Daily news summary News

08-11-2005

Farmers agreeable to land swap deal at proposed Ostrava site for $1.2 billion Hyundai plant

Farmers in the region of Ostrava where the South Korean carmaker Hyundai is considering investing some $ 1.2 billion for a new car plant have agreed in principle to a land exchange --and unspecified compensation from the government -- for making the move. Prime Minister Jiri Paroubek had hinted last month that the state could force the farmers to accept a deal. The stand off mirrored an obstacle that the Hyundai affiliate Kia Motor faced when in 2002 it tried to buy land for its first European factory, in neighbouring Slovakia.

Agriculture Minister 'given one week' to make structural, personnel changes at Land Fund

Prime Minister Jiri Paroubek has reportedly given Agriculture Minister Petr Zgarba a one-week deadline to introduce new controls to make the sale of state-owned land more transparent. State officials - including Minister Zgarba, who is also chairman of the Czech Land Fund - are suspected of having sold state property at well below market rates, possibly for personal gain. No charges have been filed, but two Fund employees were been dismissed earlier this week, and Mr Zgarba is to replace his vice chairman. An internal audit at the Land Fund is underway.

Main opposition Civic Democrats to stress 'pro-family' flat tax in election campaign

Regional election leaders of the main opposition Civic Democratic Party have convinced the party leadership to revise its campaign platform to place a "family" emphasis on the introduction of a flat tax. The flat tax and a universal social benefit could become part of the pro-family policy project, said party deputy Vlastimil Tlusty. The change in tactics comes on the heels of the passage of a popular tax-cut proposal drafted by the ruling Social Democrats. The proposal - which would benefit people earning less than 30,000 crowns per month, or roughly 9 out of every 10 taxpayers - has undercut the appeal of a flat tax, political analysts have said. The centre-right Civic Democrats are now expected to concentrate on presenting themselves as champions of small businesses through other proposals. These include efforts to reduce bureaucracy at all levels of government, and the fight against corruption.

Year-on-year inflation rose to 2.6 percent in October - the fastest growth this year

Year-on-year inflation rose to 2.6 percent in October, the fastest growth so far this year, the Czech Statistical Office said on Tuesday. Inflation had reached 2.2 percent in September. The main reason for the jump was higher fuel costs. The Czech National Bank had surprised the markets last week by raising rates a quarter point, to 2 percent, in an effort to curb inflationary pressures. Many economists now predict inflation could reach 4 percent next year and expect the central bank to raise interest rates another quarter point in January.

Interpol: Fifty Vietnamese women 'forced into prostitution' in Czech Republic return home

The Vietnamese branch of Interpol and Czech police have announced the safe return home of scores of young women tricked into prostitution in the Czech Republic and elsewhere in Eastern Europe. Vietnamese media reported that among them were some fifty women and girls who had been rescued from illegal brothels in the Czech Republic. Interpol said that organised gangs had made victims believe they'd won a free trip abroad. Several alleged gang members have been arrested.

President Klaus calls on India to further liberalise its markets

Czech President Vaclav Klaus, now in India on an official visit, has urged the South Asian country to further liberalize its economy, saying Czech businesses are keen to invest in India's energy, information technology and glass industries, the Associated Press reports. Two-way trade between India and Czech Republic has risen to $500 million thus far in 2005 from $150 million over the same period in 2001. Speaking in New Delhi, Mr Klaus also said his country supported India's bid for a permanent seat on the United Nations Security Council.

Weather

Thick cloud cover, temperatures in the low teens, and light rain is in the forecast for the next few days.

08-11-2005