PHARMACIES - Most of the country's pharmacies were closed Jan. 30 as part of a strike against a Health Ministry order forcing drug sellers to lower margins on many drugs. Organizations representing pharmacists have argued that the measure could harm small pharmacies. Health Minister David Rath said the senior opposition Civic Democrats were behind the protests.

TAX - The government has reached a compromise with the European Union allowing it to keep the 5 percent value-added tax rate after 2007 for heat and hot water supplies instead of it being raised to 19 percent, Finance Minister Bohuslav Sobotka said Jan. 29. The rate will also stay at 5 percent for approximately 80 percent of new housing construction.

DEBT - The PPF financial group has offered to pay 570 million Kč to cover the debts of food company Setuza, according to media reports. The offer is part of PPF's bid to buy Setuza, which currently owes 465 million Kč. If the debt is not sold to PPF, state bailout agency ČKA will transfer it to the Farming Forestry Support and Guarantee Fund.

EXPANSION - The Lighthouse Group, a property developer, is planning to expand its activities in the Czech Republic and has not ruled out the possibility of launching an initial public offering on the Prague Stock Exchange, the Czech Business Weekly Online reported Jan. 29. The company has operated here since 2000.

RATES - The board of the Czech National Bank (ČNB) voted to keep interest rates flat at 2 percent during a Jan. 26 meeting, allaying fears that the bank would cut rates. Miroslav Plojhar, an analyst at Citibank, said the ČNB will not cut interest rates in the coming months because the German economy, the largest in Europe, is showing signs of strengthening.

TRAVEL - Czechs spent a record 28 billion Kč on package holidays in 2005, according to data from Mag Consulting, which monitors the tourism industry. Exim Tours saw interest in packages increase more than 30 percent that year. The spike in sales is a result of the fact that the Czech standard of living is rising with the strengthening Czech economy, according to analysts.