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In this weeks Economics Report we take a look at one of the most important government agencies which has been working to restructure the Czech economy for more then a decade. The Czech Consolidation Agency, or CKA, has a mission to reduce the volume of loss making and other assets of the companies it takes on for restructuring and to carry this out in the shortest possible time and at the lowest possible cost. The agency has been vital in ensuring the privatisation of a number of formally state owned companies.

The Czech government has delayed the planned sale of national power producer CEZ until after it has drafted a new national energy policy. The Czech Senate has approved a new law aimed at curbing tobacco promotion. The European Central Bank has urged EU membership applicants to get their economies in shape before joining eurozone. The Czech cabinet has scrapped a contract awarded to a private company to build and operate a highway in North Moravia.

Does a country need to advertise itself to attract tourists or is it a task for private tourist industry to attract visitors? Who are Prague's main competitors? And what is the Czech Republic doing to promote itself in a situation when revenues from tourism plunged so deep in 2002 as to cut one percent off GDP growth? In this week's edition, we talk to a representative of the Czech Tourist Authority in London about how the Czech Republic tries to present itself to tourists abroad and what kind of visitors it would like to attract.

Ten years ago, in 1993, the Czech Republic's economic transition entered another important stage - the second round of the voucher privatization scheme, in which all citizens over 18 were able to obtain shares in state-owned companies for a symbolic fee.

Czech GDP growth slowed down in 2002 to 2 %. Rebellious Industry and Trade Minister Jiri Rusnok has been replaced. Czech central banker says there is no need for another interest rate cut. Czech public debt keeps growing. The Czech Constitutional has granted small investors equal rights with the state as a shareholder. Czech retail sales grew 4.4 percent year-on-year in January, outstripping analysts' forecasts. The Czech Republic must pay Bermuda-based TV company CME more than 350 million US dollars in damages for failing to protect its investment.

In the mid-1990's a new player entered the Czech retail sector - hypermarkets. Hypermarkets, or warehouse stores as they are referred to in North America, are massive retail spaces where shoppers can purchase anything from food, clothes, CD's, sporting equipment, electronics, and even insurance policies in some cases. Hypermarkets have been springing up like mushrooms in the Czech Republic as they have become extremely popular with consumers. During the communist era Czechs were limited to small state owned stores where the selection was poor and

Czech consumer prices showed an annual decline for the second month running and there has been speculation that the Czech National Bank may further cut the interest rates. The Czech Republic's unemployment rate stagnates at a record high level of 10.2 percent. The Czech antimonopoly authority has fined the dominant telecommunications operator Czech Telecom for abusing its market position. Dominant Czech power producer CEZ is faring well at the German power exchange. After years of decline, Czech housing construction revived in 2002. Overall construction

The Czech Republic has attracted record volumes of foreign direct investment over the past few years. One of the reasons why the Czech Republic has been so successful in attracting foreign investors is the generous investment incentives and an all-inclusive assistance the Czech government provides to investors through its agency CzechInvest whose nine offices are scattered around the world. Ian Willoughby recently spoke to CzechInvest's director of operations in the UK and Ireland, Rene Samek, at his office on London's busy Harley St. Mr Samek

In this weeks economic report we talk to the new director of the Czech Republic's dominant rail operator and largest employer, Ceske Drahy. And as usual we will recap some of the stories making economic headlines in the Czech Republic including: Struggling Union Banka closes its doors. The introduction of civil service law to be postponed one year. Skoda Auto agrees to a wage increase for employees. Employees at truck producer Tatra stage protest strike. Czech National Bank leaves interest rates unchanged and warns that inflation may increase in

The sale of the national telecommunications operator Czech Telecom has been postponed until 2005. Dispute over power sector consolidation continues. The cabinet has approved a package of measures to improve the business environment in the Czech Republic and support entrepreneurship but not without controversy. Czech steel production has grown in 2002 over a limit acceptable for the EU. Czech industrial output grew by a stronger-than-expected 6.6 percent in December. Czech retail sales rose by 4 percent year-on-year in December. The Czech government