Czech arms manufacturer Arms Moravia appears to have exported arms to Congo, despite an international embargo, Thursday's edition of Hospodarske noviny reported. It says another company, Ceska zbrojovka Uhersky Brod attempted to illegally export over five thousand sub-machine guns to the country in the year 2000. The paper says former foreign minister Jan Kavan okayed the latter deal, despite having been made aware of the embargo.
The opposition Communists say they are ready to start negotiations about their support for a Social Democrat minority government. In exchange for their support, the Communists would require a change in the Social Democrats' policy. That scenario is one of several possible resolutions of the current coalition crisis, which broke out over Prime Minister Gross's property affairs in mid-February.
The consortium of firms PPF, J&T, InWay and Tiscali has pulled out from a tender for a state-held stake in Cesky Telecom, a PPF spokeswoman said without giving any reasons. The consortium allegedly offered the highest preliminary bid of 71.3 billion crowns. Still in play for the majority stake in Cesky Telecom are France Telecom with the consortium Blackstone/CVC/Provident and telecoms operators Swisscom, Belgacom and Telefonica.
The Prime Minister Stanislav Gross said the Social Democrats were ready to
continue in the current three-party coalition government. Speaking after
Thursday's coalition meeting, Mr Gross also said he was prepared to
publicly apologise to everyone who, as he said, could have been offended
by his earlier statements regarding his flat financing scandal. The
Christian Democrat Chairman Miroslav Kalousek said his party would not
call on the Prime Minister to resign before the Social Democrat party
congress at Easter. He said it was up to the Social Democrats to resolve
the Prime Minister's scandal themselves.
The Christian Democrats originally called on the prime minister to step down, while many Social Democrats demanded that three Christian Democrats ministers be dismissed from the cabinet. On Wednesday Prime Minister Gross said he will step down if he does not receive the strong backing of the Social Democrats at Saturday's party meeting. Mr Gross has been under pressure for some weeks over his family's private finance, with the affair threatening to bring down the governing coalition.
The Supreme Court has ruled that the Prague High Court should hear the case of former Foreign Ministry general secretary Karel Srba again. The court upheld the recourse filed by the Supreme State Attorney who considered an eight-year sentence for Mr Srba too lenient. Mr Srba is serving a prison sentence for involvement in the preparation of the planned contract killing of an investigative journalist who in her articles pointed to his dubious financial practices at the Foreign Ministry.
The Finance Minister Bohuslav Sobotka has said the costs of the Czech economic transformation between the year 1990 and 2004 exceeded 600 billion crowns (26 billion dollars), with most of the money going to bank and company revitalisation. Further dozens of billions of crowns were paid in support to municipalities and regions, Mr Sobotka said.
Property owners in the Czech Republic intend to sue the state for money
lost through regulated rent, the Civic Association of Property Owners
(OSMD) said on Wednesday. Property owners have lost up to 50 billion Czech
crowns (2.2 billion US dollars) since 2002, as the state's rent-control
system makes it impossible for them to cover basic maintenance costs, the
The decision to take the state to the European Court of Human Rights in Strasbourg comes after that court ruled in favour of a Polish property owner last week, giving Poland six months to change its regulated-rent system to avoid property owners from making losses.
Meanwhile, some two hundred protesters gathered in front of the government offices in Prague to also call onto Prime Minister Stanislav Gross to step down. The protesters, who have been pointing to the results of opinion polls that suggest most Czechs would like the prime minister to resign, also made the same demand last week. They plan to continue with the protests every Wednesday until their demand is met.
The leaders of the three ruling coalition parties have failed to come
to a compromise over the future of the government at a joint meeting in
Prague on Wednesday. The coalition of the Social Democrats, the
Christian Democrats, and the Freedom Union, has been threatening to
break up, following internal disagreement over whether Prime Minister
Stanislav Gross should remain in office. Mr Gross has been in hot water
after failing to explain how he was able to pay for his flat in Prague
six years ago.
Fearing the scandal would damage the coalition's image, the junior Christian Democrats have called onto Mr Gross to be removed from office. However, the prime minister's party, the Social Democrats, say he has their full support and would be willing to lead a minority government without the Christian Democrats. The third coalition partner, the Freedom Union, is not in favour of a minority government and some Freedom Union senators have joined the Christian Democrats in their call for Mr Gross' resignation.
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