News News

PM to decide on cabinet reshuffle this week

Prime Minster Mirek Topolánek said on Tuesday that he plans to announce changes in the centre-right coalition government before the end of the week. A reshuffle has been on the cards ever since the coalition’s crushing defeat in regional and Senate elections in October but the prime minister had postponed the move until his own party confirmed his mandate as party leader and head of government two weeks ago. The three party ruling coalition has been racked by infighting and defections which have weakened its position in the lower house, making it difficult to push through further reforms and undermining its position ahead of the EU presidency.

Christian Democrats want euro-adoption timetable by May

The Christian Democrats of the ruling coalition want the government to set a timetable for euro adoption by the end of May at the latest. Czech exporters have long been pushing for the move but so far the government has been reluctant to make a commitment. Prime Minister Topolánek says the time is not yet ripe for such a commitment in view of the global financial crisis, the need to complete economic reforms and stabilize the country’s public finances. Last year Finance Minister Miroslav Kalousek of the Christian Democrats proposed that the euro be adopted in 2012, but the government later backpedaled on the proposed date. The opposition Social Democrats say 2012 seems like a realistic target. Slovakia, the Czech Republic’s eastern neighbour, will adopt the euro as of January 1, 2009.

Czechs offer to assist Middle East peace talks

The Czech Foreign Minister Karel Schwarzenberg has said that the Czech Republic could organize not only an EU-Israeli summit during its EU presidency but also a summit between the EU and Palestine. He made the statement after talks on Monday with visiting Egyptian Foreign Minister Ahmed Aboul Gheit. The two ministers discussed the Israeli-Palestinian conflict, the situation in the Mediterranean and the priorities of the Czech Republic's upcoming EU presidency. Israel has said that Prague can assist the peace process during its presidency by intensifying the EU role as mediator in the dialogue between Israel and Palestine. At the same time, Israel has made it clear that it is mainly the countries in the region that bear the responsibility for peace.

The Czech Prime Minister Mirek Topolánek said during a visit to Israel earlier this year that he would welcome a more active role by the EU in the Middle East peace process. The Czech Republic takes up the EU presidency on January 1.

French President Sarkozy critical of Czech Republic

French President Nicolas Sarkozy on Tuesday criticized the Czech Republic in the European Parliament for the fact that EU flags had not yet been hoisted on all public buildings in the country. He also lashed out at President Vaclav Klaus saying that his treatment of a visiting delegation of the European Parliament had been unacceptable. Several MEPs on Tuesday also criticized the fact that Prague Castle had seen fit to publish a transcript of the talks between the Czech president and the visiting EP delegation. President Klaus asked for the transcript of the talks to be made public, saying that he had been treated in an aggressive and disrespectful manner in particular by the head of the Greens group Daniel Kohn-Bendit.

Václav Havel criticizes EU for being overly cautious towards Russia

Former Czech president Václav Havel on Tuesday criticized the European Union for what he called an "overly cautious" policy towards Russia and accused it of putting economic interests ahead of human rights. Speaking at a conference organised by the pro-EU civic group Yes For Europe in Prague, Mr. Havel said that Russia was a new type of authoritarian regime that is far more sophisticated than a classic dictatorship and that it was extremely important for the EU to communicate with it openly, for instance to ask about the politically motivated murders of certain Russian journalists.

In early December, the 27-nation bloc resumed key partnership talks with Russia, aimed at boosting economic and diplomatic ties three months after they were frozen in the wake of the conflict between Russia and Georgia.

Denmark to open its labour market to Czechs

Denmark will fully open its labour market to Czechs, Slovaks and other EU newcomers as of May next year, the Danish labour ministry said on Tuesday. Czech officials have welcomed the decision. The Czech Republic has long advocated the removal of barriers to labour across the EU. Czechs are still denied free access to the labour markets in Germany, Austria and Belgium.

Jiří Drahoš to become next president of the Czech Academy of Sciences

Jiří Drahoš, 59 is to succeed Vaclav Paces as president of the Czech Academy of Sciences. Mr. Drahoš, who is currently the academy’s deputy-president was elected to the post on Tuesday and will take up the post in March of next year when Mr. Paces’ term in office ends. Jiří Drahoš is an expert in physical chemistry with over 60 scientific works to his name.

Prices dip at Prague Stock Exchange

The Prague Stock Exchange weakened during morning trading on Tuesday, with the PX index losing more than 1 percent to 826.9 points. Erste Bank came under significant pressure losing 2.05 percent to 3,680 crowns while Komerční banka shed 2.25 percent, trading at 2,950 crows against Monday's close at 3,018. The biggest loser was the tobacco company Philip Morris, which lost 2.86 percent to 6,361 crowns.

Weather

The mild spell with day temperatures reaching 8 degrees Celsius should end in a day or so, but we can expect sunny skies and day temperatures should not dip below zero.