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After joining the EU, the Czech Republic will abandon its trade policy in favour of a common trade policy directed from Brussels. This will mean a loss of some trade benefits, including the GSP benefits granted by the United States. On the other hand, the move will present new opportunities for Czech firms in other parts of the world.

The Czech Republic is the fastest growing market for call centres in Europe at an annual rate of 20 percent. With advanced telecommunications networks, highly educated labour force, and good geographical location in the heart of Europe, the Czech market seems to have a great potential for the call-centre business.

Just a few days ago, the Czech engineering company Skodaexport signed a contract to modernise the Ennore power station in Chennai, India. In the tender, Skodaexport beat several strong competitors, including the largest local player BHEL. Skodaexport will lead a consortium to renew three of the plant's generating units, which were built in the early 1970s by the Czech company.

Czech business confidence picked up in February after a three-month decline. The Czech foreign trade balance showed its best monthly result since 1995 with a deficit of 0.2 billion crowns. The Czech Republic will ask Brussels fight for a lower VAT for restaurants. The former monopoly Czech fixed-line operator Cesky Telecom has lost tens of thousand of clients in 2003.

30 percent of Czech exporters seen not ready for EU competition. Boeing to leave Aero without compensation. Czech January producer prices jump more than expected. Retail sales in December grow 6.3 percent year-on-year. Industrial output rises by 8.9 percent in December.

The Czech Republic is getting ready for billions of euros from EU structural funds after enlargement on May 1. However, things do not seem so bright due to reportedly insufficient financial control at the regional and municipal level.

Inflation accelerates beyond expectations to its fastest rate in nearly two years. The unemployment rate rises to a record 10.8 percent but many are reluctant to take available jobs. Labour and Social Affairs Minister is planning to tighten the conditions for foreigners who want to obtain a business licence. Czech construction firms are merging so as to have easier access to large contracts financed from European Union funds.

The Czech government has decided to act to save the troubled aircraft maker Aero Vodochody, controlled by American Boeing, restructure the company and find a new strategic partner for it. However, the plan is not without a catch: although the government holds a majority in Aero, Boeign has a managerial control and the government cannot terminate their agreement unilaterally.

The government has agreed on the main aims of the pension system reform, although on a very general level. The new system should be more efficient, equitable and financially sustainable. It should react to the changing needs of the society and individuals, increase savings rate and guarantee future pensioners a sufficient income.

European policy makers told EU accession states not to hurry with entering the exchange rate mechanism, a step required before euro adoption. The government has agreed to reduce the basic Value Added Tax rate from 22 to 19 percent. Central Bank has left interest rates intact for the time being but signalled hikes on the way.