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Carolina (English) No 271
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STUDENTS' E-MAIL NEWS FROM CZECH REPUBLIC
Faculty of Social Science of Charles University
Smetanovo nabr. 6
110 01 Prague 1
Czech Republic
e-mail: CAROLINA@cuni.cz
tel: (+420 2) 24810804, ext. 252, fax: (+420 2) 24810987
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
C A R O L I N A No 271, Friday, January 9, 1998.
Out of 1997 and into 1998 (December 17-January 7)
Tosovsky's Government Should Lead to Early Elections
President Vaclav Havel interrupted a holiday in the Canary Islands
to return to Prague and name Josef Tosovsky's new government January 2.
(For a profile on former-future Central Bank Governor Tosovsky, see
Carolina 270). There are nine new ministers, while eight were in former
Prime Minister Vaclav Klaus' cabinet. Six of the ministers are
independent, the Christian Democrats (KDU-CSL) and the Civic Democratic
Alliance (ODA) each hold three ministers' chairs, while four chairs
remain for what was the strongest coalition party. The Civic Democratic
Party (ODS) is distancing itself from the ministers, saying they
represent themselves, and that ODS is no longer a ruling party.
New government officials, besides the prime minister, are
Transportation Minister Petr Moos (independent), Interior Minister Cyril
Svoboda (KDU-CSL), Regional Development Minister Jan Cerny (ODS),
Culture Minister Martin Stropnicky (independent), Health Minister Zuzana
Roithova (independent), Education Minister Jan Sokol (independent),
Government spokesman Vladimir Mlynar (independent) and Defense Minister
Michal Lobkowicz (ODS).
Environment Minister Jiri Skalicky (ODS), Trade Minister Karel
Kuhnl (ODA), Justice Minister Vlasta Parkanova (ODA), Finance Minister
Ivan Pilip (ODS) and Labor Minister Stanislav Volak (ODS) remain.
Agriculture Minister Josef Lux and Mirslav Vyborny, who will become the
head of the Legislative Council, still represent KDU-CSL. Foreign
Minister Jaroslav Sedivy (independent) will also keep his post.
Tosovsky's goals as prime minister are for the Czech Republic to
enter the EU and NATO, make the government more transparent and to cut
down on crime and corruption.
Social Democrat Chairman Milos Zeman said his party will only
support the current Cabinet if there will be early elections in June,
adding that November elections are unacceptable. ODS Chairman Klaus is
also pushing for early elections. Even the remaining Communists and
Republicans in Parliament want 1998 elections, but will not support the
current government in any case. Without early elections and with voter
confidence falling, ODA may not have enough votes to remain in the
government. Gabriela Podzimkova/Andrea Snyder
Who's New in the Government
- Jan Cerny (Regional development, 38 years old) - the new ODS
Parliament club chairman was a veterinarian first. During the last
government he was chairman of the Agricultural Committee in Parliament,
new he is a member of the Petitions Committee.
- Michal Lobkowicz (Defense, 33) - this descendant of a noble family
studied geology at the Natural Sciences College and translating at the
College of Humanities of Charles University. He was vice chairman of the
Foreign Committee in Parliament in 1992. Since 1993 he has worked as
chief of staff for Josef Zieleniec at the Foreign Ministry.
- Vladimir Mlynar (Government Minister-Spokesman, 31) is the son of
a Prague Spring protagonist and is the youngest member of the Cabinet.
He worked with Lidove noviny during the samizdat era. In 1991 he began
working with the weekly Respect and became Editor-in-Chief three weeks
later.
- Petr Moos (Transportation, 52) is the Dean of the Faculty of
Transportation at the Technical University. He is a member of the Czech
Railways Supervisory Board.
- Zuzana Roithova (Health) - the second woman in the Czech Government,
currently director of the Prague branch of the General Faculty Hospital
in Vinohrady.
- Jan Sokol (Education, 61) is a philosopher, historian and translator.
