News Czech Republic 09.09.2012 - 13.09.2012

CR: Methanol claims 18th victim

Methanol-laced bootleg liquor claimed its 18th victim in the Czech Republic when an older man died on Wednesday in his apartment in Havířov, in the north east of the country. Another five cases of suspected methanol poisoning have been registered in the country over the last 24 hours, Health Minister Leoš Heger said. One man has been hospitalized in Písek, in southern Bohemia, the first case registered in the region. The authorities continue to collect and test samples of spirits; more than half of 57 spirits samples collected in the Moravian-Silesian regions tested positive for methanol.

Bootleg alcohol warehouse discovered in Zlín

The police in Zlín in eastern Moravia on Thursday discovered a warehouse with suspicious alcohol in bottles without tax stamps along with thousands of counterfeit labels. The proprietor of the warehouse had been arrested earlier. The warehouse was set up in a garage in the part of town where several people bought methanol-contaminated alcohol. The head of local police said however they had no evidence the man was the main distributor of bootleg liquor in the area.

Police arrest two people over bootleg alcohol possession

Police in north Moravia have arrested two men over the possession of bootleg liquor. The men, aged 46 and 47, were detained on Wednesday after inspectors found 400 litres of alcohol in various containers without duty stamps, a police spokeswoman said. The alcohol is now being tested for the presence of methanol. The police have also charged two people from Havířov and Zlín with offences related to the distribution of bootleg liquor.

Doctors revise 150 autopsies to find methanol-related deaths

Doctors in Ostrava have found out that a 73-year-old woman, who died in the north-eastern town of Havířov in May, was killed by methanol. They will now revise the results of 150 autopsies that have been carried out since May to confirm whether any of the deceased also died due to methanol intoxication, the head of the Ostrava hospital’s forensic department said on Thursday. Ten people have died of methanol poisoning in the Moravian-Silesian region.

Press: Czech Republic to lose one billion euros in EU subsidies

The European Commission has refused to pay around one billion euros into four Czech operational programmes over errors in their administration, the news website aktualne.cz reported on Thursday. The subsidies have been cut for the Transport, Environment, Enterprise and Innovation programmes as well as for the Regional Operational Program South-West. The programmes will have to be subsidized from the state budget and the budget of two regional authorities. Government officials have refused to comment on the matter. The website reported that funding might also be cut for other Czech operational programmes.

Rebel Civic Democrat MPs refused VAT hike

Six MPs of the ruling Civic Democrat party, who last week torpedoed the government’s plan to raise the VAT rates, said the rates should be kept on the current level next year. After a meeting with the head of the Civic Democrat deputies’ group, the MPs said the only alternative was to unify the VAT rates into a single rate. Their support will be crucial in a repeat vote on the government’s tax legislation which has been linked to a vote of confidence. Party leaders said they still hoped to find a compromise solution.

Government appoints new head of military intelligence

The Czech government has appointed Milan Kovanda the new head of military intelligence, the news website respect.cz reported on Thursday. His predecessor, Ondřej Páleník, said he had decided to step down after five years in the post. The new director of the service, Milan Kovanda, joined the army in 1992 and has served in Afghanistan and Kosovo. In 2001, Mr Kovanda became the commander of a special forces unit of the Czech army that was involved in direct military combat in Afghanistan.

Market prices of apartments continued to drop in Q2

The market prices of apartments continued to drop in the second quarter of 2012, according to figures by the Czech Statistical Office released on Thursday. The prices of older flats decreased by 5.7 percent while the prices of new apartments in Prague fell by 3.4 percent. Analysts say the continuing decrease in apartment prices is related to the construction of new housing projects.

Hockey: new extraliga season begins

The 20th season of the Czech hockey extraliga begins on Thursday with a match between last year’s runners-up Kometa Brno and newcomers Chomutov. Commentators see no apparent favourites of the season but expect Sparta Prague, Pardubice and Třinec to play for the title. The top hockey division has slightly changed the relegation system for the new season; two best teams from the second top league, instead of one, will this year play two worst extraliga teams for spots in the top division.

Tennis: Štepánek to open against Argentina's Del Potro in Davis Cup

Radek Štepánek will open against Juan Del Potro in the semifinal of the Davis Cup between the Czech Republic and Argetina in Buenos Aires on Friday. In Friday's second singles, Czech number one Tomáš Berdych will play Juan Monaco while on Saturday, the Czech Republic Ivo Minář and Lukáš Rosol will face Carlos Berlocq and Eduardo Schwank.

