• 06/08/2006

    An OECD official has warned the Czech Republic of the risks involved in pushing through a 15-percent flat tax, one of the fundamental reforms proposed by the election-winning right-of-centre Civic Democrats. The head of the OECD's country studies division, Andreas Woergoetter, said the introduction of a 15-percent flat tax could cause a serious revenue shortfall and a flat tax of such an extent would make it necessary to look for savings in other areas. If these savings were not found, he said, fiscal policy could be derailed. One of the Civic Democrats' key policies is a flat 15-percent level of income tax and VAT, renewed privatisations, shrinking the state sector and combating corruption.

  • 06/08/2006

    The OECD has also said that the Czech economy will continue to grow and the country is on track to join the eurozone by 2010 but it must not neglect fiscal and pension reforms. The organisation presented an economic survey of the country on Thursday which said the budget and overall deficit was kept in check last year owing to stronger than expected revenues on the back of economic growth of 6 percent in 2005 and deferred spending. But the report says real steps have not been taken to tackle the overall level of government spending.

  • 06/08/2006

    President Vaclav Klaus has vetoed a bill on compensatory alimony paid by the state for children from single-parent low-income families in cases where one of the parents does not fulfil this duty, a spokesperson for the president said on Thursday. Mr Klaus argues that the bill supports parents' lack of responsibility for their children. The Social Democrats and the Communists have criticised his decision.

  • 06/08/2006

    Czech participants in the Battle of Britain and other war veterans have commemorated the 65th anniversary of the legendary battle in which the Royal Air Force prevented a German invasion of Britain. Some of the Czechoslovak pilots, fighting with RAF, remained in Britain after the war for political reasons. Some 2,500 Czechoslovak citizens took part in the Battle of Britain, including 1,450 pilots, and nearly 500 of them were killed. At present, only a few dozen Czech participants are still alive, their average age being 86. One of the most famous Czech pilots who fought in England Frantisek Perina died a month ago, aged 95.

  • 06/08/2006

    Defence Minister Karel Kuehnl will sign a contract on the supply of 200 armoured personnel carriers with the Austrian armament maker Steyr on Friday, the ministry announced on Thursday. The deal will cost the state a record 24 billion crowns (over 1 billion dollars). The military is expected to receive the first vehicles at the end of next year. They will replace the obsolete Ot-64s, most of which are out of service.

  • 06/08/2006

    Czech tennis player Nicole Vaidisova has been beaten in the semi-finals of the French Open by Svetlana Kuznetzova of Russia. After taking the first set Vaidisova seemed to lose her nerve towards the end of the second, eventually losing 5-7 7-6 6-2. The 17-year-old rising star had never previously reached the latter stages of a Grand Slam competition.

  • 06/07/2006

    The Czech Republic is among those states listed in a new Council of Europe report that names countries suspected of participation in secret CIA operations. The CIA is thought to have secretly transported terrorist suspects across the globe and imprisoned them for interrogation. While the report names Poland and Romania as countries where secret CIA prisons were or are likely located—allegations both countries deny—the Czech Republic is named as a country which allowed refueling stopovers for CIA planes. The Czech Ministry of the Interior denies knowledge of such incidents, and declared so formally in a letter to Amnesty International in April. The Council of Europe investigation was led by Swiss senator Dick Marty, and its report is the result of a seven-month inquiry that began last November following an outcry over allegations of CIA detention centers in central Europe.

  • 06/07/2006

    Czech Television reports that the leaders of the two largest political parties in the Czech Republic met behind closed doors on Tuesday evening. Mirek Topolanek, the leader of the right-of-centre Civic Democrats who won the largest number of seats in last weekend's election, and his rival, Jiri Paroubek, the current prime minister and leader of the Social Democrats, are said to have held an unofficial meeting to exchange their basic negotiating positions in the wake of a tense election. But both men deny that they met on Tuesday and say that they are scheduled to meet, together with their respective negotiating teams, on Friday morning.

    The Civic Democratic leadership is currently negotiating coalition agreements with the Christian Democrats and the Green Party, which if successful, will still make for only 100 seats in the 200-seat lower house. These three parties are due to meet for formal talks on Thursday.

    Meanwhile, President Klaus has invited Mr. Paroubek to Prague Castle for post-election consultations on Thursday. The president made a televised speech last Saturday night, criticizing the immediate post-election remarks of Mr. Paroubek, in which the Social Democratic leader compared the election results to the communist coup of February 1948.

  • 06/07/2006

    Czech President Vaclav Klaus on Tuesday warned the government of outgoing Prime Minister Paroubek not to take any strategic decisions and to act only as a caretaker administration. Mr. Paroubek's centre-left government had "lost its legitimacy" after the conservative Civic Democrats' victory in legislative elections held Friday and Saturday, the president told a news conference in Prague.

  • 06/07/2006

    President Klaus will attend a European Union summit in Brussels next week and present the Czech position on the draft European constitution instead of the prime minister, the daily Lidove Noviny says in its Wednesday edition. The EU constitution will be one of the main topics discussed at the summit. Mr Klaus is strongly critical of the proposed constitution, and the prime minister has allegedly agreed to have the president replace him at the EU summit, since, as he said, Czechs had just elected "a Eurosceptical government".

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