.
Some analysts predict the Czech National Bank will again intervene to stem inflation by increasing key interest rates. On 27 June, the central bank raised rates for a fourth time in just under a year, setting the two-week repo rate a 1% from 0.75%.
The country’s economy continues to accelerate and record-low unemployment is pushing up wages. Another unexpectedly strong inflationary factor has been the weakening of the crown against major world currencies. The crown is now at its lowest level against the euro in nearly a year, at CZK 25.9/EUR.
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07/11/2018
Unemployment in the Czech Republic fell to 2.9 percent in June, down from 3.0 percent the previous month, according to official figures released on Wednesday. In June last year the jobless rate stood at 4.0 percent.
The number of jobless last month was the lowest since July 1997, while number of vacant posts climbed last month to over 301,500.
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07/11/2018
A minority coalition of ANO and the Social Democrats is set to undergo a vote of confidence in the Chamber of Deputies on Wednesday. Prime Minister Andrej Babiš’s government will in all probability pass that necessary test after the ANO leader brokered a deal with the Communist Party under which they will back the coalition during key votes.
President Miloš Zeman is due to attend the lower house session to express his support for the new government, whose formation he has long advocated.
With the agreement to prop up the coalition the Communists have acquired a share of power at national level for the first time since 1989.
ANO won elections in October but saw a first attempt at forming a single-party government fail when it lost a confidence vote earlier this year.
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07/10/2018
President Miloš Zeman appointed Jan Kněžínek as minister of justice on Tuesday afternoon. He was nominated to the post by Prime Minister Andrej Babiš of ANO. Mr. Kněžínek has hitherto served as deputy chairman of the government’s legislative council.
The move comes a day after ANO appointment Taťána Malá said she was quitting as minister of justice after less than a fortnight in the post. She had been accused of plagiarising part of her university thesis.
A coalition between ANO and the Social Democrats will undergo a confidence vote on Wednesday. The Communists will support the minority government on key votes.
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