News

The head of the Social Democrats, Jiri Paroubek, has called on Civic Democrat prime minister Mirek Topolanek to resign, following the launching of an investigation into alleged fraud at a company formerly co-owned by Mr Topolanek. It was reported on Friday that the police were looking into allegations the prime minister and his then partners in the firm VAE obtained a 67-million-crown loan (3 million USD) from a bank but did not repay it in its entirety. Mr Topolanek says the investigation does not concern him directly.

Work is due to begin this month on a new stadium for Slavia Prague football club, the club has announced. The new arena should have a capacity of 21,000, and could be used for Czech national team games, a Slavia official said. The long-awaited project should be completed in March 2008.

The European Union is asking the Czech Republic and six other EU states to raise the sales tax on beer. The increase would equal about one-fifth of the current tax rate and come into effect sometime between 2008 and 2010. Brussels is suggesting the change because EU analysts say that beer prices have not been affected by general inflation in recent years, and experts say higher prices are also a way to combat alcoholism. Czech brewery owners are opposed to the proposal.

Units from the anti-corruption police division arrested Petr Smetka in Prague mid-day Friday, on the basis of a court order. Mr. Smetka was transported to Pankrac prison where he begins serving a 12-year sentence for his role in an embezzling scheme. According to the Prague Municipal Court, the extraordinary order to have Mr. Smetka taken into custody came after he disobeyed a June court ruling, preventing him from accessing assets set aside to compensate clients who lost money when H - System, a construction company that Mr. Smetka founded, went under. At least 1095 people lost a total of over 980 million crowns (nearly $44 million US) in the fraud scheme.