This Charter 77 signatory entered the political scene in 1990, when he
represented the Civic Forum in the Federal Assembly. He ran
unsuccessfully as a KDU-CSL independent for the Senate elections. He
teaches at the Education College and Humanities College in Prague.
- Martin Stropicky (Culture, 41) left a successful acting career in
1990 to prepare for the life of a diplomat at the Diplomatic Academy in
Vienna. He worked at the Foreign Ministry and was appointed ambassador
to Portugal in 1993. In the fall of 1994 he began managing the
representative office in Italy.
- Cyril Svoboda (Interior, 41) - until now the Foreign deputy minister,
he also led the delegation for negotiations about EU membership. Since
1992 he was made director of the Office of the Government, and in 1996
was made the interim leader of the Czech Government Legislative Council.
Gabriela Podzimkova/Andrea Snyder
ODS Tension
The tension in the Civic Democratic Party (ODS) is growing. Talk of
splitting the party has grown after Ivan Pilip and Jan Ruml's showdown
with former Prime Minister Vaclav Klaus at the December congress, and
the slight of the party's Parliament club leadership recommending four
people to government posts without party leadership approval.
The gremium, the executive council and the Parliament club have all
agreed that the ministers represent themselves instead of ODS. In spite
of that, disagreements seem unavoidable. Former Interior Minister Ruml
said he will leave the party in 2 weeks if the party platform does not
change. Experts say that if the platform does not change, a new party
may be formed, or ODS members who do not agree with it may leave for the
Civic Democratic Alliance (ODA). Jakub Svab/Andrea Snyder
Personnel Changes Hit the Ministries
The newly named government is making its first personnel changes.
Economic Deputy Defense Minister Miroslav Kalousek of the Christian
Democrats, who has been criticised many times over the years for the
cloudy processes of army tenders, is leaving his post. Although he is
saying he would not have stayed, the press is reporting that he would
have been forced to leave.
Zuzana Roithova is sweeping corners at the Ministry of Health.
Deputy Health Minister Josef Suchopar was replaced by another ministry
employee, Michal Cabrnoch. There is no longer a press spokesperson.
David Marx, who worked under Roithova at the Vinohrady Hospital, is now
her chief of staff. Jakub Svab/Andrea Snyder
Czech-German Future Fund Established, Trustees Not Yet Named
The Future Fund, which should pay damages to about 8,000 Czech
victims of Nazism, formally came into being after an exchange of
ratified notes December 29. Czech Foreign Minister Jaroslav Sedivy and
German ambassador to Prague Anton Rossbach presented the notes. The
fund, established in the Czech-German Declaration, will be based on
Czech law, and will be seated in Prague.
Germany is to contribute 140 million deutschmarks to the fund by
2001, while the Czechs are to provide 440 million crowns. However, the
fund is not yet functional, because the fund's administrative council
has not been named. Both sides sharply contest the staffing of this
body, which nearly led to a postponement of its establishment.
Gabriela Podzimkova/Denisa Vitkova
Diverse Reactions to Havel's New Year's Speech
In the wake of the holiday season, the New Year in the Czech
Republic was welcomed with the traditional speech of the president.
Again, President Vaclav Havel kept up the tradition, although the
speech was pre-recorded at the residence of the King of Spain on the
Canary Islands, where Havel is spending a convalescent vacation until
January 12. Havel called on Czech citizens to increase their
socio-political activity, and especially for their participation in the
series of elections scheduled in 1998 - municipal, senate, and probably
also early parliamentary elections. This time, he avoided sharp
commentary on the domestic political scene and simply said the situation
was not overly joyful.