Weather

The end of the week will be mostly overcast with occasional rain. Daytime highs should range between 16 and 20 degrees Celsius.

 

Emergency task force set up to respond to methyl alcohol poisoning as death toll hits 16

The death toll from methyl alcohol poisoning related to bootleg production has reached sixteen, the Czech news agency and other sources reported. Others remain in hospital in serious condition. Earlier on Wednesday the government set up an emergency task force to respond to the alarming number of cases of methyl alcohol poisoning. The task force, which includes representatives from a number of ministries including health, interior and industry and trade, as well as the police president and customs officials, has already met over the worsening situation, recommending that the sale of spirits be banned at market stalls and food stands.

Government approves ban blocking food stands from selling hard liquor

In related news, the cabinet approved the ban of all sales of hard liquor at food stands on Wednesday afternon. The ban remains in effect pending an official announcement by Health Minister Leoš Heger. Stands will not be allowed to sell beverages stronger than 30 percent alcohol.

Special police team created

Police president Martin Červíček has put together a special police team which will investigate methanol poisoning cases which rose dramatically in the Czech Republic over the past days. The wave of methyl alcohol poisoning has already claimed 16 lives and more at least 14 others remain in serious condition. Most of the fatalities have occurred in Silesia and Moravia. The spokeswoman for the police presidium Štěpánka Zatloukalová said the aim was to better coordinate police efforts and results of expert findings, as well as the investigation to find who was responsible for the production and distribution of the bootleg alcohol.

Emergency inspection uncovers numerous flaws at drinking establishments

In related news, emergency inspections of 410 restaurants and drinking establishments in nine of the country’s 14 regions throughout Monday and Tuesday, uncovered flaws in 75 cases – the majority related to missing acquisition records. Establishments will have to provide the missing documentation within three days, Health Minister Leoš Heger said on Wednesday. Two cases are being investigated by the police, six cases are being handled by customs officials. In several cases, establishment owners were ordered, in the presence of a hygiene officer, to destroy liquor on site.

President signs amendment slowing old age pension growth

Czech President Václav Klaus has signed into law legislation slowing the growth of old age pensions over the next three years, the president’s spokesman Radim Ochvat revealed. By doing so, the president declined calls by the opposition Social Democrats and the country’s Senior Citizens Council to reject the bill. Last week, the Chamber of Deputies passed the bill again, overriding a veto by the Left wing-dominated Senate. Under the amendment, pensions will be indexed over a period of three years starting in 2013 with one third of the growth in prices and one third of the rise in real wages. The amendment is part of the government’s austerity measures aimed at decreasing the deficit.

Public Affairs slams budget proposal

The opposition party Public Affairs has charged that the government’s budget proposal for 2013 overestimates expected revenues while doing little to support entrepreneurship and lowering spending. The party was a former coalition member before it splintered into Public Affairs and LIDEM. According to party leader Radek John, the proposed budget will hurt growth and drive the country deeper into recession.

Kott to remain in custody

A Prague district court has ruled that Petr Kott, a former MP facing corruption charges along with companion Kateřina Pancová and former Social Democrat governor David Rath, will remain in custody, for fear he could try and influence witnesses, flee from justice or continue in criminal activity.

Czech nationals arrested in Greece await decision by state prosecutor

Two Czech nationals arrested on spying charges on the island of Limnos in Greece could potentially face up to 20 years in prison – if their case were to go to trial and the two were found guilty. The head of the Czech consulate in Athens Blanka Kovacsová outlined the situation on Wednesday in an interview for the Czech news agency. The state prosecutor overseeing the case has not yet decided whether the two men, aged 28 and 33, will be remanded in custody or be allowed to post bail. The duo’s public defender has requested an expanded investigation that would see witnesses be called to give depositions. The two Czechs have said in their defence that they were only researching material for a computer game; they were caught recording footage of a Greek military base as well as a local airport.

Film and TV legend Radoslav Brzobohatý dies aged 79

Legendary Czech actor Radoslav Brzobohatý has died at the age of 79. The actor, who starred in Czech New Wave films like Všichni Dobří rodáci (All My Compatriots) by Vojtěch Jasný and Ucho (The Ear) by Karel Kachyna, passed away just one day before he would have turned 80, his wife Hana Gregorová said. Earlier this year, Radoslav Brzobohatý was inducted into the Hall of Fame at the TýTý awards.

