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Carolina (English) No 413
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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 ISSN 121-5040
tel: (+4202) 22112252, fax: (+4202) 22112219
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
C A R O L I N A No 413, Friday, April 6, 2001.
FROM THE EVENTS OF THE PAST WEEK (March 28 - April 4)
Zeman's Cabinet Approves Pension Reform Plan, Parliament Skeptical
The government April 4 approved Labor Minister Vladimir Spidla's
proposals for pension-system reform. The system would still rely on the
dominant role of social security insurance, while greater emphasis would
be placed on voluntary insurance, which could account for up to
one-quarter of pension payouts.
The existing system of private pension funds will be complemented
by employee funds, into which employers motivated by tax breaks would
also contribute. An important part of the reform is also the so-called
Swedish model, allowing for a flexible retirement age, where the only
limit is the minimum number of years of employment. Spidla said anyone
who retires before reaching the minimum will receive a smaller pension,
while those who work longer will receive more.
The final decision rests with Parliament, which in the past
rejected another Spidla initiative: the separation of the pension system
from the state budget and the establishment of an independent social
insurance agency. All political parties and the World Bank (see Carolina
412) have agreed on the need for an overhaul of the pension system,
which ended last year with a 20-billion-crown deficit, which will in all
likelihood increase this year. One of the main problems is the troubling
Czech demographic development: a low birth rate, an aging population and
a large number of postwar children heading toward retirement.
Opinions concerning the plan differ, with most negative reactions
coming from parties to the right of the Social Democrats. Libuse
Benesova of the Civic Democratic Party said to the daily MF DNES she
disapproves of employee funds and that their function can be taken care
of by existing pension funds. The Four-Party Coalition also criticized
the plan - "I don't see any specific steps there how to deal with the
rising deficit of the pension system," said Freedom Union deputy Vaclav
Krasa.
Katerina Komadova/Sofia Karakeva
New Four-Party Coalition Leader Karel Kuhnl Introduces Shadow Cabinet
The Four-Party Coalition (Freedom Union, Christian Democrats, Civic
Democratic Alliance and Democratic Union) surprisingly elected on the
night of March 30 Freedom Union Chairman Karel Kuhnl its new leader.
Kuhnl succeeds Christian Democrat Cyril Svoboda. Svoboda was supposed to
put together his shadow government at the meeting, but he resigned
because of objections to proposed ministers. The coalition's Political
Council then chose Kuhnl, who presented his shadow cabinet at the end of
the meeting.
One of the main reasons for Svoboda's resignation was fellow
Christian Democrat Miroslav Kalousek, nominated as shadow trade
minister; Kalousek, during his two years as deputy defense minister, was
often connected with ministry tenders smelling of corruption.
Kuhnl's cabinet has 16 members, some of them already familiar from
stints in previous governments, like Ivan Pilip (finance), Josef
Zieleniec (foreign affairs) and Miloslav Vyborny (justice). The
cabinet's only woman, Zuzana Roithova, also has experience leading
a ministry (health).
Ales Borovan/Sofia Karakeva
Hockey Club Owner Behind Bars
Owner of the hockey powerhouse HC Slovnaft Vsetin - scheduled to
play the first game of the extraleague finals against Sparta Praha April
7 (see below) - Roman Zubik was arrested April 2 and accused of a number
of loan frauds.
The accusation concerns promissory notes issued in 1998 by Jan
Ducky, former general director of the Slovak Gas Industry (SPP) and
a member of several of former Slovak Premier Vladimir Meciar's
governments, to Zubik's firm Sezooz Group. Thanks to these notes, he
obtained loans exceeding 320 million crowns from Union Bank and 140
million crowns from the bankrupt Moravia Bank. He used the notes as
security for the loans, but he used the money for purposes other than
those in the loan agreements. If convicted, he faces a sentence of five
to 12 years.
Zubik was supposed to use the money for to fill orders for the SPP,
but he purchased shares of the Chemapol Group instead. Last year in
court Zubik admitted his supplier contracts with the Slovak company were
fake.
Ducky also signed notes for 2 to 3 billion crowns for other
companies at the end of 1998. He was murdered two years ago. Slovak
Justice Minister Jan Carnogursky has said there might be a connection
between the murder and the notes, including the ones for Zubik.