The speech met with diverse reactions. While most politicians,
including Social Democrat Chairman Milos Zeman, welcomed this speech,
Civic Democratic Party Vice Chairman Miroslav Macek called it a civics
lesson for fifth- or sixth-graders. Jakub Svab/Denisa Vitkova
Doctors' Unions to Discuss Strike
The reason for prepared protest acts this time is not doctors'
wages but a controversy between Physicians' Union Club (LOK) Chairman
David Rath and Motol Hospital. The hospital has not renewed Rath's
part-time employment contract, which expired December 31. Hospital
Director Helena Rognerova does not deny that the major reason the
contract has not been renewed is Rath's vocal criticism and not any
professional shortcomings. She said Rath's activities, including last
year's spring strike in protest against the recall of one chief
physician, caused the hospital to lose 4 million crowns. LOK calls the
hospital's position an attack on freedom of expression and an attempt to
intimidate a union leader. Whether doctors will strike or declare strike
readiness will be decided at the conference of local LOK associations.
The fact that Rath came up with the most extreme response
- a strike - has caused more controversy. Many lawyers say Rath would
win if he took the case to court. Rognerova considers the case closed.
According to her, Rath is no longer a hospital employee. She said, "And
if Dr. Rath thinks anything else, let him take it to court." Labor union
chief Richard Falbr supports Rath: "I would be glad if the organizations
in the Czech-Moravian Chamber (of Unions) would act the same way in such
a case," Falbr said, according to daily MF DNES.
Ales Bartl/Denisa Vitkova
NEWS IN BRIEF:
* After a few months of intentionally avoiding the reception of
a subpoena, and thus avoiding trial, neo-Fascist Republican Chairman
Miroslav Sladek was arrested January 6. He is to be tried for his
statement "We can be only sorry that during World War II we killed so
few Germans," which he made on the day of the signing of the
Czech-German Declaration. Because his earlier probation has not expired,
he could be subject to a jail term.
* On the December 19 television discussion program Seven Days
Political Club member Jan Kacer would not rule out the club's
transformation into a political party.
* A lung transplant was performed in the Czech Republic for the first
time December 23 by a team at the third surgical clinic of the Prague
Faculty Hospital led by Pavel Pafko, who operated on President Vaclav
Havel in 1996. On Christmas Eve, doctors at Prague's IKEM performed the
3OOth heart transplant here.
* The Vltava Publishing House, which controls most Czech regional
newspapers, purchased the significant Prague regional daily Vecernik
Praha (Prague Evening News).
* The daily Prace (Work) stopped publishing December 31, after 52
years of existence, because it was unprofitable for its owner, Czech and
Moravian Typography.
* Because the conflict of interest law came into effect January 1,
Senator Vaclav Benda left his position as director of the Office for
Documentation and Investigation of the Crimes of Communism.
* Starting January 1, drivers' licenses received by Czech drivers in
Slovakia before the end of 1992 are no longer valid. Driving licenses
can be renewed only after another test.
Jana Ciglerova, Jakub Svab/Denisa Vitkova
FROM SLOVAKIA
Meciar's Position Weakening
If elections had been held at the end of last year in Slovakia, the
opposition Slovak Democratic Coalition (SDK) would have beaten the
ruling Movement For Democratic Slovakia (HZDS) in five regions out of
eight, according to a poll conducted by the KMG agency.
In the Kosice region 36.9 per cent of respondents would vote for
SDK and 7.4 per cent for HZDS, in the Presov region the proportion would
be 37 per cent to 17.1 per cent. SDK would also win in the Nitra region
by 19.7 per cent, in the Bratislava region by 9.8 per cent and in the
Zilina region by 4.9 per cent. HZDS would be more successful in three
regions: in the Trencin region by 4.6 per cent, in the Trnava region by
2.2 per cent and the Banska Bystrica region by 1.8 per cent.
The coalition arose as an association of opposition parties
including Jan Carnogursky's Christian Democratic Movement (KDH) and
Mikulas Dzurinda's Democratic Union (DEU).
Jana Ciglerova/Veronika Machova
Forced Administration for Third-Largest Financial Institution
The problems of the Investment and Growth Bank (Investicna
a rozvojova banka - IRB) came to a head before Christmas. The banking
house, the third-largest in the country, stopped allowing clients to
withdraw money and December 18 closed all its branches for small
depositors. One day later the bank was placed under forced
administration.
