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Carolina (English) No 361
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STUDENTS' E-MAIL NEWS FROM THE CZECH REPUBLIC
Charles University in Prague
Faculty of Social Sciences
Smetanovo nabr. 6
110 01 Prague 1
Czech Republic
e-mail: CAROLINA@mbox.fsv.cuni.cz
tel: (+4202) 22112252, fax: (+4202) 24810987
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
C A R O L I N A No 361, Friday, February 4, 2000.
FROM THE EVENTS OF THE PAST WEEK (January 26 - February 2)
Third Version of Budget Passed into Second Reading
The Civic Democratic Party (ODS) helped the Social Democrat
Government pass the first reading of the 2000 state budget bill.
Expenses are projected at 627.3 billion crowns, income is 592.1 billion
crowns, shrinking previously proposed deficits of 39.8 billion crowns
and 42 billion crowns to 35.2 billion crowns. The budget, described by
Finance Minister Pavel Mertlik as "fiscally neutral," was supported by
all Social Democrat deputies and all but two ODS deputies. The Freedom
Union, the Christian Democrats and deputy Marie Machata were against the
bill, while the Communists abstained.
Agreements signed by ODS and the Social Democrats January 26 (see
Carolina 360) secured passage of the budget proposal. The agreements,
framed as amendments to the parties' Opposition Contract, assure annual
decreases in budget deficits culminating in a balanced budget for 2003.
ODS Chairman Vaclav Klaus said he does not consider passing the budget
a betrayal of his voters, saying the budget could not be constructed in
any other way.
The proposal was heavily criticized by opposition deputies. The
Communists accused the Government of making concessions to the right.
"The Government is with the banks and not at all with the unions," said
Communist Party (KSCM) Vice Chairman Miloslav Ransdorf for the daily
Hospodarske noviny.
The provisional budget now in effect did not expire with the vote,
a definitive vote on the budget will be taken in early March.
Prime Minister Milos Zeman agreed to make changes in the Government
if the budget passed. If he keeps his promise, he will present the
changes to President Vaclav Havel next week.
Ondrej Maly/Ondrej Maly
ODS and CSSD Deputies Pass Constitutional Amendments
The Civic Democratic Party (ODS) and the ruling Social Democrats
partly fulfilled the amendment to their Opposition Contract regarding
constitutional changes (see Carolina 297). The Chamber of Deputies
January 28 passed with the votes of both parties the changes that have
been repeatedly criticized by the opposition.
According to the changes, the president would have to ask a leader
of the victorious party in general elections to form a government. The
government itself would be named by the president only after it was
approved by the Chamber of Deputies. The changes also set a maximum of
time allowed - 30 days - for trying to form a government.
The president would only be allowed to give amnesty after a verdict
has been issued. Other presidential powers would be limited - he or she
would have to name two-thirds of the members of the Czech National
Bank's Banking Council on Parliament's recommendation, the chairman and
vice chairman of the Supreme Court on the Senate's recommendation and
president and vice president of the Supreme Audit Office on the Chamber
of Deputies' recommendation. The Constitution today does not limit the
president at all in naming officials. The changes would also abolish
lifetime immunity for deputies and senators.
The deputies of opposition parties left the hall just before the
final vote. "We do not want to assist in this circus," said Christian
Democrat Chairman Jan Kasal. The changes were supported by 125 of 128
present deputies. Except for deputy Marie Machata (formerly of the
Freedom Union, now of the Czech National Social Party), two Social
Democrat deputies voted against the changes.
The changes must be passed by the Senate, where the ODS and Social
Democrats do not have the necessary majority. The Four-Party Coalition
(the Freedom Union, the Christian Democrats, the Democratic Union and
the Civic Democratic Alliance) and the Communists, as well as
independent Senator Vaclav Fischer, strongly disagree with the
constitutional changes. If the Senate does not pass the changes, no
changes will take place - the Chamber of Deputies cannot override the
Senate when voting on changes to the Constitution.
Ondrej Maly/Ondrej Maly
David Levy Meets Auschwitz Survivors
Israel Foreign Minister David Levy, who visited the Czech Republic
at the end of January, met Prime Minister Milos Zeman and Chamber of
Deputies Chairman Vaclav Klaus. Levy said he appreciated the
"sensibility" of the Czech Government concerning issues of
anti-Semitism, Holocaust victim indemnification and the return of Jewish
property. The controversial issue of a recently discovered medieval
Jewish cemetery (the Czech Insurance Company is going to build
underground garages at the site) was avoided by Levy with reference to
the fact that the problem is of a religious, and not political nature.
