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01/24/2006
The Czech Republic on Tuesday opposed Austria's compromise proposal on new VAT rates for the 25 countries of the EU. Prague together with Warsaw remain critical of the deal because they are eager to extend exemptions on VAT rules that were given to them when they joined the EU in 2004. Hungary and the Baltic states have said they are ready to accept the compromise solution. Like all issues regarding tax harmonization in the EU, the list of exemptions from normal minimum VAT rates must be unanimously approved by all member states.
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01/24/2006
A Prague district prosecutor has said he is shelving a probe into the former prime minister Stanislav Gross' private finances. Prosecutor Julius Lachnit said no new facts or evidence had come to light which would justify further investigation. Gross resigned as prime minister last year after coming under media pressure to explain where he obtained the money to buy his luxury apartment in Prague.
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01/24/2006
Five heated army tents have been erected on Prague's Letna Plain to give homeless people temporary shelter in the current freezing weather. The cold has already killed 16 people in the Czech Republic. Asylum centres are overflowing and an estimated 100 to 200 people are still out in the cold. The tent-town for the homeless will provide shelter for over 100 people as well as a hot meal for anyone who turns up. It will remain in place for as long as necessary.
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01/23/2006
Final talks with the South Korean automaker Hyundai over the location of its new car plant should be completed on Thursday. A Hyundai delegation arrived in the Czech Republic at the weekend. Baring last-minute surprises, the carmaker is expected to build its new 1.2 billion dollar plant in Ostrava. The main topic of discussion is what investment incentives the Czech government is willing to extend to parts suppliers for Hyundai. The Czech Minister of Industry and Trade, Milan Urban, has said the deal could be officially sealed by mid February.
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01/23/2006
The Czech national rail operator Ceske drahy has said it would ask Italy's Alstom for nearly 700,000 US dollars in compensation for having delivered faulty high-speed trains. At present, only one of the seven Pendolino trains supplied by the Italian company is in operation. Four were taken out of service due to technical problems and a fifth is undergoing testing.
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01/23/2006
Severe cold caused a failure at the Temelin nuclear power plant Sunday night, forcing the plant to partly disconnect from the electricity grid for five hours. The temperature at Temelin, in southern Bohemia, fell to around minus 20 degrees Celsius, and the cold affected a sensor that automatically triggered a power reduction, a Temelin spokesman said. Temperatures reached minus 30 degrees elsewhere in the Czech Republic and the cold was blamed for the death of two homeless men.
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01/23/2006
The German automaker Volkswagen has hired two independent ombudsmen charged with rooting out corruption. The move is seen as a direct response to a fraud and bribery scandal last year involving a high-ranking official at Volkswagen's Czech daughter company, Skoda Auto. The official, a German high flyer who was seconded to Skoda as director of labour affairs, along with a senior personnel manager in Wolfsburg, were alleged to have set up fake companies in the Czech Republic, India and elsewhere to defraud local authorities seeking business with Volkswagen.
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01/23/2006
In women's tennis, the Czech star Nicole Vadisova failed to make the quarter-finals of the Australian Open on Monday. Third seed Amelie Mauresmo of France soundly beat Vadisova 6-1 6-1 in just 52 minutes. Czechoslovak-born Martina Hingis of Switzerland, a three-times champion of the open, has reached the quarter-finals and will next take on Kim Clijsters of Belgium.
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01/22/2006
The concentration of cyanide in the river Labe has dropped below the permissible limit of 10 micrograms per litre. Experts from the river administration say that the present levels no longer present a threat to fish or river life. The concentration of cyanide is gradually declining due to the higher inflow of water from the Vltava river and the fact that river management has been increasing the flow from several reservoirs. The cyanide leak into the Labe from a chemical plant in central Bohemia on January 9th killed many tons of fish in the river and caused concern in neighbouring Germany where the Labe /Elbe/ river flows. Environmentalists say that the full extent of damage to river life will only become apparent in the spring. The chemical plant responsible faces a fine of up to 10 million crowns.
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01/22/2006
The South Korean car maker Hyundai has confirmed a major investment in the Czech Republic. According to the Czech internet daily Novinky, Hyuandai said in a letter to the Turkish industry minister, that it had decided to build its new car plant in Nosovice, north Moravia, mainly thanks to the lower tax burden. A Hyuindai spokesman later confirmed that the firm was sending a delegation to the Czech Republic to sign a contract worth 30 to 40 billion crowns. The new plant is expected to decrease unemployment in the region. Scheduled to begin operation in 2008 the plant will employ some 3,000 people and provide more jobs for people in supplier companies.
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