According to unofficial sources, the bank had a shortage of 6 milion
crowns. About 800,000 crowns of that can be attributed to the
government's decision not to contribute to loans for apartment
construction. The remaining money is probably in the East Slovak Iron
Works (Vychodoslovenske zelezarny), said National Bank of Slovakia
Governor Vladimir Masar indirectly. The colossus and its related
companies control about 43 per cent of IRB's shares. Masar said the
cause of the problem is bad government policy, while the finance
minister blamed the National Bank.
Before Christmas the bank began paying out deposits to small
clients, because these accounts are guaranteed by the National Bank. The
National Bank decided to provide enough money to stabilize the situation
in IRB. Karolina Kucerova/Michael Bluhm
ECONOMY
Kozeny Will Buy His Own Holding
Viktor Kozeny is going to become the sole owner of all assets of
the Harvard Industrial Holding. He will in essence pay 600 crowns
a share to the more than 300,000 shareholders of the privatization fund.
The holding will then be liquidated.
Kozeny's Harvard Capital Management Worldwide won the tender for
the assets of the liquidated holding, given an accounting value of 19
billion crowns, because it offered 10 billion crowns for the assets,
with payment by the end of 1999.
For Harvard shareholders it means they will get 12,000 crowns per
voucher book (books of 10 vouchers were sold for slightly more than
about 1,000 crowns during the two rounds of privatization) but they will
have to wait for the money for up to two years. Small investors came up
short with their hopes (after the announcement of the liquidation about
two months ago) for a price somewhere between 700 crowns and 1,100
crowns with payment this year.
Most financial anlysts appreciate Kozeny's strategy of offering
shareholders 600 crowns per share (the stock's price on the
over-the-counter market is about 370 crowns), although the value of the
holding's assets is much higher and the profit will belong to Kozeny.
The holding invested mainly in Russia, where last year was rich in
overwhelming returns. Analysts agree that if Kozeny were selling, the
real value of the shares would be about 3,000 crowns per share.
Jiri Zizka/Veronika Machova
Railway Workers Sign Collective Agreement
After lengthy negotiations, Czech Railways management signed
Deecember 31 a contract with the unions which resolved the most critical
collective bargaining issue in the country. The sides agreed on
a half-per-cent raise in real wages, while further wage increases will
be discussed according to increases in productivity. Unionists said
average wages for railway workers will increase by about three per cent.
Vacation (five weeks to six weeks depending on profession and
seniority), workweek (for some workers less than 40 hours) and other
benefits should remain.
Although a strike was averted, union leaders still said they would
consider a strike if railway management were misusing company assets or
laid off too many workers. Jiri Zizka/Michal Bluhm
Crown Reaches Record Low against Dollar
The crown's 1998 debut was not much of a success. The crown dropped
dramatically against the deutschmark January 5, and reached a record low
against the dollar. At the end of January 5 trading, the crown stood at
35.50 to the dollar, down .60 from the morning.
Currency traders explain the drop as partly due to the mark's
international dip and the dollar's rise. In general, the crown is
declining because of foreign investors' mistrust in the young market.
The crown has not been helped by the recent domestic political
confusion. The eventual vote of confidence in the government of Prime
Minister Josef Tosovsky will be an important signal for investors.
Jiri Zizka/Michael Bluhm
Budegte Defiucit Rises Slightly
The state coffers showed a deficit of almost 8 billion crowns
December 30. The final 1997 figure might be slightly lower, according to
the Finance Ministry's Budget Department. At the end of November the
deficit was 6.2 billion crowns, but December's increase still
corresponds to the ministry's predictions, which allowed for a deficit
of 5 billion crowns to 8 billion crowns.
