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President Vaclav Klaus - speaking during an official visit to Sweden - has said the disadvantages of the euro outweigh the advantages. In a speech to the Swedish Parliament, President Klaus said the euro was created purely for political reasons and not economic necessity. Mr Klaus also said that in his opinion the results of deeper European integration had fallen well below expectations. The Czech government says it wants the country to adopt the single European currency by the end of the decade. Sweden is one of three European Union countries not to have adopted the euro.

A commission of experts has advised the Czech government to accept Sweden's offer of Gripen fighter jets to replace the Czech Republic's aging fleet of Soviet made MIG-21s. The commission assessed five offers in all. The US, Belgium, and the Netherlands offered second-hand F-16 planes while Canada competed with its two-engine F-18s. Sweden got the edge over its rivals by offering brand new places at a leasing price ten percent lower than the threshold put down by the Czech Defense Ministry. The Czech government is to make a final decision by the end of the year. If the proposal is approved 14 Gripen jets will replace the aging MIG 21s in 2005.

Czech ambassador to Kuwait Jana Hybaskova, who was recalled on Friday, insists on her criticism of the government regarding the decision to withdraw the Czech Army field hospital from Iraq. Foreign Minister Cyril Svoboda said Jana Hybaskova was removed from the post after persistent criticism of her government's policy in Iraq. The government decided to withdraw the field hospital from the Iraqi city of Basra by the end of the year, sending 80 military policemen to Iraq instead. Mrs. Hybaskova believes the withdrawal of the field hospital harmed the Czech Republic, because it comes at a time when in her view, the presence of the hospital could have helped the Czech Republic take an active role in the economic transformation of southern Iraq.

President Vaclav Klaus has vetoed the first provision of a package of bills introduced by the government in an effort to reform the public finances. On Wednesday Mr Klaus's office said the president had refused to sign a bill increasing health insurance payments for the self-employed. However, Prime Minister Vladimir Spidla said he was optimistic that the governing coalition would unite to override the president's veto when the bill comes before the Chamber of Deputies for a second time. Mr Spidla has staked his political future on the financial reforms, which were introduced in reaction to a record budget deficit.