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President Vaclav Klaus appointed Miroslav Kostelka as new Czech defence minister on Monday. Mr Kostelka is replacing Jaroslav Tvrdik who stepped down ten days ago in protest at planned cuts in defence spending. A former Czech Army general and until now deputy defence minister, Mr Kostelka is expected to redraft the reform of the Czech military.

With less than a week before the referendum on EU membership is held in the Czech Republic, activists used the week-end to make a number of last-minute attempts at convincing Czechs to go to the polls. While pro-EU gatherings, attracted numerous passers-by, only a small group of people held protests against EU membership in Prague on Saturday and a similar event planned for Sunday in the town of Havlickuv Brod was only attended by two protesters with information leaflets and a group of journalists.

Meanwhile, Prime Minister Vladimir Spidla said on Sunday that it was not certain whether the cabinet would be dissolved if Czechs vote "no" in the referendum. Speaking in a TV discussion programme on the commercial station Nova, Mr Spidla said his cabinet would first have to evaluate the consequences of a "no" vote. The leader of the opposition Civic Democrats, Mirek Topolanek, said in the same programme that a government call for a vote of confidence in Parliament would be appropriate in such a situation. Mr Spidla also agreed to a propsal from the Civic Democrats in which Czechs should approve the European Union constitutional treaty in a referendum if they say "yes" to EU membership.

The Czech Republic goes to the polls on Friday in a two-day referendum on joining the European Union. Unlike in neighbouring Poland or Slovakia, the result will be binding. Should Czechs say "no" to EU membership, the country will have to wait two years before a new referendum can be held.

Prime Minister Vladimir Spidla has called a meeting with Health Minister Marie Souckova, to take place on Monday, in order to discuss the financial situation in the health sector. On Friday, the board of directors of the national health insurance company, Vseobecna Zdravotni Pojistovna, which covers some seventy percent of Czechs, said hospitals around the country will have to pay back money owed, totalling 836 million Czech crowns. This radical step is expected to leave the hospitals affected in serious financial trouble. In most cases, insurance coverage will not be paid for the next two months and hospitals will have to cut staff bonuses and hold off payments to suppliers.

NATO Secretary-General George Robertson has criticised European members of the alliance for failing to devote enough resources to defence spending. In a commentary to appear in the German Bild am Sonntag newspaper on Sunday, Robertson said it was wrong for European nations in NATO to accuse the United States of taking unilateral action if they are unable to improve their military capabilities. Despite there being a lot of talk about modernising, governments are buttoned up when it comes time to pay, he said. As a result, the trans-Atlantic capabilities gap is growing larger and larger. One such example is that the United States has over 200 strategic transport aircraft, while Europe has four. The Czech Republic has been a NATO member since March 12 1999. A new government plan to decrease the state budget deficit has significantly reduced the defence ministry's budget, leading to the resignation of Defence Minister Jaroslav Tvrdik.