The main reason for the deficit is the July flood, which caused
damages estimated at 60 bililon crowns. Jiri Zizka/Michael Bluhm
1998 Brings Higher Prices
* January 1 brought into effect the new Value-Added-Tax Act. Taxes on
hard fuels, gas and electric energy increased from 5 per cent to 22 per
cent, which will mean an avarage 16-per-cent increase in the price of
these commodities.
* New sales taxes also came into effect for fuel, food and tobacco
products. The increase will most affect consumers of alcoholic
beverages.
* Drivers will not be affected only by the higher sales taxes on fuel,
but also by new compulsory insurance, which will increase by an average
of 47 per cent. The price of highway stamps also increased by 100 per
cent (from 400 crowns to 800 crowns).
* By government decree minimum wages also increased from 2,500 crowns
per month to 2,650 crowns per month. Unemployment compensation, however,
decreased by 10 per cent. Jiri Zizka/Michael Bluhm
Exchange Rates at the Czech National Bank - valid from January 9
Australia 1 AUD 22.962
Belgium 100 BEF 95.517
Great Britain 1 GBP 58.545
Denmark 1 DKK 5.175
Finland 1 FIM 6.509
France 1 FRF 5.886
Ireland 1 IEP 49.200
Italy 1000 ITL 20.061
Japan 100 JPY 27.080
Canada 1 CAD 25.193
Luxemburg 100 LUF 95.517
Hungary 100 HUF 17.442
Netherlands 1 NLG 17.484
Norway 1 NOK 4.796
New Zealand 1 NZD 20.511
Poland 1 PLN 10.195
Portugal 100 PTE 19.273
Austria 1 ATS 2.801
Greece 100 GRD 12.475
Slovakia 100 SKK 102.415
Germany 1 DEM 19.705
Spain 100 ESP 23.257
Sweden 1 SEK 4.465
Switzerland 1 CHF 24.399
USA 1 USD 36.104
ECU 1 XEU 38.971
SDR 1 XDR 48.198
CULTURE
Father-and-Son Project
Only a few names sound to a Czech cultural ear so delicious as
"Eben." Petr Eben became famous as a music composer, but his creative
activities reach far beyond music. His son Marek, a successful musician
and actor, is also one of the most popular Czech entertainers and
showmen.
The product of cooperation between father and son is an album
released in December, called "Still Life of Winnie The Pooh" and
"Labyrinth of the World and Paradise of the Heart." Both projects have
their origins in the 70's, when Marek Eben was acting in an adaptation
of A.A. Milne's book "Winnie the Pooh" at the Viola Theater and Petr
Eben was introducing his organ improvisations of Comenius' "Labyrinth of
the World and Paradise of the Heart" around the world. Marek Eben's
fresh lyrics are complemented by his father's organ on their CD.
"There was such feeling in some parts of my Dad's work that I had
a lot to do not to be touched by it and be able to concentrate on my
recital," Marek Eben said to daily MF DNES December 20.
Ales Bartl/Jana Ciglerova
Adriena Simotova Releases Compilation
One of the most remarkable personalities of Czech graphic arts,
Adriena Simotova, released her lyrics, comments, notes and poems in
a volume called "A Head to Look Through," in cooperation with the Gema
Art Gallery and Publishing House. Ales Bartl/Jana Ciglerova
SPORTS
Dusan Uhrin's Bronze Farewell to National Soccer Team
Czech soccer players returned home from Riyadh with bronze medals
and more then 1 million USD from the FIFA Federation Cup. The 1-0
victory (goal: Lasota) over Uruguay gave the Czechs their final position
and partly made up for the disappointment from failing to qualify for
this year's World Cup.
Dusan Uhrin, who is leaving the team for a United Arab Emirates
league team, could also take satisfaction from Vladimir Smicer, who
scored five goals and was chosen to the tournament all-star team.
The national team will be led by Jozef Chovanec, who is leaving his
spot coaching extraleague leader Sparta Praha.
