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September 7th, 2008
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RECORD The Anti-Monopoly Office (ÚOHS) imposed a fine of 500,000 Kč ($22,450) on the Labor and Social Affairs Ministry for placing a 500 million Kč order for its communications system without a tender, the ÚOHS said Oct. 9. It is the highest fine ever imposed on a state body by the ÚOHS. The ministry may appeal the verdict. The ÚOHS is investigating a similar IT Ministry order for 610 million Kč.

MIGRANTS Foreigners from the former Soviet bloc who are working illegally in Prague's service industry are often university graduates, according to a study presented at a conference on illegal workers Oct. 9. The study found that two-thirds of those workers graduated from university and half come from small towns and villages. Some 95 percent arrived legally and were granted two-week tourist visas.

HOUSING Czechs have taken more than 300 billion Kč in housing loans, according to a study by the server Mesec released Oct. 9. Mortgage and construction loans have increased 10 times in seven years, but Czech household debt remains below the EU average, the study said. Nearly 3.5 percent of Czechs have housing loans.

DEBT The government's yearly debt reached 746.3 billion Kč at the end of September, up 17.4 billion Kč since June, the Finance Ministry said Oct. 9. Short-term debt made up 19.5 percent of the overall figure, up from 17.6 percent at end of June. Analysts say the current debt is relatively low compared to neighboring countries, but they warn that it may grow to dangerous level in the future.

WORKERS A growing number of European Union citizens are working in the Czech Republic, the Labor and Social Affairs Ministry said Oct. 5. More than 93,000 citizens from other EU countries worked in the Czech Republic in 2005, up nearly 30 percent from 2004. At least 75,000 of them came from neighboring Slovakia. Poles and Germans made up the next largest groups.

UNIPETROL Former Prime Minister Jíři Paroubek said Oct. 9 that detectives have no evidence to convict Czech citizens in connection with the privatization of Czech petrochemical company Unipetrol in 2004. He made the annoucement after being questioned by Czech police. Polish state attorneys started another round of questioning in Prague to clarify the company's sale to Poland's PK Orlen, which was allegedly corrupt.

LEGO The toy manufacturer LEGO has teamed up with DHL to open a new European distribution center in Jírny, 10 kilometers (6.2 miles) east of Prague. The facility will include standard logistics activities and storage, creating nearly 600 jobs by 2007. The distribution center currently employs 280 people.

JOBLESS The unemployment rate fell to 7.8 percent in September, down from 7.9 percent in August, the Labor and Social Affairs Ministry said Oct. 9. The number of job seekers dropped to 427,331. Analysts said the decline in unemployment was due to an increase in seasonal work. Slovak unemployment reached 12.6 percent, while the jobless rate in Poland stood at 14.9 percent.


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