Business News

New social benefits to parents of young children. National debt increases by 100 billion crowns last year.Kapsch confirmed as company to build electronic toll system. Aero Vodochody sale postponed.

New social benefits to parents of young children

The Chamber also voted this week to increase one-time payouts to new mothers from 8,750 crowns to 17,500 crowns, or about 750 dollars. This social transfer is available to all parents of newborns and is meant to cover the costs of having a baby. The parents of children entering first grade will also receive 1000 crowns under the new bill in order to cover the costs of school supplies. The bill is expected to cost the state budget 1.5 billion crowns.

National debt increases by 100 billion crowns last year

The increase in spending comes on the heals of the Finance Ministry announcing this week that government debt increased by 100 billion crowns last year, or about four billion dollars. Most of this increase came form the budget deficit, which was 56.4 billion crowns. Analysts say that at a time when the economy is growing at a record pace, the government should strive to lower the budget deficit in order to cut the debt.

Kapsch confirmed as company to build electronic toll system

The Anti-Trust Authority this week confirmed Austria's Kapsch as the winner of the tender to install an electronic toll system on Czech highways. Kapsch was announced the winner of the tender some time ago, but a complaint was filed with the Anti-Trust Authority by Mytia and Austostrade, which had formed a consortium to vie for the contract. Once the contract between the Transport Ministry and Kapsch is signed, the company will begin building the toll system, which will be put into operation on 2,100 kilometers of road in 2007.

Aero Vodochody sale postponed

Finally, the government suspended the sale of defense contractor and aviation company Aero Vodochody until July 17. Eco-Inevestment and Oakfield, Aero Kilcullen Consortium, Benson RPG, Cesky letecky prumysl and a consortium of Czech financial firms PPF and J&T have submitted preliminary offers for the company.