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A German couple have received probation of eight and six months respectively for providing videos of underage girls stripping over the internet. Their firm would hire girls to strip and provide sexual services to customers in a studio in Kraslice, west Bohemia which would then be offered through live feeds over the internet to customers in Germany. At least six of the girls had not yet reached the age of 18. The couple defended themselves saying that the girls acted on their own will. Both the man and the woman faced three years in prison for threatening the morals of minors and threatening public morality. The court ordered them to pay a fine of 130,000 crowns.

The Chamber of Deputies has approved the government's state budget for 2004, including a record deficit of 115 billion crowns, or more than 4.2 billion US dollars. The budget was supported by 98 out of 198 deputies present, with 95 deputies from the opposition Civic Democratic Party and Communists voting against. The 115 billion crown deficit was proposed by the government of Prime Minister Vladimir Spidla as part of a sweeping, multi-year budget reform package. Parliament has already given a green light to other reform measures including sales tax increases and corporate tax cuts which take effect next month. The deficit, based on a budget with 754 billion crowns in expected revenues and 869 billion crowns in expenses, is around 4 per cent higher than this year's record spending gap. Overall, the prime minister hopes to bring the deficit under control over the next three years so that the Czech Republic can qualify for changing its currency to the euro before 2010. Meanwhile, the approved budget for 2004 must still be signed by President Vaclav Klaus.

Some 300 Czech students gathered in Prague on Wednesday to protest against what they see as government under-financing of Czech universities. Students met at Prague's Charles University before marching to the Senate and the Chamber of Deputies, carrying various banners and signs, while police looked on. In front of the Lower House students handed Waltr Bartos, the head of the Lower House's commission on Education, a document outlining their view on the state-of-affairs. They also addressed the education minister, Petra Buzkova, on her way to proceedings. Wednesday's protest followed a similar meeting on Tuesday that took place in the east Moravian city of Olomouc.

Meanwhile President Klaus also held talks with the Swedish Prime Minister Goran Persson. The two men discussed the possible leasing of Swedish-made Gripen jet fighters for the Czech Air Force. On Monday a Czech commission made up of five ministries recommended to the cabinet that the air force should lease the planes from Gripen. The country must replace its fleet of ageing MiGs by the end of 2004.