Football: Czech squad loses to Finland in friendly

The Czech national football team received poor marks from viewers and sportswriters for a lacklustre performance against Finland, a friendly the squad lost 1:0. After a dismal first half, in which the Czech squad conceded the game’s lone goal, players raised their level of play, creating several opportunities but were unable to equalise.

 

Death toll from methanol poisoning reaches eight

Eight people have died of methanol poisoning from bootleg alcohol and two dozen are fighting for their lives in Czech hospitals. There is now growing concern for public safety as new cases are registered daily in different locations. Although two cases of methanol poisoning have appeared in central Bohemia the vast majority of cases are reported in Moravia. The health ministry has ordered inspections in cafeterias and restaurants around the country and the public has been warned not to consume unlabeled alcohol or spirits on tap. Police are still trying to trace the source of the contaminated liquor and it is not clear how much of it may be on the market or where it may surface. A number of suspect bottles confiscated by the police on Monday carried a Drak spirits producer label, but the company says the labels were fake. Three cases of methanol poisoning have been reported across the border in neighbouring Poland. Two people are reported to have died and a third has gone blind.

PM wants concerted action in methanol poisoning scare

Prime Minister Petr Nečas has expressed grave concern regarding the latest developments and wants a central crisis committee established in Prague to try and prevent further loss of life and damage to health. He has urged closer cooperation with the media and local crisis committees in spreading the message and taking effective preventive measures. Meanwhile the opposition Social Democrats have called for the dismissal of several ministers, saying the Nečas administration had miserably neglected its duty to protect public health.

PM under fire over foreign policy statement

The prime minister has come under fire for saying that support for Pussy Riot and the Dalai Lama are harming the country’s interests and export potential. The coalition party TOP 09 said on Tuesday that the views expressed by the prime minister at the International Engineering Fair in Brno were regrettable and could discredit the country.

Speaking to an audience of business leaders at the fair on Monday the Czech prime ministry said that while support for human rights must remain a top priority in Czech foreign policy, the false adoration of and support for the group Pussy Riot or the Dalai Lama were simply a fashionable trend that had nothing to do with supporting democracy and merely harmed the country’s exports.

Schwarzenberg horrified by PM’s statement

TOP 09 leader and Czech Foreign Minister Karel Schwarzenberg has clearly distanced himself from the prime minister’s statement. In an interview for Tuesday’s Lidové Noviny, Mr. Schwarzenberg said he was horrified by the prime minister’s words and expressed concern about the fate of a government that placed economic interests above human rights. Mr. Schwarzenberg said he hoped no Czech foreign minister would ever pander to the superpowers in order to serve the country’s economic interests. Dictators must be treated the same regardless of their size, Mr. Schwarzenberg noted.

Jan Švejnar not to run for office

Economist Jan Švejnar, who was considered one of the hot candidates in the upcoming presidential elections, has announced he will not be running for office. Mr. Švejnar said in a press release on Tuesday that he wanted to pursue his academic and consultancy activities. The Czech-born US based economist ran for office in 2008 when he was beaten in a tight race by President Vaclav Klaus.

Culture ministry says Černý sacked over poor financial management

The head of the National Theatre Ondřej Černý was allegedly dismissed for poor financial management. At a press conference in Prague on Tuesday Deputy Culture Minister Martin Sankot said Mr. Černý had failed to draft a satisfactory 2013 budget on the funds earmarked for the theatre. Earlier Minister Alena Hanáková said the theatre head was being dismissed because she was not happy with the pace of the ongoing merger of the National Theatre and the Prague State Opera. Petitions are being signed in support of the director and the theatre’s management has called for the culture minister’s dismissal.

Government to debate 2013 budget

The government will meet to debate the 2013 budget on Wednesday. The budget is tailored to a 100 billion crown deficit which should bring the gap in public finances to under 3 percent of the GDP. Expenditures are projected at 1,185 billion crowns, revenues at 1,085. The proposed budget hangs on the approval of government proposed tax-hikes which parliament recently rejected and which the government sent back unrevised linked to a vote of confidence in the Nečas administration. The government is also expected to discuss measures taken in connection with the methanol poisoning scare.

Bail revoked for David Rath

A Prague court has revoked the 14 million crown bail for MP David Rath set by a lower instance court. The court ruled on the basis of an appeal by the state attorney on the case who argued that there were legal reasons to keep Rath in custody, among others the possibility that he might try to influence witnesses or flee from justice. The former central Bohemian governor is facing trial on corruption charges after being caught with an alleged 7 million crown bribe on his person.

