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12/15/2006
President Vaclav Klaus has signed a bill increasing the 2006 state budget deficit by about ten billion crowns that are needed to pay out pensions, and a bill postponing new sick leave benefits validity until 2008. The lower house passed the bill on the increase in this year's budget deficit on December 12th. Labour and Social Affairs Minister Petr Necas and Finance Minister Vlastimil Tlusty said that the pension system would have been otherwise short of some 10 billion crowns this month. The 2006 budget deficit will increase to almost 84 billion crowns from the originally planned 74 billion.
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12/15/2006
The Czech military has signed a deal for the purchase of more than 550 new Tatra trucks.The first of the medium-sized vehicles, worth a total of 2.6 billion crowns - the equivalent of around 76 million dollars - will be delivered next year. In 2007, the army will receive 27 of the trucks, the last will arrive by 2009. Previously, it appeared the deal might not be signed because of cuts in finances - but the government in September boosted the military's budget. The new Tatras will replace aging Praga V3Ss as well as former Soviet-built vehicles.
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12/15/2006
The finance ministry has announced that the number of casinos operating in the Czech Republic will be cut by 30 percent from the start of next year as part of a clampdown on the sector - the ministry made the announcement on Thursday. In a news release the ministry stated that it had cancelled authorisation for two firms, which will result in the closing of some 52 sites. According to the report, that will leave 129 casinos in operation.
The ministry refrained from naming the two casino companies that will have their clearance rescinded, or the reasons for the move, but a clampdown on the sector has been expected since 2004. That year in August, a grenade attack on an Israeli-owned casino in the centre of Prague wounded eighteen people.
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12/14/2006
Talks on forming a broad coalition government in the Czech Republic collapsed on Wednesday night when the Civic Democratic Party abruptly ended talks with its main rival -the Social Democratic Party. Prime Minister Mirek Topolanek said that differences over policy issues and the make-up of the cabinet were too great to overcome. The Civic Democrats said they would renew talks on a three party right-wing cabinet with the Christian Democrats and the Greens, in the hope that some rebel Social Democrat deputies would support it.
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12/14/2006
Social Democrat leader Jiri Paroubek has requested a meeting with President Klaus in order to discuss the latest political developments. Mr. Paroubek said he hoped the president would stick to his word and refuse to appoint a government based on one or two turn-coats. The Social Democrat leader said the rival Civic Democrats were entirely to blame for the present situation, since the only way out of the deadlock was an agreement between the two strongest parties.
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12/14/2006
Milos Melcak, a rebel deputy for the Social Democrats who recently left the party's deputies' group in the lower house is threatening to tip the balance of power and support a right-wing cabinet. Mr. Melcak said his party should accept its election defeat and go into opposition before it loses more public support. If supporting a right wing cabinet would get it there, Mr. Melcak said, he would be prepared to do that. Fearful of a rebellion in the Social Democrat camp, the party leader Jiri Paroubek has made all the Social Democrat deputies sign a pledge that they would remain loyal to the party line. He said on Thursday he wanted all rebels expelled from the party.
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12/14/2006
Christian Democrat leader Jiri Cunek has said he will not support a government which would have to rely on a number of turn-coats. Mr. Cunek said the falling out between the two strongest parties was "unfortunate" and that if they could not agree on a stable government his party would prefer to support early elections.
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12/14/2006
Reacting to the latest developments President Klaus said on Thursday that Prime Minister Topolanek could give up his chance to form a government, opening the way for someone else to be entrusted with the task. The second chance at forming a governments ends with a confidence vote, Mr. Klaus said. If Mirek Topolanek should decide not to see it through I would search for a different solution, find a different candidate, the president said. The Civic Democratic Party said this was highly improbable.
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12/14/2006
The Czech Republic's biggest car maker, Skoda Auto, expects to produce around 580,000 cars next year, board member Martin Jahn announced on Thursday. The car maker, part of the Volkswagen Group, said it had manufactured more than half a million cars for the first time in a single year on November 22. Company managers expect the final 2006 figure for production and sales to exceed 530,000 vehicles.
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12/13/2006
The Executive Council of the Civic Democrats is holding a meeting to decide whether the party should form a government without the Social Democrats. Prime Minister and Civic Democrat leader Mirek Topolanek met with the leader of the Social Democrats Jiri Paroubek and the Christian Democrats Jiri Cunek for final government talks but was unable to push through the introduction of a flat tax. Mr Topolanek, who was hoping to come to a compromise by Wednesday evening before he leaves for an EU summit in Brussels, is expected to present President Vaclav Klaus with his proposed list of new ministers on Friday.
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