Levy also visited President Vaclav Havel, and both met later with
former Auschwitz prisoners on the 55th anniversary of the liberation of
the concentration camp. Both leaders appealed to preserve the memory of
the Holocaust tragedy.
Petra Kovacova/Milan Smid
November 17 Will Probably Become National Holiday
The Chamber of Deputies passed amendments to the National Holidays
Act in the first reading January 28. Beginning this year, November 17
(the day mostly student demonstrators were beaten by police in Prague in
1989, opening the way for the former Czechoslovakia to join the
surrounding states in dismantling communism) could be celebrated as
a national holiday.
The changes must be approved twice more by the Chamber of Deputies,
passed in the Senate and signed by the president. The idea of a national
holiday was criticized only by deputy Jiri Payne (Civic Democratic
Party, ODS), who said there is no reason to celebrate the day "when
people were thrashed on National Avenue (Narodni trida)."
Today there are four national holidays celebrated in the Czech
Republic: May 8 - V-E Day; July 5 - Anniversary of the arrival of the
Christian missionaries Cyril and Methodius in 863; July 6 - Anniversary
of the day in 1415 when church reformer John Huss (Jan Hus) was burned
at the stake; and October 28 - Anniversary of the founding of
Czechoslovakia in 1918. Other state holidays are May 1 - Labor Day;
December 24-26, January 1 and Easter Monday.
Gabriela Bobkova/Daniela Vrbova
Cars on Czech Roads Must Have New Highway Stamps
At the end of January 1999 highway stamps became invalid. The
Ministry of Finance introduced new highway stamps valid for one month or
10 days. Prices for full-year stamps remained the same for vehicles up
to 3.5 tons - 800 crowns. Stamps for vehicles of from 3.5 tons-12 tons
cost 6,000 crowns and cost 12,000 crowns for vehicles of more than 12
tons.
Gabriela Bobkova/Daniela Vrbova
New Rector of Charles University Takes Office
The three-year term of the 506th Charles University Rector Ivan
Wilhelm, 58, began February 1. President Vaclav Havel inaugurated him
into office January 25. Wilhelm had worked as pro-rector for the
development of the University.
The new rector said he is going to demand perfect knowledge of
foreign languages from students, he wants to expand seminars at the
expense of lectures, make entrance exams more objective and broaden
bachelor studies. He said he is also going to support scientific
research and motivate young scientists through foreign exchanges.
Gabriela Bobkova/Daniela Vrbova
NEWS IN BRIEF
* The Chamber of Deputies January 26 passed the agreement between the
Czech Republic and Slovakia to end property disputes surrounding the
division of the former Czechoslovakia. The agreement will be voted on
again after committees investigate it, while the Slovak National
Assembly passed the agreement February 1.
* After deadline: The Government decided February 12 to require visas
for citizens of Russia, Ukraine and Belarus entering the Czech Republic.
The measure will take effect in three months.
Michal Pospisil/Milan Smid
FOREIGN AFFAIRS
Klaus Warns against Third Way in Davos
In the Swiss mountain resort of Davos the 30th World Economic Forum
took place between January 27-February 2. The main themes of the forum
were international trade, globalization and the internet, limits to the
responsibility of international companies and drugs as a source of
financing for terrorists. The Czech Republic was represented by Prime
Minister Milos Zeman and Chamber of Deputies Chairman Vaclav Klaus.
Zeman briefly met American President Bill Clinton and Secretary of
State Madeleine Albright January 29. Zeman spoke with Albright about the
planned sale of air-conditioning technology for the Iranian nuclear
power plant in Bushehr to be manufactured by the Czech firm ZVVZ
Milevsko. The Czech Republic and the USA are trying to halt the deal,
fearing that the components of the power plant could be misused for the
production of nuclear weapons (see Carolina 359). Zeman also met with
Slovak President Rudolf Schuster. Zeman and Klaus had dinner with
Czech-born Canadian entrepreneur Tomas Bata and politicians from central
and eastern Europe.
Zeman said in his speech that countries with historical traditions
and a developed infrastructure will have an easier time getting accepted
to the EU, according to Czech daily Lidove noviny. Klaus warned in his
speech against the illusion of the third way, which he called
a justification of old ideas, a new attempt to save socialism,
social-democratism and the social state.
Gabriela Bobkova/Veronika Hankusova
Havel Helps Open Holocaust Forum in Stockholm
President Vaclav Havel gave one of the opening speeches at the
international forum on the Holocaust, which began January 26 in
Stockholm. Among those present were the leaders of 48 countries involved
in the Nazi persecution of Jewish and Romany minorities.
