Friday News Briefing

NEWS  

POLL The opposition Social Democrats (ČSSD) are extending their lead over government parties in terms of public support, according to the latest poll results released by the Center for Public Opinion Research at the Academy of Sciences (CVVM). If an election were held today, ČSSD would take 35 percent of the vote, the Civic Democrats (ODS) 21.5 percent, the Communists (KSČM) 16.5 percent, TOP 09 13.5 percent, the Christian Democrats (KDU-ČSL) 5 percent and Public Affairs (VV) 3.5 percent. Now a member of the governing coalition, VV would not even make it into Parliament with those numbers. Another coalition party, TOP 09, has seen its rating drop in recent months, while the KSČM has seen its potential share of votes grow some 6 percent of the total vote since early summer.  

GRAFT Two leaders from the team investigating suspicious military procurements will leave the police department, the daily Mláda fronta Dnes (MfD) reported. František Zahalka and Petr Kroemer are investigating the purchase of Pandur armored personnel carriers and Tatra trucks, respectively. The inquiry into the Pandur purchase was launched last year after MfD published secretly recorded interviews with two former managers of the Austrian producer of Pandurs, Steyr. Both said large payments were promised to Czech politicians in connection with the tender. The investigation into the alleged corruption accompanying the purchase of Tatra trucks for the military is based on a testimony of former U.S. Ambassador William Cabaniss.

KALOUSEK ČSSD leader Bohuslav Sobotka is calling for the resignation of Finance Minister Miroslav Kalousek in the wake of a bizarre slapping incident that took place Sept. 21, the Czech News Agency (ČTK) reported. A man in his early 20s allegedly shouted at Kalousek as the minister walked from Parliament to a government meeting. Kalousek later conceded at a press conference that he had struck the man, saying that "an impertinent brat was slapped four times." Sobotka, speaking in the Chamber of Deputies, said, "I believe that ministers who slap citizens on the sidewalk have no place in decent political culture."

BUSINESS

INTEREST RATES The Czech National Bank voted to keep the benchmark interest rate at the historically low 0.75 percent Sept. 22, the bank announced. Supervisory board members at the bank have kept the low rate since May 2010, and analysts say the decision to maintain the rate came as no surprise in light of the current economic climate. Economic growth forecasts are lowering fast, and it is likely the Czech Republic's growth in the coming year will be very weak, below the one percent level, according to Michal Brožka, an analyst with Raiffeisenbank.

BUDVAR Beer maker Budejovický Budvar won a case at the European Court of Justice related to the use of the Budweiser brand name in the United Kingdom, daily Hospodářské noviny (HN) reported. The company has long been entrenched in a legal battle with the American-owned Anheuser-Busch over labeling on products sold internationally with the Budweiser name. Meanwhile, Budvar raised sales in Poland 276 percent year on year in the first half of the year, from less than 2,309 to 8,681 hectoliters, ČTK reported Sept. 22. Consumption of imported beers grew 29 percent in Poland over the period, whereby consumption of domestic beer grew just 1 percent. Budvar exports beer to almost 60 countries.

TAXES A bill calling for an extension of the holding period for tax-free sales of securities from six months to five years starting in 2013 passed its first reading in Parliament, HN reported Sept. 23. For investors who sell their securities before the end of that period, the law would increase the tax from 15 percent to 19 percent. The Finance Ministry has said it is not fair if investors are exempt from both the dividend tax and the capital gains tax on securities. Securities investors told HN that the tax will not raise much money and will slow the development of capital markets.  

 WEATHER

Prague, Czech Republic; Clear Skies; High: 18 C, Low: 11 C

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