Government approves 14.4 billion arms deal

The government approved on Monday a purchase of 107 Austrian armoured vehicles Pandur for the Czech army. The deal will cost to 14.4 billion crowns, or more than 640 million US dollars. Prime Minister Mirek Topolánek told reporters that a number of Czech companies will take part in the production. The Czech government first negotiated with the Austrian manufacturer Steyr in 2003; four years later the original contract was cancelled as the Austrian arms producer was unable to comply with its conditions.

Author: Jan Richter