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Press ReviewPress Review
Making headlines in the papers today - claims that British Prime Minister
Tony Blair is worried about an influx of Czech Romanies following EU
enlargement, a dispute in the cabinet over registered partnerships for gay
couples, and denials from Labour and Social Affairs Minister Zdenek
Skromach that the government has reached an agreement over regulated rent.
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Current AffairsRegulated rents to rise by 10 percent in three consecutive years
The ruling coalition has agreed on a government regulation which would send
the price of rents in regulated tenement flats up by 10 percent in three
consecutive years. At the end of that time - described as a transitional
period - Parliament should debate a new law on regulated rents. Although
the coalition is happy with the compromise -landlords accuse the
government of dragging its feet and refusing to take measures which would
help to correct the distortion of the Czech housing market. We asked
economic analyst Radomir Jac what he thinks of the new government
regulation:
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Press ReviewPress Review
All of Wednesday's Czech dailies lead with different stories, with Mlada Fronta Dnes, for instance, reporting that rents are falling in Prague and
remaining static in other parts of the country. The news is especially
good for those renting larger, more up-market flats, says the daily. The
reason for the decline in rents in the capital is that so many new flats -
around 2,000 - are being built every year. Added to that, it's now easier
to get a mortgage at rates which compare favourably with monthly rent.
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Press ReviewPress Review
A mix of headlines on the front pages - Mlada Fronta Dnes leads with a new
opinion poll claiming support for Prime Minister Vladimir Spidla has
fallen from 75 percent in September to just under half that today.
Meanwhile Lidove Noviny says flat prices have risen by 25 percent in the
first quarter of this year. And Hospodarske Noviny warns of a brain drain
to Brussels as the nation's finest look for new jobs with the European
Union.
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Current AffairsCzech people face changes in laws and regulations as of July
July the 1st does not only mark the beginning of school holidays in the Czech Republic, but in several laws and regulations changes have been made that will affect most Czechs. Alena Skodova has the details:
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Current AffairsScheme offering cheap loans for young flat-builders gets underway
The housing situation in the Czech Republic has long been a painful issue with no viable solution in sight. Over the past few years, Czech governments have come up with various schemes to support housing construction and make small, so-called start-up flats available to young families. Just a few days before the June general elections, the Social Democratic government has introduced low-interest loans for young people but, as Alena Skodova reports, there is a catch.
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Current AffairsRent-dodgers owe millions to Prague council
There are more than 10,000 families in Prague who live in council flats but never pay their rent. They can get away with it for months or years even after they are ordered out of the flat by the courts, as reports.
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Talking PointThe State of the Rent System in the Czech Republic - Part II
In last week's Talking Point I examined some of the peculiarities of the rent system in the Czech Republic, a situation that is certainly not ideal. Listeners may recall that the partial continuation of rent control in the Czech Republic's housing market has created a paradoxical rift between tenants in the country. Tenants in search of new leases today are left with little choice but to pay much higher rents on an open market than long-term tenants who continue to enjoy similar, often identical apartments for as little as a third, even a quarter, of the price. The reason? The Czech Republic's lawmakers, afraid of the social upheaval full liberalization might bring, have shied away from finding a permanent long-term solution to the problems of the housing sector. Despite the fact that Czech Constitutional Court ruled the system of rent control discriminatory two years ago, parliament was unable to come up with a solution. The court gave the country's legislators till January 2002 to come up with a replacement, but the proposed bill was struck down for offering little in the way of reform. The housing system to date continues to tolerate the paradox that some, often very well off, households continue to live under low, controlled rent, while newer households starting out must struggle to find a reasonable lease. It is an ideal environment for a black market to flourish. The roots of the problem, according to public Ombudsman Otakar Motejl, are ones that historically lie with the former Communist regime:
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Talking PointThe State of the Rent system in the Czech Republic - Part I
With just three months to go before the Czech Republic holds parliamentary elections one of the issues certain to resurface in pre-election debates is the question over regulated rent vs. deregulation. Although most of the parties in parliament are dedicated to pushing some form of further reforms in the housing market, there is still a marked difference in possible solutions that would, once and for all, create a level playing field for all involved, tenants and landlords alike. has a look at the continuing "saga" of rent regulation vs. deregulation in this week's Talking Point, part one of a two part series.
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