In this week’s business news: The Czech Republic will have to build around 13 000 charging points for electric cars by 2020; The greatest number of foreign investors have decided to enter the Czech market last year since the beginning of the economic crisis; ČEZ’s distribution license in Albania has been revokes by the government there; Czech government debt is the eighth lowest in the whole of the EU; Budvar was unable to stop rival Anheuser-Busch from having the right to register the ‘Bud’ trademark in Europe.
Hotel Praha in Prague 6 is due to be knocked down to make way for luxury apartments, the news website ihned.cz reported. The company that has bought the five-star facility, Maraflex, said the hotel had been constructed in such a grand style under the Communist regime that it was not economically viable to run it today. Its employees have already been let go. The hotel is where the Czech national soccer team usually stay when they are in Prague.
The Czech Republic was able to attract 48 companies to the country in 2012, which is the highest number since the financial crisis began in 2008, the financial daily Hospodářské noviny reported on Monday. Hospodářské noviny reported that the increase in the number and size of the investments is most likely due to the improvements in the tax code that came into effect mid-year, which allows for more tax benefits for companies.
As Czechs went to the polls at the weekend, some had more choices to make than just choosing the next president. In seven places around the country, people also took part in local referenda, voting mostly on issues concerning public property. In the district of Prague 7 the referendum was meant to decide on how the town hall should go about putting up a new administrative building for the district. With more than 40% participation, an overwhelming majority rejected a plan to build a new administrative building for the district which many consider
In Business News this week: the Czech public debt reaches a new high; Czechs buy less food, clothes and home appliances; Albania is set to withdraw ČEZ’s licence to operate in the country; up to 40 percent of retailers violate trade regulations during post-Christmas sales; and the popular Czech butter spread will undergo an EU-enforced name change by mid 2013.
Economically speaking, the year 2012 was a difficult one for the Czechs. The country’s economy, heavily dependent on exports to the eurozone, is according to most estimates set for a contraction of around one percent. Wavering demand from the euro area along with weak and fading domestic spending are considered the main reasons behind the decline, not helped by the government’s austerity and tax hikes. In 2013, the eurozone is generally expected to return to moderate growth – but will this be enough to revive the Czech economy as well? That’s a
Liquor sales are reported to have dropped by 10 percent in the wake of the methanol poisonings. According to the head of the Union of Spirits Producers Petr Pavlik, 2012 was the worst year for Czech spirits producers since 1990. Czechs are not only consuming less spirits in pubs and restaurants, they are also shunning home liquor brands in favour of costlier imported labels and drinking more wine and beer. Vodka sales in particular are significantly lower.
In the past weeks in the Czech business world: Almost 3700 businesses had to close in 2012; the state deficit for the last year was lower than the government had expected by 4 billion crowns; online stores had big profits in December thanks to Christmas shopping; the crown may will most likely take a hit in 2013; the Czech Telecommunication Office wants to help more mobile phone operators enter the local market.
The number of both corporate and personal bankruptcies declared in 2012 rose by 46 percent compared to the previous year, according to figures by the company CCB. Nearly 3,700 firms went bankrupt last year; most of them were self-employed people registered as entrepreneurs. Some 60 percent of bankrupt firms were active in the services, trade and restaurant sectors. Meanwhile, nearly 17,000 personal bankruptcies were declared in 2012 which was the highest number since their introduction into Czech law in 2008.
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