Havel appealed in his speech to preserve the warning memories of
the tragedy and said in every demonstration of intolerance against
Romanies and in every anti-Semitic remark the threat of transports to
gas chambers is encoded.
Michal Pospisil/Daniela Vrbova
FROM SLOVAKIA
Slovakia Plagued by High Unemployment Rate, Prices Rising
The unemployment rate in Slovakia has passed 20 per cent. The most
afflicted district, Rimavska Sobota, recorded 37 per cent of the
population as unemployed. However, Vice Premier Ivan Miklos claims the
real unemployment rate is only about 16 per cent because many people on
the dole are secretly working.
The Slovak Government is going to deal with the issue and wants to
set up a special commission to eliminate the black market in labor.
Miklos said the best remedy for high unemployment would be foreign
investment, which, unfortunately, did not increase last year despite the
changes in the Government.
From February 1 energy and transportation prices will jump by an
unprecedented amount. Consumers are going to pay 40 per cent more for
electricity, 30 per cent more for natural gas and 27 per cent more for
water. Railway travel prices will increase by 30 per cent, bus
transportation by 20 per cent. Postage will increase by 10 per cent.
The radical increases were criticized by some members of the
Government. The minister of labor and social affairs said the increases
will help neither the people nor the Slovak economy.
Petra Kovacova/Milan Smid
FROM SLOVAKIA IN BRIEF
* The Institute for Public Opinion Research's January poll shows that
the most trusted politician among Slovaks older than 18 is still
Chairman of the Movement for a Democratic Slovakia Vladimir Meciar. He
is trusted by 17 per cent of the population. Second place went to
Chairman of the party Direction (Smer) Robert Fico, followed by Premier
Mikulas Dzurinda and President Rudolf Schuster.
Petra Kovacova/Milan Smid
ECONOMY
State to Bail out Commerce Bank Again
The Government Committee for Bank Privatization has recommended the
Government help the Commerce Bank (Komercni banka, KB) in eliminating
classified loans exceeding 60 billion crowns.
The bank has 64.2 billion crowns in loans classified as
non-standard, dubious and losses, according to the February 1 edition of
the daily MF DNES. The bank has created reserves of 32.3 billion crowns
to cover the loans, meaning the state would have to pump into the bank
32 billion crowns through the state-controlled Consolidation Bank.
Finance Minister Pavel Mertlik said that is the maximum amount the state
would provide, although a lesser amount might suffice, because some of
the loans have collateral (usually property), which could bring some
income.
Lubos Kratochvil/Michael Bluhm
CKD Transportation Systems in Bankruptcy
The Regional Commercial Court in Prague January 28 placed CKD
Transportation Systems in bankruptcy. The fate of the company now lies
in the hands of the bankruptcy trustee and a possible strategic
investor.
As of January 28 the company employed some 1,100 people, 420 of
whom were let go as of February 1. The company owes about 90 million
crowns in wages, an average of three months' back pay per employee. The
company does not have the money to cover severance pay as required by
law. Production was halted in December. Bankruptcy trustee Peter Dostal
said the healthy divisions of the company will be offered for sale free
of the company's 8.5 billion crowns in debt. Siemens and Skoda have
expressed interest in CKD. CKD does have contracts to provide goods
worth 2 billion crowns, but the arrival of a strategic partner seems to
be the only way to avoid liquidation.
Lubos Kratochvil/Michael Bluhm
After deadline: The Government decided February 2 to sell the state's
52-per-cent share in the Czech Savings Bank (Ceska sporitelna) to
Austria's Erste Bank Sparkassen for about 19 billion crowns.
Rates at the Czech National Bank (valid February 4)
--------------------------------------------------------------
1 EUR = 35.880
country currency CZK
------------------------------------------
Australia 1 AUD 23.377
Great Britain 1 GBP 58.067
Denmark 1 DKK 4.820
Japan 100 JPY 34.063
Canada 1 CAD 25.552
IMF 1 XDR 49.542
Hungary 100 HUF 14.044
Norway 1 NOK 4.471
New Zealand 1 NZD 18.185
Poland 1 PLN 8.733
Greece 100 GRD 10.802
Slovakia 100 SKK 84.816
Slovenia 100 SIT 17.876
Sweden 1 SEK 4.229
Switzerland 1 CHF 22.264
USA 1 USD 36.872
Exchange Rates of countries participating in the euro
(converted from the euro rate)
country currency CZK
-----------------------------------------
Germany 1 DEM 18.345
Belgium 100 BEF 88.944
Finland 1 FIM 6.035
France 1 FRF 5.470
Ireland 1 IEP 45.558
Italy 1000 ITL 18.530
Luxemburg 100 LUF 88.944
Netherlands 1 NLG 16.282
Portugal 100 PTE 17.897
Austria 1 ATS 2.608
Spain 100 ESP 21.564
CULTURE
Febiofest Done in Prague, Return of The Idiot Wins Kristian
The Prague portion of the Febiofest film festival (see Carolina
360) ended January 26 with the premiere of the new Czech movie The
Conception of My Younger Brother (Poceti meho mladsiho bratra) from
director Vladimir Drha. Before the screening, the 1999 Kristian awards
in three categories - feature film, animation and documentary - were
presented to winners selected by Czech film journalists.
