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The Nečas cabinet suffered its first significant defeat in its consolidation drive on Wednesday. The lower house rejected a crucial part of its austerity package –a controversial bill on tax hikes aimed at bringing the gap in public finances below 3 percent of GDP in 2013. The move has left the prime minister fighting not only for the future of his reform cabinet but primarily his own future as the head of the Civic Democratic Party and the government.

Czech tennis player Tomáš Berdych scored an important win at the US Open when he beat world number one Roger Federer in the tournament’s quarterfinal. Berdych, whose play against the Swiss has been described as overwhelmingly powerful, will next play Andy Murray of the UK for a spot in the US Open final.

A growing conflict within the senior coalition Civic Democrat party is threatening to topple the government of Prime Minister Petr Nečas. Some Civic Democrat MPs have refused to back government legislation raising the VAT rates, a bill the prime minister said was crucial for the future existence of the government. If the bill does get rejected by the lower, Mr Nečas threatened to send the exact same legislation to Parliament again, this time linked to a vote of confidence in his government.

This week will see the official launch of the central satellite navigation centre for the Galileo global navigation system in Prague. Originally eleven countries vied for a chance to host the site, which will oversee the launch of the European answer to America’s GPS.

An elite police unit from Brno has headed to Bosnia and Herzegovina to clear vestiges of the war in Bosnia 17 years ago: unexploded mortar bombs in the winding Sava River. Divers from the elite squad – working in poor visibility, underwater – will understandably have to proceed with extreme caution: an estimated 150 mortar shells litter the river bottom.

Although the most recent figures from the Czech Statistical Office gave a slightly optimistic view of rising wages in the second quarter of this year, a report in the daily Lidové noviny warns that the reality is different. The inflation in the Czech Republic is increasing faster than wages, and given the rising prices of basic goods and threats of further tax increases, the Czech consumer is left less than optimistic about the future.

As students and teachers start the new school year this Monday, parents of Czech elementary school students may have more concerns than in previous years. With the general economic climate worsening, the Education Ministry has had to make some cuts to school budgets, placing a heavier financial burden on the students’ families.

This week a spectacular opening ceremony heralded the beginning of the 2012 Paralympic games in London with the themes of enlightenment and diversity. Czechs are being represented at the games by 52 athletes competing across many traditional events like athletics and swimming, but will also be appearing in paralympics-only sports such as Boccia.

A patient in the Czech Republic has become the first person in the world to survive for nearly six months without a heart. The patient, a 37-year firefighter, had a malignant tumor that allowed immediate transplantation as the only alternative. When a donor was not found in time, his heart was replaced by two mechanical pumps.

Shockwaves have continued to reverberate across the Czech political scene over the unexpected firing of police president Petr Lessy. On Wednesday, the police official was relieved of duty with unusual speed after he was charged with libel and abuse of public office. The opposition slammed the step as an assault on the independence of the police.