Wednesday News Briefing

NEWS

TREATY The Czech Republic is unlikely to join the European Union's fiscal responsibility treaty in the near future, Prime Minister Petr Nečas told daily Lidové noviny Feb. 1.  He added that a referendum vote - which, in his view, would be necessary to put the treaty into effect - is not feasible in the current political scene. However, he did not rule out the country may join the fiscal pact in the longer term. Nečas' decision was lauded by President Václav Klaus, who opposes the treaty and has said he would not sign it into law.

TENDERS The lower house passed a bill Jan. 31 aimed at creating greater transparency in the issuance of state tenders, the Czech News Agency (ČTK) reported. MPs overrode a Senate revision that would have required tender recipients to disclose their corporate structure, including the identity of anonymous shareholders and other undeclared stakeholders.

HOMELESS Prague centers are implementing emergency measures to protect the city's homeless from extremely cold temperatures, ČTK reported. Day homeless centers will remain open at night, and the city's floating shelter on the boat Hermes will take in clients even during daytime hours. City Hall will also erect an inflatable tent with some 50 additional beds on Rohanský Island Feb. 1. The news came after a homeless woman froze to death in Prague-Veleslavín on the night of Jan. 31.

BUSINESS

GROWTH FORECAST The Finance Ministry has issued a new, slightly more optimistic growth forecast for the Czech Republic that puts GDP growth this year at 0.2 percent. Finance Minister Miroslav Kalousek said that despite the more positive forecast, there is still a great deal of uncertainty with regard to the eurozone and that a repeat of the kind of recession that took place in 2008-09 cannot be ruled out. The ministry expects growth in 2013 of 1.6 percent.

ENERGY Czech electricity and gas trading company Lumius raised sales about 1 billion Kč year on year to 9.2 billion Kč, the company announced Jan. 31. Lumius expects profit for 2011 to reach 165 million Kč, compared with about 350 million Kč in 2010. The company supplied 2.5 terawatt-hours (TWh) of electricity and 4.5 TWh of gas to end customers last year, but because of the negative impacts of the economic crisis and a fall in production registered by consumers, Lumius expects sales in 2012 won't be higher than 9.5 billion Kč.

DEBT Debts of households to banks and financial institutions grew in December 9.35 billion Kč to 1.12 billion Kč, according to data published by the Czech National Bank Jan. 31. "Czech household debt is growing at a slower pace than in the pre-crisis years, but the rate is still markedly higher than growth in the prices of goods and real estate that households buy on credit," PwC Audit Partner Petr Kříž said. Demand for new loans is likely to continue this year, he said. Overall debts of Czech households are below the West European average, but low-income households may have problems with loan repayment, Kříž said.

WEATHER

Prague, Czech Republic; Clear Skies; High: -6 C, Low: -16 C

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