Business News Business briefs

More Czechs commuting long distances for work

The past decade has seen nearly a three-fold rise in the number of Czechs commuting long distances to work, according to fresh data from the Czech Statistical Office. About 660,000 people now live and work in a different district or region. About 170,000 people make the daily commute to the capital, Prague. Observers say the trend is good for the economy, as the Czech workforce has been famously inflexible.

EIU: Prague now ranks world's 55th most expensive city for expats

Prague ranks world's 55th most expensive city In related news, Prague has risen on the Economist Intelligence Unit's list of the world's most expensive cities from No. 75 in 2004 to No. 55 this year. The Czech capital tied with Warsaw and has now passed Toronto on the list. The poll reflects more the prices paid by expatriates than by local people, who are far more inclined to own their homes than to rent.

Over one-quarter of past decades' big investments located in Central Bohemia

One-quarter of new investment projects were located in the region which includes Prague The region of Central Bohemia, meanwhile, has attracted the lion's share of big investments over the past decade, according to the government agency CzechInvest. Since 1994, over one-quarter of new investment projects were located in the region which includes Prague. The Karlovarsky region in western Bohemia attracted just 1 percent of total investments. CzechInvest compiles such data in order to direct new investments to regions with high unemployment, such as the border region with Poland in north Moravia, by offering companies various incentives to settle there.

Czech Republic too slow in spending EU structural funds

The Czech Republic may have to return a large portion of the European Union funds designed in part to even out such disparities between regions. EU structural funds must be spent within two years of their distribution - or be returned to Brussels. Due to chronic delays in launching some programmes, a lack of specialists, and excessive bureaucracy, the Czech Republic has been slow to spend its 10.6 billion crowns in EU structural funds.

Foreign trade surplus of 38bn for first half of 2005

On a more positive note, the Czech Republic posted a foreign trade surplus of 38 billion crowns in the first six months of this year. Over the same period in 2004, the country had a deficit of 7.8 billion crowns. The dramatic turnaround is due in part to large-scale foreign investments made in recent years that are now producing and exporting, such as the Toyota-Peugeot-Citroen car plant east of Prague. The strength of the Czech currency did not seriously affect the foreign trade surplus, analysts said.

Czech crown reaches three-year high against the euro

Speaking of which, the crown reached a three-year high against the single European currency on Thursday morning. The crown was trading at 29.25 crowns to the euro before closing at 29.40. Analysts said the Czech currency would have risen further had it not been for news of a worse-than-expected current account deficit.