Zubik is drowning in other debts; his companies owe at least 750
million crowns to the Consolidation Bank, according to the daily MF
DNES.
Stepan Vorlicek/Stepan Vorlicek
FOREIGN AFFAIRS
Russian Debt - Mission Impossible
Deputy Prime Minister and Finance Minister Pavel Mertlik and
Russian Finance Minister Alexej Kudrin April 2 discussed in Moscow the
payment of the Russian debt to the Czech Republic. The talks did not
bring any concrete results; Mertlik said a final agreement is far off.
There are several alternative methods to pursue the debt, which is now
about 3.7 billion USD.
The most probable method, according to the daily MF DNES, is that
the company Falkon Capital would buy the debt for about 22 per cent of
its total value. This company, founded in the Czech Republic by citizens
of the former Soviet Union, is said to be connected to foreign secret
services and organized crime. Mertlik said this information is "a very
long way from reality;" the company has not yet been sold the debt, but
has been agreed on by Mertlik and Foreign Minister Jan Kavan. The final
solution must be approved by the government; Prime Minister Milos Zeman
said his goal is to reach a solution acceptable to both sides and would
not accept a company that would be a security risk for the Czech
Republic.
Mertlik talked in Moscow about other ways of settling the debt,
foremost about goods, from electricity to fighter planes, as well as
using state bonds or trading the debt for Russian claims against other
countries.
Stepan Vorlicek/Stepan Vorlicek
Jewish Moravia, Jewish Brno in Brussels
An exhibit called Jewish Moravia, Jewish Brno was launched in the
Czech Center in Brussels March 29, featuring the Prague High Rabbi Karol
Sidon. The exhibit is a portion of an exposition which took place in the
House of Art in Brno not long ago. The Brussels show presents items from
Moravian museums, the Jewish Community in Brno and from private
collections. The event is accompanied by lectures, films, discussion
forums and seminars. The exhibit will travel to other cities like Tel
Aviv and Jerusalem. Talks with New York, Warsaw and Paris are underway
(more information at www.k2001.cz).
Katerina Komadova/Stepan Vorlicek
FROM SLOVAKIA
Administrative Regions Divide Slovak Coalition
The Slovak government agreed April 1 on a plan to reform the state
administration after weeks of arguments and a four-hour meeting. The
cause of the coalition quarrel was the administrative division of the
country into regions.
Two models were available - one with eight regions and the second
with 12 regions. In addition, the Hungarian Coalition Party (Strana
madarske koalice - SMK) demanded to form a Komarno (Komarom) region,
which would have a majority of ethnic Hungarians.
Two weeks ago the Cabinet wanted to discuss both proposals, but
after discovering neither proposal would get a majority backing in the
legislature, the Cabinet decided to submit one - the 12-region-model
supported by Premier Mikulas Dzurinda's Slovak Democratic and Christian
Union (SDKU) and the Christian Democratic Movement (KDH). This model was
opposed by the Party of the Democratic Left (SDL') and the Party of
Civic Understanding (SOP). Nevertheless the Hungarians (SMK) decided
finally to support the 12-region division and withdrew its demand for
the special Komarno (Komarom) region.
The SDL' and SOP parties have not given up and are to submit
a proposal for eight regions in the Slovak National Assembly. They are
counting on the support of the opposition parties Movement for
a Democratic Slovakia (HZDS) and the far-right Slovak National Party
(SNS). However, the SNS has its own proposal for three regions and
a Bratislava district.
Dzurinda said he would tie a vote on the eight-region proposal to
a vote of confidence in the government.
Zdenek Sloboda/Milan Smid
ECONOMY
Fitch IBCA Lowers Czech Republic's Rating
The British rating agency Fitch IBCA March 28 lowered the Czech
Republic's debt rating in crowns from an A+ to an A. The agency said it
lowered the rating because of the significant worsening of the
country's budget and the rise of state indebtedness.
The rating signifies the agency's opinion of the country's ability
to pay its debts; as a result of the lower rating, the country might to
have to provide higher interest on its state debt offerings.
Fitch is one of the world's three top rating agencies; the other
two, Moody's and Standard and Poor's, said they are not considering
lowering their ratings of the Czech Republic.