Jiří Dienstbier gives up his seat on Prague city council

Senator Jiří Dienstbier has given up his seat on the Prague city council. Mr. Dienstbier told journalists he wanted to concentrate fully on his presidential campaign. His seat will be filled by colleague Social Democrat Lucie Válová.

Two Czechs arrested on spying charges in Greece

Two Czechs have been arrested on spying charges in Greece. The men –aged 28 and 33 - were detained for taking photos and recording video footage of a Greek military base and an airport on Lemnos Island. The men said in their defense they had made the documentation for a computer game they were working on. They are to be transported to Lesbos Island where they will be questioned by a state prosecutor.

 

Health ministry to carry out alcohol inspections

 

The Health Ministry has ordered emergency inspections of alcoholic beverages in cafeterias and restaurants on Monday in the whole of the Czech Republic, following a string of cases of Methane Alcohol poisoning in different cities since last week. So far, three people have died as a result of poisoning, and a number of others were hospitalized in grave condition. The most recent case was in the central Bohemian city of Příbram, where a man was admitted on Sunday night after losing his sight. If the inspectors find any hard alcohol of questionable origin, the information will be immediately handed over to the police.

Defense ministry corruption trial has started

The trial of 52 defendants accused of manipulating state tenders at the Defense Ministry began Monday morning at the Regional Court in České Budejovice, South Bohemia. Eleven former employees of the Defense Ministry, 38 representatives of private businesses, two notaries and a lawyer are being accused of influencing reconstruction tenders worth 300 million crowns in five different cities. Ninety minutes after the beginning of trial, almost all of the defense lawyers left the court room in protest, claiming that the conditions were not appropriate for trying the case. The largest court room in the regional court could barely fit all of the persons involved in the trial, and defense lawyers complained of having little room at their desk. The trial may last for as long as a year, a member of the judging panel has said.

Midwife’s appeal rejected by Supreme Court

The Supreme Court of the Czech Republic has rejected an appeal from the head of the Midwives Union, Ivana Königsmarková, on Monday. Last year, Ms Königsmarková received a two-year suspended sentence for negligence resulting in grievous bodily harm during a home birth, and was banned from carrying out home births for five years. She was accused of not carrying out proper CPR procedures on a newborn after complications at birth. The defendant has maintained her innocence throughout the trial. Ms Königsmarková said she will take her appeal to the Constitutional Court. Home births are highly frowned upon by the Czech medical establishment, and birth assistants are usually unable to get proper license to carry out births in the home.

Regional council criticized for incorrect selection of EU-funded projects

The Czech Supreme Audit Office (NKÚ) has concluded that more than 27 million crowns were incorrectly disbursed as part of the Czech Northeastern regional operational programme in 2007-2011. NKÚ controlled 13 projects that were funded with 373 million crowns from EU subsidies. The regional council, which is the body in charge of selecting projects for funding and distributing funds, has allegedly broken a number of regulations concerning the assessment of submitted project proposals. The NKÚ says the council’s decision process was subjective and lacked transparency. These irregularities are grounds for a request to return the funds.

Job market outlook negative until the new year

The level of unemployment has not changed in August from July’s 8.3 percent in the whole of the Czech Republic, although there are approximately 1,000 more people looking for work. The number of new positions increased by 3.6 percent. In Prague, the level of unemployment went up in August by a tenth of a percentage point to 4.4 percent. In some regions, unemployment is above 10 percent. Analysts expect the situation on the job market to get worse starting in September, in part due to the large number of fresh college graduates that will enter the market. Given the current economic recession in the Czech Republic, employers are cautious about hiring a lot of new workers. A Pricewaterhouse Coopers analyst has said that unemployment figures may improve in the new year.

National theatre management calls for culture minister’s dismissal

The management of Prague’s National Theatre has called for the dismissal of Culture Minister Alena Hanáková, over Friday’s unexpected sacking of the theatre’s director Ondřej Černý. The management questioned the move in an open letter to the prime minister and criticized the culture minister’s decision to appoint her deputy Martin Sankot as a temporary replacement. The culture minister has agreed to meet with theatre representatives on Tuesday but made it clear that her decisions regarding the theatre were irrevocable.

Minister Hanáková on Friday sacked the theatre’s director without forewarning, later saying that she was not happy with the pace of the ongoing merger of the National Theatre and the Prague State Opera. The theatre head has rejected the stated reason for his dismissal saying his sacking and the manner in which it was undertaken reflected “arrogance of power”. Černý’s mandate was to have expired in March of 2013. A number of Czech actors, playwrights and theatre directors have sighed a petition against his dismissal.

