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Despite having voted for a package of reforms approved in the lower house on Tuesday, Finance Minister Miroslav Kalousek has now split with the government on how these reforms should be implemented. Mr. Kalousek proposes a further taxation of employees from 2009 by increasing tax-exemptions; however, the biggest party in the coalition, the Civic Democrats, wants to reduce personal income tax from 15% next year to 12.5% in 2009. The Civic Democrats have rejected Mr Kalousek's proposal, calling it a provocation and violation of the coalition agreement.

Experts from UNESCO have expressed their concern about the planned construction of high-rise buildings on Prague's Pankrac Plain. The committee has recommended Prague to reconsider the building of new skyscrapers, which, according to some conservationists, could harm the city's horizon. The Czech Republic should submit a report on the protection of Prague's historical centre, which was included on the UNESCO world heritage list in 1992, and a plan of building activities at Pankrac district, by the end of January 2008.

The Czech Republic's footballers drew 1:1 with Austria in a friendly game in Vienna on Wednesday night. Their only goal came from Jan Koller, who extended his Czech record goals tally to 49. In September the Czech Republic take on San Marino and Ireland in qualifying matches for next year's European Championships.

The Czech government has approved the sending of a Czech provincial reconstruction team to Logar in south-eastern Afghanistan. The Czech defence minister, Vlasta Parkanova, said military personnel in the province could work in conjunction with civilian specialists sent by the Czech ministries of foreign affairs, industry and transport. The plan now has to go before parliament.