President Jan Veleba of the Agrarian Chamber announced that farmers will block Austrian border crossings sometime this month in protest of rising pork imports, Hospodářské noviny reported Mar. 13. Veleba said retailers are costing Czech farmers 2.4 billion Kč ($110 million) each year. The Agriculture Ministry is promising to bring the two sides together for talks.

The Cabinet has approved a plan charting the public finance reforms necessary to lower the country’s deficit, Mladá fronta Dnes reported Mar. 13. The plan acknowledges that the deficit will be at 4 percent this year, rather than 3.3 percent, and sets a path to lowering the deficit to 2.3 percent by 2010.

In a surprise, the economy grew 6.1 percent in 2006, according to figures released by the Czech Statistical Office Mar. 9. This tied the country’s previous record, set in 2005. Analysts had expected 5.9 percent growth for 2006, and still expect a small slowdown this year.

Work has begun on the second phase of the government’s electronic toll system for commercial vehicles, Transportation Minister Aleš Řebíček told the daily Hospodářské noviny Mar. 9. This will expand tolls to major two-lane highways. Plans for the third and fourth phases, which will expand tolls to regional and local roads, are under way.

Lesy ČR canceled 6 billion Kč worth of controversial tenders Mar. 8, the company announced. January’s windstorms damaged two-thirds of the country’s lumber crop, which these tenders did not reflect. Less & Forest, which held 60 percent of the tenders, plans to complain to the European Union’s anti-trust agency about the decision.

Czech Airlines lost 397 million Kč last year, 99 million Kč less than in 2005, the daily Lidové noviny reported Mar. 9. The airline’s performance was boosted by a 4.7 percent growth in passengers. The company plans to net a profit of 42 million Kč this year, its president said.

The Cabinet agreed to increase farm subsidies taken from EU funds to 10 billion Kč this year, up from 8.8 billion Kč last year, the daily Mladá fronta Dnes reported Mar. 8. Domestic funds will provide another 7 billion Kč in payments. Farmers now receive subsidies equal to 70 percent of those paid to farmers in the EU 15.

GROCERS

REWE/Billa has changed plans and will not immediately close any Delvita supermarkets once it has taken over the chain, Hospodářské noviny reported on Mar. 12. Where Billa and Delvita shops are located close to each other, the company will monitor the performance of each store, deciding then if either should close. Delvita’s selection of products also will not change.