Milan Eisenhammer/Mirek Langer
Vsetin Hockey Team Successful in Extraleague and European League
The Olympic season schedule is full of matches, with two extraleague
rounds played at the end of the year. After the first one in the new
year, three Moravian teams still lead the standings, with last year's
champion Vsetin in first. Vsetin succeeded also in the European Hockey
League, advancing to the semifinals past Slovak champion Slovan
Bratislava after 3-6 and 5-0 results. The next two places in the
Extraleague standings belong to Vitkovice and Trinec, followed by both
Prague squads, Sparta and Slavia. Karlovy Vary and Opava are in last.
33rd round results: Vitkovice - Vsetin 5-2, Slavia Praha - Opava
1-1, Zlin - Litvinov 2-6, Jihlava - Sparta Praha 3-5, Ceske Budejovice
- Plzen 5-6, Karlovy Vary - Pardubice 2-4, Kladno - Trinec 4-0.
34th round results: Trinec - Litvinov 6-0, Vsetin - Jihlava 4-1,
Opava - Zlin 3-4, Kladno - Vitkovice 1-1, Plzen - Slavia Praha 3-6,
Sparta Praha - Karlovy Vary 8-3, Pardubice - Ceske Budejovice 2-3.
35th round results: Vitkovice - Trinec 4-1, Slavia Praha - Pardubice
3-1, Jihlava - Kladno 1-0, Zlin - Plzen 2-3, Litvinov - Opava 9-2, Ceske
Budejovice - Sparta Praha 2-3.
Standings: 1. Vsetin 47 points, 2. Vitkovice 47, 3. Trinec 46, 4.
Sparta Praha 42, 5. Slavia Praha 41, 6. Plzen 40, 7. Litvinov 39, 8.
Jihlava 36, 9. Pardubice 33, 10. Zlin 30, 11. Ceske Budejovice 28, 12.
Kladno 25, 13. Karlovy Vary 18, 14. Opava 18.
Milan Eisenhammer/Mirek Langer
SPORTS IN BRIEF
* The Czech national hockey team defeated Russia 1-0 in the Baltica
Cup in Moscow and won its second tournament of the Euro Hockey Tour.
Only one tournament in Sweden remains, and the Czech team leads the
total standings with four points more than all three other participants:
Finland, Sweden and Russia.
* After penalty shots, the Czech junior hockey team lost to
Switzerland 3-4 in the bronze medal match in the Junior World
Championships in Finland, and thus finished out of the medals for the
fifth consecutive year.
* Germany's Schalke 04 midfielder and Czech national team captain Jiri
Nemec won the 1997 Golden Ball as the best Czech soccer player.
Journalists voted Pavel Nedved (Lazio Rome, Italy) second and Vladimir
Smicer (RC Lens, France) third.
* Karel Poborsky, star of the Czechs' Euro 96 second-place team, left
England's Manchester United for the Portuguese team Benfica Lisbon.
* After his first three not-so-successful Intersportturnee events,
Frantisek Jez finished 14th in the last one in Bischofshofen and became
the second ski jumper to meet qualification criteria for the Olympic
Games in Nagano. Milan Eisenhammer/Mirek Langer
WEATHER
The snow announced in Carolina's last weather forecast never came.
It even got warmer during Christmas, so we could hear the desperate
longings of "I'm dreaming of a white Christmas" coming from under the
Christmas trees.
The average temperature fluctuates around 5 degrees Celsius/39
degrees Fahrenheit; only some highlands can proudly announce the magic
0 degrees Celsius/32 degrees Fahrenheit. Yes, there is about half
a meter of snow in the Giant (Krkonose) Mountains, but it is wet; and
the situation is even worse in other Czech mountains. In the lowlands,
for instance, it is heavily raining.
As for the weather forecast for the next days, the end of this week
is supposed to be even warmer, so there is a lot to look forward to. And
a little recommendation to skiers: the Czech mountains are not worth
your money - invest in the Alps. Karolina Kucerova\Jana Ciglerova
English version edited by Michael Bluhm
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