Business News

In Business News this week: Finance ministry cuts funds earmarked for servicing national debt; Czech Statistical Office improves figures on Czech economy growth; Czech Republic wins clearance for key transport projects to go ahead; New bill means large retail outlets must close on state holidays; Czech arms makers see healthy growth in exports; ČEZ seeks to claw back billions from Dukovany closure;

Finance ministry cuts funds earmarked for servicing national debt

Andrej Babiš, photo: Filip Jandourek

The Czech Ministry of Finance has cut the estimated cash set aside this year for servicing the state debt. The total has been reduced to 337.4 billion crowns from 342 billion crowns. Last year the total was 311.2 billion crowns. The cut is the result of the latest mid-term economic outlook and April’s macro-economic estimate. The expected public deficit for this year has been set at 70 billion crowns.

Czech Statistical Office improves figures on Czech economy growth

The Czech Republic’s Gross Domestic Product rose by 4.5 percent year-on-year in 2015 and by 2.7 in the previous year, according to the revised data released by the Czech Statistical Office on Thursday. The revised figures are slightly higher than the previous estimates, according to which the Czech economy grew by 4.2 percent last year and by 2 percent in 2014.

Czech Republic wins clearance for key transport projects to go ahead

The Czech Republic has won clearance from the European Commission to proceed with 10 large transport and infrastructure projects without the need to launch new Environment Impact Assessments (EIAs). Brussels has had problems with the fact that dozens of Czech projects were given approval under old assessments that in some cases pre-date the country’s accession to the European Union in 2004. The news was given by prime minister Bohuslav Sobotka, currently in Brussels for a European Summit. Some of the key projects have a European as well as Czech dimension.

New bill means large retail outlets must close on state holidays

Photo: Tomáš Adamec

Large retail outlets in the Czech Republic will have to close on seven state holidays every year after the Chamber of Deputies approved a Senate bill implementing the change. The lower house was voting for the second time on the matter; it had originally voted that big shops be closed only on three state holidays but the Senate insisted that it reconsider its original wording. It must now be signed by the president. The ban – which applies to stores with floor space of 200 m2 or more – has been condemned by the Chamber of Commerce and was rejected by the right-wing parties in the lower house.

Czech arms makers see healthy growth in exports

Czech arms manufacturers increased their exports last year to CZK 15 billion, according to figures released on Tuesday by the head of the Defence and Security Industry Association of the Czech Republic, Jiří Hynek. In 2014 the industry’s exports totalled CZK 11.8 billion. Mr. Hynek attributed the jump to a marked increase in sales to the United States and the European Union. Czech arms makers export 90 percent of their products.

ČEZ seeks to claw back billions from Dukovany closure

Dukovany, photo: Nostrifikator, CC BY-SA 3.0

Czech electricity producer ČEZ has began proceedings to reclaim billions of crowns lost after the prolonged closure of three out of four of its nuclear reactors at the Dukovany plant following faulty safety checks on pipes. Czech Radio reported that proceedings have begun against engineering company Škoda JS to reclaim around 3.5 billion crowns. Škoda JS recruited a sub-contracted to carry out X-ray checks on pipes at the plant which were later found to be flawed. Much of the reactor was closed in late 2015 and into 2016 as a result. Škoda JS has denied being guilty.