Return of The Idiot (Navrat idiota), the second film by director
Sasa Gedeon, won the prize in the feature category. The movie was also
chosen to be the Czech entry for the Academy Awards competition and was
recently bought for French distribution. The 1999 box-office hit Cozy
Nests (Pelisky) finished second, far behind the winner.
Results in the remaining categories were closer. The best animated
film was the absurd, black comedy The Fall (Pad) by Aurel Klimt, closely
followed by the satirical cartoon The Media by Pavel Koutsky and The
Raven (Havran) by Lucie Smirova. The Kristian for best documentary was
awarded to Petr Bok's and Martin Smid's Holocaust trilogy Among Blind
Lunatics (Mezi zaslepenymi blazny). Fero Fenic's daylong television
broadcast composed of archive footage from November 1999 finished
second.
The biggest draw at the Febiofest was Nikita Mikhalkov's The Barber
of Siberia. Among the movies which sold out Prague movie theaters during
Febifest were the American animated film South Park and the French
historical drama Joan of Arc, partly filmed in the Czech Republic.
Michal Pospisil/Milan Smid
SPORTS
Hockey Extraleague: Trinec Beats Leader Sparta Praha
Hockey Extraleague leader Sparta lost in Trinec but remained
safely in first place in the standings with a four-point advantage ahead
of Vsetin. Third-place Pilsen (Plzen) lost in Ceske Budejovice, with the
only goal in that game of the 41st round scored in the first minute by
Nedorost.
Results of the 40th round (played January 28): Vsetin - Slavia
Praha 6-1, Havirov - Vitkovice 0-3, Plzen - Karlovy Vary 4-4, Litvinov
- Trinec 4-2, Ceske Budejovice - Pardubice 4-2, Sparta Praha - Zlin
4-1, Znojmo - Kladno 5-2.
Results of the 41st round (played February 1): Trinec - Sparta
Praha 2-1, Vitkovice - Vsetin 4-4, Pardubice - Litvinov 7-1, Ceske
Budejovice - Plzen 1-0, Kladno - Karlovy Vary 2-2, Slavia Praha - Znojmo
3-2, Zlin - Havirov 5-2.
Standings: 1. Sparta Praha 58, 2. Vsetin 54, 3. Plzen 50, 4. Zlin
49, 5. Ceske Budejovice 48, 6. Trinec 45, 7. Litvinov 44, 8. Znojmo 37,
9. Slavia Praha 34, 10. Pardubice 33, 11. Havirov 32, 12. Karlovy Vary
31, 13. Vitkovice 28, 14. Kladno 27.
SPORTS IN BRIEF:
* Junior David Kasek won a bronze medal in the cyclocross World
Championships in St. Michielsgestel in the Netherlands. Four-time world
champion Radomir Simunek was the best Czech cyclist in the Elite
category race, he finished in 13th place. Jana Jerabkova finished 19th,
one place ahead of Pavla Havlikova, in the first ever women's race.
* Zdenek Vitek won the biathlon in the European Championships in
Zakopane in Poland. He won the 20km race January 26. The women's relay
(Losmanova, Simunkova, Cesnekova and Hakova) finished second behind
Slovakia January 27.
Miroslav Langer/Miroslav Langer
WEATHER
Strong winds brought us nearly spring-like weather with daily
temperatures of 5 degrees to 10 degrees Celsius/41 degrees to 50 degrees
Fahrenheit last week. Rain, showers and drizzle melted the rest of the
snow in Prague and in the highlands worried car drivers without good
winter tires. Even some birds in Prague were deceived by the change and
started to sing in the morning. However, spring is still far away. The
weather forecast says temperatures below the freezing point are going to
return, at least at night.
English version edited by Michael Bluhm.
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