Business News | All stories

Central Bank sees higher CPI risks, but not as a problem. SEC launches new system to detect dubious deals. Czech power utility CEZ to bid for Slovak Slovenske Elektrarne. Business confidence cools down in November. Government to issue more state bonds to finance budget deficit. Coal barons charged with misuse of insider information.

Wages in the Czech Republic are the second highest out of ten accession countries slated to join the European Union next year. Considering the virtually non-existent inflation and relatively slow growth in labour productivity, we ask an expert about the sustainability of wage development.

Foreign trade development suggests a recovery. President Klaus has vetoed one of fiscal reform bills. Financial market supervision to be entrusted to one institution instead of the existing four. The Czech Republic fails to make it on Hyundai's shortlist for new car plant. Unipetrol privatisation has been postponed again. Czechs will face a series of price hikes from the New Year - including telephone, gas, and electricity. But before that, they may experience a blackout on the Christmas Eve.

Many Czech companies believe the business environment has been deteriorating. Bad laws, corruption and insufficient law enforcement are cited as the worst problems.

Leaders of the three ruling parties have agreed on pension reform principles based on the Swedish model. Czech retail sales advanced at the fastest annual rate in three and a half years in September. Czech producer prices jumped 0.6 percent month-on-month in October. Most of Central Europe's largest economies not expected to join the euro zone until 2009, a survey showed. Czech Telecom warns of slipping into a loss, redundancies, unless allowed to hike prices. TDC said has pulled out of Ceske Radiokomunikace, stays in Contactel. Half of Czech travel

A sharp conflict is looming between the Czech Republic and the European Commission. The Commission does not like the way the Czech government has been conducting a public tender for the privatisation of the Severoceske doly and Sokolovska uhelna coal mining companies. The Commission sees the tender conditions as seriously discriminatory and says it suspects covert state aid.

Unemployment falls to below 10 percent. Food prices push Czech inflation slightly higher, reversing trend. Industrial production sees increase in September. Seasonally adjusted construction output at constant prices up 0.2% m-o-m. Government offers more money to bail out indebted hospitals. Czech farmers seek exception from EU bone-meal ban. Official: report of Czech illegal workers in U.S. exaggerated. North Moravian municipalities against planned nuclear plant. Czech Railways to lease Prague's main station to Grandi Stazioni of Italy.

Five bidders shortlisted in coalmine privatisation. CEZ excluded from Czech coal mine sale. Central Bank softens minimum reserves requirement for banks. Czech government keeps 2004 economic outlook but cuts budget gap forecast.

While the first stage of the government economic reforms is aimed at reducing the ballooning public finance deficit, state institutions as well as economic analysts agree that the second stage should focus on fighting the so-called shadow, or grey, economy.

Labour Ministry expects real wages to rise 2.5 pct in 2004. IT minister hopes Telecom sale will boost Internet usage. Statistics Office releases revised GDP figures. Czech Republic competes with neighbours for Hyundai/KIA investment. Czech meat production up 8 % in September.