Czech exports to Russia to break records high

The amount of Czech exports to Russia should break the record of approximately 115 billion crowns, or six billion American dollars, this year. Last year, Czech companies exported around 94 billion crowns worth of goods to Russian. According to the Industry and Trade Ministr Martin Kuba, Russia is among the top priorities for Czech international trade. The Czech Republic, on the other hand, imports a large amount of its gas and petrol from Russia. A number of Czech firms have won large tenders in Russian in the past few months. Among them are a Brno company Unis, which will renovate an oil refinery in Krasnoyarsk, while Czech companies under the leadership of OHL ŽS will begin the construction of a railroad in the Urals this year, with a total budet of 58 billion crowns.

Fire consumes a part of a Vietnamese market in Brno

A large first broke out at an Asian market in the Černovice district of the Moravian capital Brno. The fire started just after midnight on Monday and was eventually given the highest level of fire alert, by the Brno fire brigade. No one was hurt, but the damages are estimated to be as much as five million crowns. It took 80 fire fighters from 15 fire brigades to get the blaze under control by nine o’clock in the morning. The burned down building was right next to another in the market that had been victim to a massive fire last year. So far it remains unknown how the fire had started.

International Roma sculptors to make sculpture for Brno street

The third annual symposium for Roma sculptors has started on Monday at the Museum of Roma Culture in Brno. Five artists from the Czech Republic, Slovakia, Albania, Hungary and Poland will create sculptures inspired by the Cejl street in Brno, which is home to many of the city’s Romani residents. The sculptures created at the week-long festival will be part of a travelling exhibit that will go to Slovakia, Hungary and Poland and will later return to the Czech Republic.

TOP 09 candidate in Silesia joins mythical figures in a campaign ad

Pavol Lukša, a candidate for the TOP 09 party for the governor of Moravian-Silesian region, came out with an unusual clip for his campaign. The video presents mythological and fairytale characters that are connected to the region. They are shown coming together with the candid to help and defend people in hard times. Lukša, who is going to challenge the current governor Jaroslav Palas in the October elections, said the video was done more as a joke but was also meant to underscore some of his own values such as honesty and pride in ones homeland.

 

Man charged over illegal brandy deaths

A thirty-six-year old man has been charged in connection with the sale of illegally-produced brandy that killed three people this week. Six others are in critical condition in hospital, most of them likely to lose their eyesight. It is not clear if the man in question produced the alcohol or sold it. The victims all bought the brandy from a street stall in the Moravian town of Havirov, where it was sold on tap. However two more cases of alcohol poisoning have since appeared in the towns of Znojmo and Kyov. Warnings have been issued to the public not to buy cheap liquor in the street until the incident has been investigated.

Injured soldier transported home

A Czech soldier who was seriously injured in Friday’s missile attack against the Shank operating base in Afghanistan has been transported home. The soldier, who served on the provincial reconstruction team in Logar province, was injured by flying shrapnel and was airlifted to a military hospital in Kabul where he was operated on by Czech physicians. On Saturday night he was flown home in an army special and is now receiving care at Prague’s military hospital in Střešovice. There are currently some 300 Czech soldiers and civilian experts working at the Shank base in Logar.

National theatre management requests meeting with culture minister

The management of Prague’s National Theatre has requested a meeting with the culture minister, Alena Hanáková, over Friday’s unexpected dismissal of the theatre’s director Ondřej Černý. The management has questioned the move in an open letter to the minister and criticized her decision to appoint her deputy Martin Sankot as a temporary replacement. The management says the task should be given to someone from their own ranks in view of the complexities involved in managing such an institution.

Minister Hanáková on Friday sacked the theatre’s director without forewarning, later saying that she was not happy with the pace of the ongoing merger of the National Theatre and the Prague State Opera. The theatre head has rejected the stated reason for his dismissal saying his sacking and the manner in which it was undertaken reflected “arrogance of power”. Černý’s mandate was to have expired in March of 2013.

PM warns against provisional budget next year

Prime Minister Petr Nečas has warned against a drawn-out debate on the government proposed tax hikes saying the country could find itself operating on a provisional budget next year. The prime minister defended the government proposed tax hikes, which the lower house rejected thanks to six rebels from his own party, saying that a final rejection of the bill would mean the introduction of a single 17.5 percent VAT which would increase the state deficit by 24 billion crowns. The prime minister ,who has sent the law back to the lower house linked to a vote of confidence in his administration, said in a televised debate on Sunday that should his government fall he would prefer to see early elections to a caretaker cabinet.

