Cigarette prices are likely to increase less than expected. New Finance Minister Vlastimil Tlust˘ said Sept. 11 that he plans to change a proposed hike on excise duties approved by the previous government that would have increased prices of a pack of cigarettes 12 to 15 Kč (55 to 68 U.S. cents). European Union regulations demand prices increase a minimum of 8 Kč.

BAKERIES

Delta Pekárny and Odkolek bakeries will close a third of their Czech branches and lay off more than 1,000 employees after a recent merger, Hospodáfiské noviny reported Sept. 12. The Anti-Monopoly Office approved the merger between the two companies in February, making Delta-Odkolek the largest Czech bakery, covering nearly a quarter of the market.

WORKERS

Czechs work an average of 37.3 hours per week, the second-lowest average in the EU, according to a study by the European Foundation for the Improvement of Living and Working Conditions. Only Slovenians work less, averaging 37.1 hours per week. Poles spend 42.8 hours per week at work — the highest total in the EU.

ECONOMY

Czech gross domestic product (GDP) relies increasingly on household consumption rather than foreign trade, according to data released by the Czech Statistical Office Sept. 8. Household consumption accounted for 30 percent of the country's GDP in the first six months of 2006, compared to 20 percent last year. GDP growth slowed to 6.2 percent in the second quarter, down from 7.1 percent in the first quarter.

EMPLOYMENT

The Czech Republic spends just 0.5 percent of its GDP on job creation and unemployment training, one of the lowest totals in Europe, according to Eurostat data released Sept. 10. Only Bulgaria and Romania pay less for job development. Government spending on the employment policy rose 3.9 percent over the past year, but the number of people entitled to unemployment benefits dropped nearly 5,000.

o2

Telecommunications operator Telefónica O2 (formerly Česk˘ Telecom) has seen a drop of nearly 1 million customers registering for fixed-line telephone connections since 2000. The number of fixed lines fell to 2.84 million due partly to the growing popularity of mobile telephones, the number of which has increased 7.5 million in the past six years.

COAL

Coal-mining company Mostecká uhelná, which controls nearly one-third of the Czech coal market, will increase coal prices more than 20 percent in the coming years, the daily Mladá fronta Dnes reported Sept. 11. The company is also unwilling to sign long-term contracts that would set coal prices for new power plants planned for construction, the paper reports.

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