Czech News Daily

The Interior Ministry has proposed a bill tightening the conditions for business activities of foreigners in the Czech Republic to the cabinet. For example a condition required for the issuing of an entrepreneur visa would be a controlling interview in Czech with consular officers or at least two years of stay in the Czech Republic. The change is supposed to come into force as of December 2010. Its objective is to eliminate the cases when foreigners, who were issued a residence permit in order to run business activity, did not carry out such activity factually.  Source LN 5

The proposal of a pension reform that is being finished by an expert commission led by Vladimir Bezdek is much more radical than expected. According to the proposals, the Czechs might pay less money from their salaries for pension insurance in the future, but at the cost of a step increase in the prices of food, medications and other goods. Instead of today’s 28 %, people would contribute only 23 % of their salary, saving additional 3 % to their individual pension account, either obligatorily, or voluntarily. According to the proposal, the changes are supposed to begin in 2015 at the latest.  Source HN 1

The CSSD, the party that won the elections with the margin of less than 2 %, has a chance to gain at least some important post. The representatives of the ODS, the TOP 09 and the VV, who negotiate about their mutual coalition, have admitted that they might leave the position of the chairman of the Chamber of Deputies to the CSSD. They would thus follow an earlier custom, according to which the Chamber of Deputies is presided by the opposition, which controls the government. CSSD deputy chairman Bohuslav Sobotka might become the chairman of the Chamber.  Source:  Mfd 1

The state budget had a deficit of CZK 95.4 bln as of the end of May 2010; it represents the worst figure in the whole existence of the Czech Republic. The deficit increased by another CZK 17 bln in May 2010 alone. The state budget for the whole year 2010 was approved with a deficit of CZK 162.9 bln. The 2009 budget had a record all-year deficit of CZK 192.4 bln, even though the deficit amounted only to CZK 71.4 bln in May 2009. Finance Minister Eduard Janota said earlier that he planned further austerity measures still in 2010. The aim is to keep the planned public finance deficit on the level of 5.3 % of the gross domestic product.  Source:  Právo 15

The new coalition government formed by the ODS (Civic Democrats), the TOP 09 (Tradition, Responsibility, Prosperity) and the VV (Public Affairs) may significantly affect the country’s economy. If it is formed by the mentioned parties, the coalition will have an advantage. Whatever it approves it will push through without problems with its 118 deputies; moreover, it will easily overrule any prospective veto. The new government must decide about the finishing of the construction of the Temelin nuclear plant.  Source:  Právo 14

The KSCM (Communists) have gained 26 seats in the elections, the same number as in 2006. However, if the ODS, the TOP 09 and the VV reach an agreement on the formation of a government, the Communists will lose a significant part of their influence. The three parties concur that they will not support the Communist aspirations to posts in the leadership of the Chamber of Deputies. KSCM chairman Vojtech Filip has been deputy chairman of the lower chamber of Parliament since 2002.  Source: LN 2

Customers, especially those of the regional gas suppliers RWE and E.ON, will pay more for gas supplies as of the second half of 2010. Prazska plynarenska will retain the prices of gas supplies at the current level. E.ON will increase its prices by 6 % on average. RWE, which supplies gas into the rest of the country, except for Prague, will increase its natural gas prices by 4.9 % on average.  Source:  LN 14

University students might receive a monthly contribution for studies plus loans of up to CZK 54,000 yearly. The contributions would be provided to all students and the government is supposed to lose no money, as the contribution would be covered from tax discounts for dependant children that are available for parents now.  The age limit, over which students cease to have advantages, would be increased as well.  Source:  Mfd 5

The ODS lost 800,000 voters and the CSSD 500,000 voters in comparison with the previous Chamber of Deputies elections. This means a slump by CZK 80 mln and CZK 50 mln in the state subsidies for received votes alone. Moreover, the campaign expenses of both parties exceed the sum they will receive from the government.  Source:  LN 6

Bohuslav Sobotka, the acting head of the CSSD, will be entrusted with negotiation about the new government, and if he does not succeed then ODS leader Petr Necas will get a chance to become the new prime minister.  President Klaus has already suggested that he would give the first chance to the winner of the elections. Mr Klaus strictly abided by this unwritten rule after the previous elections.  Source:  Mfd 2