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Cabinet fails to agree on 2005 budget, FinMin seeks advice on trimming public work force, EU okays CSOB's state guarantees but not to GE Capital, and crown nears all-time high against the U.S. dollar.

Central Europe has become an attractive location for multinational companies' back offices, or support centres and the Czech Republic has benefited from outsourcing by investors abroad. This week, the international energy company ExxonMobil opened a global Business Support Centre in Prague, which will employ 300 people, offering IT, accounting and other customer support services for European clients, but could create as many as 1300 jobs within a few years' time.

Budget deficit twice that which analysts had predicted, FinMin revises GDP growth estimate, Ernst & Young notes fall in CEE investment, Czech Railways to auction off property.

European Union finance ministers this week gave the Czech Republic an official "slap on the wrist" for running excessive budget deficits, but have approved the Czech finance ministry's plan to rectify the situation.

For the past decade, unstable governance by de facto minority rule has marked the Czech political landscape. Head research analyst Jan Schiesser of the Atlantik brokerage says a caretaker government may now be the only way to proceed with much-needed — but politically painful — economic reforms.

Taiwanese to build 20bn euro plant in Ostrava, CSA seeks to lure home Americans of Eastern European decent, Polish venture capital group opens Prague office, and the value of Czech striker Baros up five-fold

Risk capital, private equity or venture capital; whatever you choose to call it, investment in high-risk but high-yield start-up companies has been rather sluggish here, according to the Chairman of the Czech Venture Capital Association, Jaroslav Horak. According to a recent survey of the EVCA, the European venture capital association, there is plenty of room for improvement in the Czech legal and tax environment.

Coalition government agrees on target budget deficit for 2005. Zentiva GDR shares five times oversubscribed in London trading. 10 billion Kc gambling industry poorly controlled. CzechInvest names DHL "Investor of the Year"

The results of a newly released survey by Sweden's Intrum Justitia, one of Europe's leading providers of credit management services, indicate that Czech Republic is one of the riskiest places in Europe to do business, in terms of customers defaulting on payments.

Crown drops on fears of political instability. Draft 2005 budget in circulation. Tax breaks for married couples, families with children. Popular Eurobond issue increased by 50 percent. Power utility faces $25m arbitration claim.