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10/02/2007
The European Union has said it is confident that nine of its newest member states will join the block's Schengen border-free zone by the end of the year. Portuguese Interior Minister Rui Pereira, whose country holds the rotating EU presidency, said on Tuesday that the Schengen expansion might take place just before Christmas of this year - i.e. two weeks earlier than planned. The border-free Schengen zone now includes 13 EU countries plus Norway and Iceland. The 2004 newcomers are the Czech Republic, Cyprus, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Slovakia and Slovenia. Many have said that an end to border checks is essential for their citizens to feel part of the EU.
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10/02/2007
In connection with the approaching date of the Schengen enlargement the Czech foreigners' police on Monday carried out a nationwide operation to clamp down on foreigners residing in the country illegally. Over 500 officers checked out dormitories, metro and railway stations, construction sites, factories and gambling houses where illegal aliens tend to hang around. Expulsion proceedings have been launched against 12 foreigners, the circumstances of many others is being investigated. According to a police spokeswoman the search also uncover four wanted persons.
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10/02/2007
Elite troops from the Prostejov military base are preparing for a new mission in Afghanistan, Military Intelligence Service director Ondrej Palenik said during an inspection visit to the base by U.S. Ambassador Richard Graber. If the Czech government and Parliament approve the mission the Prostejov unit would most likely operate in the south or east of Afghanistan. During its Afghan mission last year, the unit took part in more than 30 combat operations and received high praise for its performance. Ambassador Graber said that today the Czech unit was comparable to the US army's special forces.
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10/02/2007
Standard & Poor's Ratings Services said today it had raised its long-term foreign currency credit ratings on the Czech Republic to A from A- and its long-term local currency rating to A+ from A. S&P's credit analyst Kai Stukenbrock said the upgrade reflected the implementation of public finance reform, which will help bring down the Czech Republic's comparatively high government deficit. The ratings are furthermore supported by good economic growth prospects, a well diversified and wealthy economy, and an above-par external position, Stukenbrock said. The higher the rating, the cheaper the country can borrow money.
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10/02/2007
Former deputy local development minister Petr Forman has rejected accusations of EU funds fraud during his time in office. The former deputy minister and nine other people have been charged with taking over a government agency created to funnel EU funds with the sole target of acquiring the cash in its account. The state prosecutor in the case said that by paying one million crowns for the agency the accused had gained access to 144 million crowns then in the account. The accused, who face jail sentences of between five and twelve years, have all pleaded not guilty.
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10/02/2007
The Green Party leadership has failed to agree on who should replace education minister Dana Kuchtova. The minister announced her resignation last week amidst intense media and political pressure over a botched application for EU funds which threatened to paralyze a number of important research and development projects. The Greens, who have a right to the top Education Ministry post within the coalition agreement signed by the three governing parties, are considering both party and unaffiliated candidates.
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10/01/2007
A new survey suggests that Czechs go to the doctor more frequently and use more unnecessary medicines than most other European nations. The research carried out by the Fakta agency found that Czechs pay an average of nearly 16 visits to their doctor per year, which is around twice the rate of neighbouring countries such as Austria and Germany. According to the analysis more than 20 billion Czech crowns or around 1 billion US dollars are annually squandered in the health service due to a waste of resources and corruption. The survey was commissioned by the government, which wants to use it as the basis for an all-party debate on future funding for the public healthcare system.
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10/01/2007
The Czech crown closed trading on Monday on all time record high of 19.28 CZK against the American dollar according to the Patria Online financial news website. The crown has been doing well in recent weeks against the dollar, which has been hit badly by fears of an economic slowdown in America. The low value of the dollar means that commodities such as petrol, gas and electronic goods are now much cheaper for Czechs although there are concerns that the crown's continuing strength against the dollar could hurt Czech exporters.
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10/01/2007
The Czech Ministry of Trade and Industry has announced that the investment-development agency Czech Invest and the export-support agency Czech Trade will pool the resources of their foreign networks as of the beginning of next year. The move will see both agencies use a combined network of foreign offices to provide services to foreign investors and exporters.
The Minister for Trade and Industry Martin Riman stressed that both agencies were not merging but simply operating out of one office in territories where the two of them are represented. He added that the measure was being implemented as part of the government's long-term plans to streamline Czech economic diplomacy and that combining resources in this way would save the country 12-15 million Czech crowns per year.
Czech Invest currently has 9 foreign offices while Czech Trade has 32.The cities where both agencies will use the same office are Cologne, Paris, London, Dublin, Brussels, Rotterdam, Chicago and Chengdu.
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10/01/2007
The Social Democratic Party has threatened to expel former prime minister Stanislav Gross from its ranks if he fails to explain how he acquired shares reportedly worth 300 million Czech crowns or 15 million US dollars in the power company Moravia Energo. Party vice-chairman Bohuslav Sobotka told journalists at the weekend that action would be taken against Mr Gross if he could not satisfactorily rebuff allegations that he used insider information gleaned while in politics to acquire the shares for a fraction of their estimated market value.
The former primer minister denies any wrongdoing and says the price of the shares quoted by the press is massively overvalued. Mr Gross left politics two years ago after failing to explain where he got 1.2 million crowns to purchase a luxury apartment in Prague.
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