The average age of dollar millionaires in the Czech Republic is 51 and the country’s affluent regard buying companies as the most attractive form of investment, according to the latest annual Wealth Report produced by the financial institution J+T Banka and quoted in Thursday’s edition of Hospodářské noviny.
The Czech Republic is looking to expand cooperation with China following a recent reset of relations with that country. Two months after a ground-breaking trip to Beijing by the Czech foreign minister, the minister of industry and trade, Jan Mládek, has just visited China in an effort to boost trade, investment and tourism links between the two nations.
The mayor of the town of Dobroviz, Martin Saft, signed a cooperation agreement with developer Panattoni on Monday on the construction of a distribution centre for US company Amazon, Safr told the Czech News Agency. The agreement includes a pledge by the developer to build a local motorway bypass by the end of 2015, to modernise a municipal sewage treatment plant, and to contribute an annual one million crowns to the town.The investment is worth 100 million crowns and should pave the way for some 1,500 jobs. The distrubution centre is to be opened within a year. Panattoni director Pavel Sovička confirmed that preparatory work will begin this week.
The Czech government approved an investment agreement worth 22.8 billion crowns with South Korean tire maker Nexen on Monday, Prime Minister Bohuslav Sobotka revealed. In the first years of the investment project, Nexen will create at least 1,000 jobs in the Žatec industrial zone in the Ústí region. In the future, Nexen could invest up to 40 billion in the zone, which would be the largest investment a foreign company has ever made in the Czech Republic. The prime minister said the government had given a clear signal that the Czech Republic was keen in drawing new investors for projects. The Czech Republic won the contract in competition with strong international rivals, he added. Nexen could launch production in the zone within roughly two years.
The Czech Republic could face trade sanctions from Saudi Arabia over anti-Islamic remarks by President Miloš Zeman, the Czech foreign minister says. Mr Zeman’s comments, linking terrorism to “Islamic ideology” were also condemned by the Organization of Islamic Cooperation but its demands for an apology have been rejected by the Czech head of state.
President Miloš Zeman and Finance Minister Andrej Babiš have agreed that in line with economic growth the state should increase investment in public projects. Mr Zeman, coming off a three-day tour of the Liberec region, said he and the finance minister would meet for talks in the coming days. The Liberec region welcomed the idea of increased funds, such as the planned renovation of local roads and infrastructure. The Transport Minister Antonín Prachař is also to take part in the talks. One problem is that not all projects are developed far enough to be eligible for funding at this point, the Czech News Agency writes.
Foreign companies are increasingly taking their profits out of the Czech Republic, with the country’s figures in this respect considerably worse than those of neighbouring states. Last year over CZK 300 billion of profits left the country, twice the figure seen 10 years ago, the business daily Hospodářské noviny reported on Wednesday.
The Czech Minister of Industry and Trade Jan Mládek is heading for China on Friday night at the head of a delegation of around 30 businessmen and officials. Mládek is due to meet top Chinese officials as well as the leaders of some of the most prosperous provinces. The trip is aimed at not only boosting Czech exports to China but also at trying to stimulate Chinese investment in the Czech Republic, which is currently minimal. The minister added that he hoped for a breakthrough in talks aimed at establishing direct flights from Prague to China with the goal of services to Beijing or Shanghai being launched within 12 months. The centre-left government has sought to reset relations with China by downgrading support for occupied Tibet.
Prague’s Opencard electronic card system will remain working as it is until at least the end of this month after the city authorities reached a deal with the company that operates it. There had been a threat that the firm eMoneyServices would stop issuing new cards from June 18. The two sides are in dispute over the cost of the service and councilors have threatened to do away with the Opencard entirely and return to paper travel passes only. Prague’s transport authority has said if no agreement on continuing with the card is reached it would be ready to have a paper ticket only system in place within weeks. eMoneyServices has significantly reduced its original price for continuing to operate the Opencard and talks with City Hall are still taking place. The card is used for transport and other services.
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