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Overall confidence in the Czech economy decreased again in June, and the composite confidence indicator was 0.8 points lower compared with May. The Czech Statistical Office said Monday that confidence among entrepreneurs had once again only increased in trade, and only slightly; in construction, selected services and in industry it declined. Consumer confidence increased compared with the previous month, but remains lower year-on-year. A survey taken among consumers in June indicates that consumers are less afraid of a drop in the overall economic situation or their own financial standing in the next twelve months, compared to May.

Finance Minister Miroslav Kalousek said today he fears plans for the establishment of a union of banks within the European Union might jeopardise the single financial market in the EU. Some European politicians, including European Commission head Jose Barroso, are calling for the establishment of the bank union in reaction to the current crisis. However, Mr Kalousek says it is not possible to expect that all countries will participate in the bank union and warns that if the union were formed by only some countries, it might be the end of the single financial market in the EU. The plan – which entails greater integration of the banking sector, stronger regulation and changes in insurance policies and bank guarantees - will be discussed by EU governments and heads of states at a summit in Brussels next week.

The Visegrad group states have said the solution to the EUs debt crisis must not undermine growth or hurt the common market. At their session in Prague on Friday the heads of government of the Czech Republic, Slovakia, Poland and Hungary stressed the need for long-term, far-reaching changes which would gradually restore confidence on EU financial markets. Meeting ahead of next week’ s EU summit in Brussels the Visegrad group warned against quick solutions in the form of a hastily conceived fiscal union which EU members would be asked to support without closer inspection.

According to a new survey by the European Commission’s Eurobarometer, only 49 percent of Czechs speak at least one foreign language, a score that puts the country below the EU average of 54 percent. The fresh poll found that the Czech Republic in this regard ranks only 19th among the 27 countries compared in the survey. In addition, the percentage of those Czechs who are able to speak one or more foreign languages has dropped: In 2005, some 51 percent of Czechs said they spoke two languages. The poll also found that Czechs are well aware of the advantages of mastering a foreign language: Ninety-eight percent said that they considered learning them something that would put their children at an advantage.

The European Union has called on the Šumava park management to cease tree logging in certain areas of the national park. The European Commissioner for the Environment, Janez Potočnik, in a letter expressed concern over the fact that the park’s management last year had felled trees in areas where protected species, such as the wood grouse, live and thereby had negatively impacted their natural environment. In the letter, the commissioner asks the park’s management to stop large-scale tree-logging. He adds that he cannot rule out legal proceedings in case of the Šumava national park management’s non-compliance. Last summer, the logging of bark-beetle infested trees in a protected area of the park was met with a massive wave of protests and blockades.

The Czech Republic ranked 18th in the European Union in GDP per capita in 2011, up one place from the previous year, according to figures released by the bloc’s statistical body Eurostat on Wednesday. However, Czech GDP last year only reached 80 percent of the EU average. Luxembourg is the EU member state with the highest GDP per capita while the Czech Republic is the EU’s second richest former communist country after Slovenia.

President Václav Klaus received controversial British MEP Nigel Farage at Prague Castle on Monday. The noted eurosceptic and head of the UK Independence Party was invited to Prague by the conservative association D.O.S.T., which allies itself with President Klaus on many issues. Speaking after their meeting, Mr Farage praised Klaus as the sole European head of state who takes a deeply eurosceptic stance. He said their discussion centred on their concerns that Europe uses every crisis as a pretext to take away another piece of democracy from its members.

The Supreme Audit Office has discovered irregularities in the use of EU funds in Prague that may lead to certain projects going unpaid. According to the office’s report, released Monday, some of the recipients made mistakes in selection procedures while others were found to have violated budgetary discipline. He auditors focused on the “Prague Adaptability” operational programme in which roughly 3.25 billion crowns were earmarked for investment in professional education, social integration and modernising education in 2013. The office has criticised Prague City Hall for both running and auditing the programme. Some of the findings were transferred to the financial authorities, which may impose fines.

The Foreign Ministry has also announced that additional Czech consular offices will be opened on a temporary basis for the summer, namely in Barcelona, Spain, the seaside town Burgas in Bulgaria and in Split and Rijeka in Croatia. The Czech embassies in Spain and Croatia will also have additional staff for the summer. Eight Czech police will be operating in Croatia, which is the most popular summer destination for Czech tourists, in order to help their Croat colleagues deal with cases involving Czech citizens. The ministry noted that Czech citizens may address a diplomatic mission of any other EU country if they are staying in a state where there is no Czech consulate.

The Czech crown firmed upon news of the election victory of pro-EU parties in Greece and all the day’s papers commented on Europe’s palpable sigh of relief. Although not a euro-zone member, the Czech Republic has nevertheless watched the Greek drama unfold with considerable concern.