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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.

Overall economic sentiment in the Czech Republic improved in October to its highest level in six months. The composite confidence indicator, as calculated by the Czech Statistics Office, rose to 102.2 in October from 99.4 in September. The statistics office said that economic sentiment in October was driven largely by industry. However, consumer confidence fell, as more consumers predicted a worsening of their own financial and overall economic situation in the next 12 months. I spoke to economic analyst Vladimir Pikora from the Prague branch of

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.

It's half a year before the European Union will take in ten new members, including the Czech Republic. Perhaps the most painful issue both before and after accession is the agricultural policy. EU Commissioner for Agriculture, Rural Development and Fisheries, Franz Fischler, paid a visit to the Czech Republic a few days ago to discuss the issue.

Czech Republic records first trade surplus in 18 months. Government to change VAT rates again. UK's International Power bids for a Czech coal-mining company. Sharp increase in Czech imports of used cars. Aircraft manufacturer Aero Vodochody to lay off 10 percent of staff. Czech Republic sees drop in number of foreign visitors.

Small and medium-size enterprises have often complained about difficulties obtaining credit from banks. This should change with the introduction of a new project called Company Rating, which was launched last Monday.

Parliament approves 2004 state budget in first reading. President signs law increasing excise tax. Government for a cautious euro adoption strategy. Brussels criticises Czech coalmines sell-off plan. Czech retail sales up 5.8 %. Producer prices deflation ends after 18 months. Foreign Ministry to help Czech companies do business in Iraq. Czech farmers want milk prices to rise to EU level. Daikin to build production plant in Pilsen.

Czech unemployment rate reaches 10.1 percent. Czech industrial production shows massive growth. The government to sell two profitable coal companies. Express courier DHL to move information-related operations from Britain and Switzerland to the Czech Republic.

Czech consumer prices dropped sharply beyond market expectation in September. The Czech Statistics Office said prices in September were down 0.5 percent month-on-month, putting the year-on-year rate at 0.0 percent. Analysts had predicted that year-on-year inflation rate would reach +0.3 percent. I spoke to economic analyst Vladimir Pikora of the Prague branch of Volksbank about the main factors behind the latest development: