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In one of the recent editions of the Economics Report, we spoke about consumer protection here in the Czech Republic, its history and some of the main issues. However, consumer protection does not have only legal and economic dimensions: increasingly, it is becoming intertwined with environmental concerns. In the same way as sustainable development became an imperative for the globalising world, environmentalists and consumer protectionists are now talking about the need for "sustainable consumption".

The Czech government plans to top up direct subsidies its farmers will get from the European Union. Year-on-year CPI grows for first time this year. Czech industrial output slowed beyond analysts' expectations in May to its weakest pace in nine months. Unemployment increases to 9.5 percent. GDP calculation methodology is to be revised. Government approves new bookkeeping regulations. Telecoms company Ceske Radiokomunikace will sell its 40-percent stake in phone operator Contactel for a symbolic one crown.

Czech government faces another arbitration. New calls for privatisation of remaining state assets. Parliament passes law to speed up energy market liberalisation. Pilsner Urquell brewery found guilty of compeititon-blocking practices. Government would like mobile operators to pay for UMTS licences as soon as possible. Central Bank intercepts an increasing number of forged euros. Consumer confidence has been on the rise. Czech foreign debt decreases.

Czech government approves the framework of its fiscal reform package. Central bank cuts key two-week repo rate to an all-time low of 2.25 percent. The Czech trade deficit for May narrowed well beyond expectations to its lowest level since January. Czech farmers will receive compensations for damage caused by sweeping floods last summer. Government is considering further privatisation of lucrative companies, including famous Budvar brewery. Telecommunications giant Czech Telecom hopes to reduce operating cost after taking over mobile operator

Consumer protection is a relatively new phenomenon in the Czech Republic. Under the former Communist regime, the state kept an eye on business practices, norms and standards, and consumers had no choice but to accept what was on offer. Nothing like non-governmental consumer protection organisations or lobby groups existed. After 1989, when free market principles were implemented, the situation changed dramatically in the sense that state supervision diminished. However, it took several years before consumers started to organise themselves to defend

The Czech Republic's EU entry, as approved by the Czechs in referendum last weekend, will bring about changes in many respects. One of them is the opening of markets, implying free movement of goods, capital and labour. The possibility to work abroad was even one of the main points in the government's promotion campaign before the referendum. Some of the current EU countries are going to limit the inflow of workers from the new member states for a transitional period of two to seven years. The Czech Republic is still hoping to reverse their decision

Government has approved main goals of fiscal reform. A higher than expected retail sales growth in April confirmed a strong domestic demand. Czech industrial producer prices were down 0.8 percent in May. Germany's RWE Gas has acquired remaining 3 percent in Transgas. LNM Holdings has cancelled a plan to buy out minority shareholders at Czech steel maker Nova Hut. Skoda Auto saw revived sales in May and views the rest of the year with mild optimism.

The focus of today's edition of Economics Report is the Czech referendum on European Union accession. On Friday afternoon Czechs will begin going to the polls to decide that fundamental question 'to join, or not to join'. The Czechs' answer, either way, will have a profound effect on the future of the country for generations to come. So far, all indications are that Czechs - like their neighbours in Poland and Slovakia - will vote to join the EU. A Stem survey released this week has predicted that around 78 - 80 percent of those who come to the

Capital market stays calm ahead of Czech EU referendum. GDP grows faster than expected. Czech consumer prices remained unchanged in May. Jobless rate continues to fall. The Czech Republic is to increase its dependence on coal and nuclear power. Dominant fixed-line operator acquires mobile leader. Cesky Telecom plans to expand abroad.

Act now or die, that is the imperative of today for small and medium-size enterprises as the time for preparation for the vast, highly competitive, borderless EU market is running out. A recent survey in ten Central and East European candidate countries showed that although companies are widely optimistic about their future on the single market, the state of their overall preparedness suggests that the level of optimism may be unsubstantiated.