Regional leaders demand end to rebellion

Ten regional Civic Democratic Party leaders have called on the six rebel MPs from the party to “end their rebellion” and vote in favour of the government proposed tax hikes. In an open letter to the deputies the regional leaders say that their behaviour is damaging the Civic Democratic Party ahead of the autumn elections and claim that the real reason behind the rebellion is an attempt to oust Petr Nečas from his post as party leader and prime minister. Three regional leaders have not supported the appeal.

Jiří Bělohlávek takes his leave of BBC Symphony Orchestra

Czech conductor Jiří Bělohlávek took his leave of the BBC Symphony Orchestra in grand style on Saturday night conducting the closing night of the BBC Proms. Bělohlávek who has been chief conductor of the BBC Symphony Orchestra for the last six years got a standing ovation from the crowd and a heartfelt rendition of Auld Lang Syne. The conductor received a big cheer when he pulled out the CBE honour given him by Queen Elizabeth and put it round his neck. Mr. Bělohlávek will now be moving back to Prague where he is serve as chief conductor of the Czech Philharmonic Orchestra.

Drunk pilot crashes hang glider

A powered hang glider crashed near Mostkovice in the Prostějov region on Sunday after attempting to land in a field. The sixty-eight-year old pilot was taken to hospital with an open fracture of the forearm. Police investigating the accident took a breathalyzer which showed that the man was heavily intoxicated.

 

Czech GDP falls for the third quarter in a row

Photo: European CommissionThe Czech Gross Domestic Product fell by 0.2 percent from the first to the second quarter of this year, and is 1 percent less than it was a year ago. The GDP has been decreasing for the third quarter in a row, confirming an economic recession in the Czech Republic. The Czech economy has been shrinking due in large part to decreasing household consumption. Although Czech foreign trade remains in surplus, exports to EU countries suffered as a result of the EU’s debt crisis.

Nominal salaries not growing as fast as consumer prices

The average gross monthly salary in the Czech Republic grew by 2.3% in the second quarter, according to figures released by the Czech Statistical Office on Monday. The average nominal wage was just over 24 and a half thousand crowns, almost 600 crowns more than in the same period last year. Yet, consumer prices grew by 3.4 percent during the past year as well, which actually means that real salaries decreased by 1.1 percent in the second quarter of this year. The increase in the price of living is partially due to the rising global prices of fuel and increase in prices of basic food items. The insufficient growth in salaries may also be due to increasingly slowing production of Czech companies.

Number of top earning Czech companies grows

According to an annual ranking of top-earning companies in Central Europe compiled by Deloitte Czech Republic, the number of Czech companies in the top 500 has gone up from 80 last year to 84. Škoda Auto took third place in the CE TOP 500 list of companies from 18 Central and South Central European countries with the greatest overall yearly revenue. A total of six Czech companies made it into the top 30 slots on the list. The biggest firms in the region saw a 9.8 percent rise in profits year-on-year. The total profits of the Czech companies on the list rose by 18 percent to 120.3 billion euros, which makes up 17 percent of total business revenue in the region.

Difficulties with foreign employment irks investors

Photo: Stock.XCHNGHalf a year after the Czech Labour and Social Affairs Ministry began introducing much stricter policies affecting hiring of non-EU nationals, investors and international companies are becoming wary of entering or expanding on the Czech market. Claiming that Czech workers need to be better protected on the local job market, the ministry introduced more complex and costly procedures for validating vocational qualification for foreign workers, and making it practically impossible for low-qualified workers from outside the EU to enter the job market at all. This is raising concerns from international companies like IBM or PricewaterhouseCoopers who claim they will reconsider starting new projects in the country. Providing necessary verifications of future employees’ professional qualifications from abroad may cost a company anywhere between 10 and 100 thousand crowns. It has become more difficult to hire new qualified workers from abroad, but also to fill those positions with Czechs who would be equally qualified. Czech and foreign-owned factories are also suffering because of insufficient local workforce to fill low-qualified positions.

Number of personal bankruptcies in 2012 at historic high

Photo: Stock.XCHNGThe number of declared personal bankruptcies in the Czech Republic grew by 30% in August from the previous month. The August figure was 1628 people, which is 53% more than the number of personal bankruptcies a year ago. According to analysis results released by the Czech Credit Bureau on Thursday, this is the highest number of bankruptcies since a new law was introduced in 2008. The number of bankruptcies filed in the eight months of this year make up a third of all bankruptcies since 2008.