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Less than a year after the country's admission to the European Union Czech dairy producers have started feeling the pinch of tough competition on the EU market. Not because of cheaper, heavily subsidized goods from EU member states - as was their main concern - but because Czech milk suppliers have started selling their milk to neighbouring Germany at more advantageous prices.

The centre right Civic Democratic Party will put forward a bill on a referendum on the European Constitution. The proposed bill relates to this particular referendum alone, and stipulates under what conditions it should be held. Posing a simple yes-or-no question, the referendum should be preceded by an in-depth informative campaign and should take place before the end of the year. The leading opposition party of Civic Democrats are opposed to the European Constitution in its present form and have repeatedly warned Czechs that it would restrict the sovereignty of their country.

For the first time in ten years, the Czech Republic has exported more goods than it imported. Figures released by the Czech Statistics Office show that last November the Czech Republic posted a foreign trade surplus of over 5 billion crowns (218 million dollars) while in the same period of the previous year the country had a foreign trade deficit of 8.4 billion crowns.

The Czech state will have to let go of a number of state grants in order to be able to co-finance projects covered by EU funds. By 2007, the Czech Republic will have to release some 47 billion Czech crowns (1.5 billion euros) a year for this purpose, the Finance Ministry said on Thursday.

The former Czech President Vaclav Havel has spoken against a referendum on the European Union Constitution. Speaking in a televised debate on Sunday, Mr Havel said the EU Constitution Treaty was a comprehensive technical text hardly changing the European Union. Mr Havel said once Czech citizens said yes to EU membership, a public vote on the EU Constitution would be superfluous. Czech politicians have not yet decided on the way of ratifying the treaty but it is expected that a referendum will take place. The opposition right-of-centre Civic Democrats as well as President Klaus sharply criticise the EU Constitution.

In his New Year's address to the nation President Vaclav Klaus said that the Czech Republic's accession to the European Union on May 1st, 2004 did not prove to be a watershed in people's lives. The President said that although the ongoing changes have been continuous, people should be aware of them. In his speech President Klaus criticised the fact that despite promises, the reforms of the health care and pension systems have not been launched. Mr Klaus also mentioned the low voter turnout in the European Parliament, Senate and regional elections that took place in the Czech Republic in the past year. The President said that by not turning up people expressed what they thought of those institutions. He concluded his New Year's address by saying that 2005 should not be a nameless year, lacking in substance. He called on the Czech people to follow traditionalist, conservative and un-ideological goals and demand courage, responsibility and modesty from their elected representatives.

This week on Business Report, we take a look back at some of the most important events of the year.

Budejovicky Budvar, the only major brewery still in the hands of the Czech state, has been locked in a lengthy battle with the world's largest brewer — Anheuser-Busch of the U.S. — over the Budweiser name for nearly a hundred years.

EU wants Czechs to give up 'golden shares'; State budget for 2005 signed into law; Eurotel ordered to pay 48m crown fine; Eurotel ordered to pay 48m crown fine; Record-high Czech beer exports in 2004

The Czech Republic's most renowned tractor manufacturer Zetor - which used to have assembly plants in Asia and North America - is currently experiencing a new boom in sales. With the Czech Republic now in the EU, the recently privatised company hopes to regain its status as the region's biggest and most respected tractor producer.