Radio Prague: Current Affairs

Radio Prague

MARCH 4, 1999

C U R R E N T A F F A I R S

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Havel calls for creation of pan-European state

On a state visit to France, President Havel on Wednesday shared his vision of a pan-European federal state, a union of common values as well as economic interests. After the end of the Cold War, he said , it was time to review Europe's role and plan for a better future. More from Daniela Lazarova.

In an impassioned speech to the French Senate the Czech president urged the European Union not to turn its back on the former communist states, saying that now was the chance to instill a truly fair balance to the Continent. "If one applies a policy of mistrust to the new democracies, fearful that they will eat too large a share of the cake, or fearful of novelty, then Europe will once again be divided." Havel told the assembly. The Czech president criticized those who only saw the EU as an economic entity designed merely to take on the United States and Asia. "There is no point in seeing the worth of all human action in just a continuous growth of GDP" he said "I want to plead for European construction based on a marriage of two traditional European values, which are important but often betrayed: humility and responsibility. He described the future alliance as a society for the defense of the best values to have emerged in Europe such as respect for human rights, equality and humanitarian ideals. Each nation should contribute its own identity, Havel continued and all European countries fulfilling the necessary conditions should be able to join the proposed state. Looking ahead Havel noted that "sooner or later the development would lead to the creation of a system with two chambers as in the case of classic federal states" and suggested that apart from a Parliament elected by the people a smaller council should be created representing the member states -in which every country had the same rights. The EU Constitution would have a preamble describing the meaning and idea of the Union, defining its fundamental bodies, their relations and powers. The long term value of such a union, in terms of peace, stability and prosperity would be well worth any short term losses or sacrifices, the president concluded.

Government moves to liven up stale housing market

At its Wednesday session, the Czech cabinet adopted a measure to liven up the stale housing market. By easing the conditions for granting an interest-free loan, it wants to encourage construction of small-area flats for low-income young families. Vladimir Tax reports.

Until now, young Czech families with low and average income had little chance to solve their housing needs. Although the latest government motion is aimed at helping them, the situation is still far from satisfactory.

The cabinet has changed the conditions for granting a zero-interest loan of up to 200,000 CZK which can be used for purchasing a new flat. This support was introduced by the previous right-wing cabinet. But due to liberal conditions, the amount of money allocated in the state budget for providing these loans last year was used up within the first six months and further applications were left over for the next year.

Under the new conditions, the loan consists of 50,000 crowns plus 3000 crowns for each square metre of the area of the flat. The smallest flat for which the loan can be applied for is 34 square metres, and the full 200,000 crows applies to flats larger than 50 square metres, compared to 80 metres in the past. Just for illustration, for a 50-square metre flat, the loan represents something between 15 and 20 percent of the price.

Another change is that the interest-free loan is bound to a mortgage or other bank loan. This is because due to more liberal conditions in the past, it was allegedly applied for by many families which in fact did not need it.

Although changing the conditions for providing the zero-interest loan is considered as a step in the right direction, it is only a partial solution which can help a limited target group. Experts agree that the main problem is the virtual non-existence of a housing market which can emerge only after the government lifts regulation on rents.

River levels on the rise in the Czech Republic

The water levels of many Czech rivers have been on the rise due to thawing snow and continued rain. The stretch of the Elbe between the towns of Hradec Kralove and Pardubice threatens to break out of its borders and the highest degree of flood alert has been declared in the area. The situation is much the same on the Cidlina and Orlice rivers in Eastern Bohemia and on some smaller rivers throughout the country. Last night, the mood in the city of Usti nad Labem was quite tense, as the Elbe's level has reached more than six metres - and the main road between Prague and Decin leading to Germany had been closed. Water management officials warn that if the persistent rain continues, the level of the Elbe in Usti could reach 7 metres within 24 hours, thus exceeding by far the highest flood alert level. There is also a danger that people in the areas might start panicking - the memory of heavy floods last year and back in 1997 is still too fresh. Some of the elderly people have admitted they couldn't survive another onslought. Fortunately, the water management says river levels are increasing very slowly, and people really do have enough time to prepare. Many people have chosen to remain in their homes so as to better protect their property and be there in the event of an evacuation. In Lostice in the Sumperk region in Northern Moravia, many people are on paid leave emptying out cellars and packing valuables away into crammed atticks. In Vestec in Eastern Bohemia, local inhabitants have been filling sacks with sand, to prevent the local river from spilling into the village.

Is Czech Rum not Rum?

The popular traditional Czech-made rum which has entered the hearts of many Czech citizens will most probably have to change its name. Dita Asiedu has the details:

"The problem is that, according to EU regulations, all spirits that are labeled as rum have to contain sugar-cane extract", explained Martin Petrasek, director of Stock Plzen which is the countries biggest producer of rum. Rum produced in the Czech Republic does not contain it and therefore cannot be introduced to EU countries, under that name. Petrasek notes that there are two solutions to the problem; either sugar-cane extracts are added to the ingredients of Czech-made rum or it will have to be called differently.

Vladimir Steiner who is the president of the Union of Alcoholic Beverage Producers revealed that some companies have already begun brainstorming. "It can be called "Tuzemak", for example, or anything else that will reach the people. There is no limit to imagination", Steiner said. So far, the suggested name "Tuzemak" which can be translated into "locally- produced", seems to be most popular.

Before it attained EU membership, Austria had the same problem. Many companies solved it by simply leaving out the name "rum" on its labels and giving it the name of the producer. Stroh, for example, which is one of the most popular rum producers in Austria, simply calls it Stroh as that alone is enough to indicate that it's rum.

"I don't think that we will come up with anything different", said Petrasek. "The rum that we are used to is produced by traditional methods that date back to the Austro-Hungarian Empire. So this kind of rum is only produced in Austria, Slovakia and the Czech Republic. That is why only a few people will agree to a change in the production process or taste", Petrasek concludes.

But Czech-made rum is not the only alcoholic beverage that is in trouble. Locally-produced spirits that are labelled as Whisky and Brandy are threatened as well and may also be introduced with a new name in the near future.

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