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The Czech Finance Minister, Social Democrat Bohuslav Sobotka, has issued a more optimistic forecast for the country's economy in 2005, predicting growth of 3.8 percent over earlier forecasts of 3.6 percent. A cut in taxes paid by lower and middle-earning groups planned by the ruling Social Democrat party should drive the economy's growth, Mr Sobotka told journalists. The central bank, Czech National Bank, predicts that the Czech economy will grow by 3.2 to 4.4 percent.

The mobile phone operator T-Mobile attracted the highest number of new clients last year, while Oskar Mobil saw the lowest increase in client numbers, the companies said. T-Mobile raised the number by 410,000, Eurotel by 380,000 and Oskar by 280,000 users. At the end of last year, there were 10.78 million active mobile phones on the Czech market. In the last quarter alone, when operators launched massive pre-Christmas campaigns, the operators lured some half a million new clients. At the end of last year, there were nearly 106 mobile phones per 100 people. Experts say that despite that, there is quite a large group of people without a mobile phone. Some 15 to 20 percent of users have more mobile phones than just one.

The Cabinet has approved a bill limiting the number of benefits enjoyed by deputies and senators. If approved by both houses of Parliament, the bill would strip deputies and senators of certain advantages such as free plane tickets for trips around the Czech Republic, free petrol cards and generous travel allowances on trips abroad. By cutting these perks Parliament would save about 4 million crowns a year. The head of the governing Christian Democratic Party who presented the proposal, said that maintaining these benefits in the face of cuts in public spending would be immoral and inexcusable.

The government has moved to prevent abuse of the country's asylum system. In a draft amendment to the asylum law it proposes ways of facilitating the work of the courts and speeding up the asylum process. The bill would also shorten the time period during which the courts must deal with appeals and complaints. At present many asylum seekers are intentionally procrastinating, filing complaints and repeatedly appealing the court's decision in order to buy more time, or even a chance to make an illegal crossing to a neighbouring state. In the course of that time the state has to cover the cost of accommodation, food, health care and pocket money for each applicant.