Czech News Daily

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

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

Most domestic economists and businessmen regard the outcome of the Chamber of Deputies elections as positive. They think that the future government should adopt deeper economic reforms, above all of the pension system, health care and public finances. What is decisive for the economic performance at present is reforms and stabilisation of the public budgets.  Source:  LN 17

The loss of Tatra Koprivnice increased by approximately CZK 140 mln to CZK 712.3 mln in 2009. The lorry maker saw its sales decrease by a half to approximately CZK 3 bln year-on-year due to the crisis. Almost 1,400 employees had to leave the company in 2009. The company employed 2,280 people as of the beginning of 2010. The staff cuts affected above all production workers.  Source:  HN 21

The media company Central European Media Enterprises (CME), the owner of Nova TV, has gained full control of Pro TV, Media Pro and MediaVision, companies that it had partially owned before. CME has gained the remaining stakes from its head, Adrian Sarbu. Mr Sarbu will receive a financial compensation worth USD 6.2 mln for the remaining 5 % in Media Pro. Mr Sarbu’s stake in CME currently amounts to 6.8 % of the voting rights, or 3.92 mln shares.  Source:  HN 21

The Defence Ministry has prepared an ambitious project called 21st Century Soldier, which is supposed to provide state-of-the-art arms and equipment to smaller groups of soldiers to make the army units more operational and independent. This rearmament includes a tender for new assault rifles, which has been won by Ceska zbrojovka Uhersky Brod. The contract worth CZK 2 bln has already been signed by Defence Minister Martin Bartak.  Source:  LN 9

The Finance Ministry has launched another step aimed at restricting the thriving tax frauds connected with fuel trade. Using so-called securing orders, the tax administration started to block accounts of some fuel traders until they ensure payment of the tax. The measure is supposed to prevent suspicious companies from evading their tax obligations and leading multi-million sums to accounts abroad. The financial offices and customs administration now update data in the list of several hundreds of suspicious fuel traders daily.  Source:  HN 20

Minority shareholders in the ArcelorMittal Ostrava steelworks are offered CZK 4,000 per share by the majority owner in the squeeze-out proceedings. The sum has been proposed by the parent ArcelorMittal Holdings AG, the owner of a 96.4-percent stake in the Ostrava based company. However, small shareholders disagree with the proposal and threaten with a lawsuit, demanding at least CZK 7,000 per share. The current price of the company’s share in the RM System exchange is just below CZK 4,000.  Source:  HN 17

37.3 % people fear bankruptcy of the public finances, according to a Median poll for the Lidove noviny daily. On the contrary, more than 45 % of respondents think that nothing like that may happen. The poll among 438 respondents aged 15 to 79 was carried out in the first half of May 2010. The Czech Republic is among the countries with greater fears in the European comparison. The most popular cuts, right after savings on public commissions, include reduction of the number of public servants and of their salaries.  Source:  LN 1