Michael Bluhm/Michael Bluhm
Czechs Protest against Being Labelled BSE Danger Country
Czech veterinarians are incensed at the EU's latest report, which
includes the Czech Republic among countries with a high probability of
having BSE (Mad Cow Disease), despite the fact that there has not been
a case of the disease recorded here. "This decision of the EU had
already been prepared. It is decision of politicians, not experts," said
Josef Duben, the State Veterinary Administration speaker, April 3. The
EU's Permanent Veterinary Committee said the Czech Republic had imported
a lot of cattle and bonemeal feed from European coutries in which BSE
occured. Duben said that is not true and that giving animals bonemeal
feed has been banned here since 1991.
Experts suggest that the decision might have a negative impact on
cooperation with some trade partners. Czech Agriculture Minister Jan
Fencl sent a letter of protest to Brussels April 2. The protest is not
likely to change the EU's decision.
Katka Komadova/Adam Fendrych
Rates at the Czech National Bank (valid April 6)
--------------------------------------------------------------
1 EUR = 34.615
country currency CZK
------------------------------------------
Australia 1 AUD 18 867
Great Britain 1 GBP 55.148
Denmark 1 DKK 4.637
Japan 100 JPY 31.073
Canada 1 CAD 24.422
IMF 1 XDR 48.776
Hungary 100 HUF 12.973
Norway 1 NOK 4.241
New Zealand 1 NZD 15.537
Poland 1 PLN 9.543
Slovakia 100 SKK 79.384
Slovenia 100 SIT 16.020
Sweden 1 SEK 3.768
Switzerland 1 CHF 22.634
USA 1 USD 38.476
Exchange Rates of countries participating in the euro
(converted from the euro rate)
country currency CZK
-----------------------------------------
Germany 1 DEM 17.698
Belgium 100 BEF 85.808
Finland 1 FIM 5.822
France 1 FRF 5.277
Ireland 1 IEP 43.952
Italy 1000 ITL 17.877
Luxemburg 100 LUF 85.808
Netherlands 1 NLG 15.708
Portugal 100 PTE 17.266
Austria 1 ATS 2.516
Greece 100 GRD 10.158
Spain 100 ESP 20.804
CULTURE
Rushdie, Vidal and Prague Writers' Festival Draw Crowds
The 11th year of the Prague Writers' Festival was opened by Prague
Mayor Jan Kasl April 1 in his official residence. The program was opened
by a concert of Swiss musicians and a reading by American author Gore
Vidal. The visit by Vidal, a longtime, vocal critic of the US, was
criticized by Chamber of Deputies Chairman Vaclav Klaus.
The biggest names of the festival (Salman Rushdie, Vidal, Czech
writer Arnost Lustig and festival Director Michael March) met April 2 in
Prague's Ypsilon Studio to debate the Fall of Humanism, the main theme
of the festival. The biggest attraction of the festival has been the
Bombay-born Brit Rushdie, the 1989 object of a death sentence issued by
the Iranian clergy. In Prague Rushdie was under tight police
surveillance and his schedule was secret, because there is still
a bounty on his head of 2.8 million USD. Rushdie met President Vaclav
Havel and at his reading April 3 talked about rock'n'roll, literature,
India and America in an overflowing Studio Ypsilon. Rushdie said the
police protection in Prague was a throwback to his lifestyle when the
fatwa, or death sentence, was handed down.
The festival is dedicated this year to Italian humanist Primo Levi.
The festival also features days devoted to authors from Israel,
Switzerland and Ireland. The festival ends April 6.
Katerina Kunovska, Martin Roubal/Veronika Hankusova
Burmese Student Leader Min Ko Nain Honored at One World Festival
The One World Festival, which began in Prague April 2, presents
almost 90 documentary films concerning human rights. The movies are
competing for several awards. Besides the Best Film and Best Director
awards, there is the Special Prize for Extraordinary Support of the
Protection of Human Rights, which will be presented by President Vaclav
Havel, the honorary jury chairman. Other awards include the Prague
Mayor's Award, the Rudolf Vrba Award and the Audience Award.
Along with movies, the festival also honors human rights activists.
Min Ko Nain, the imprisoned Burma (Myanmar) student-movement leader, was
given the Homo Homini Award for his significant contribution to the
protection of human rights and advocation of democracy.
The third year of the One World Festival is accompanied by concerts,
a photography exhibit and a discussion with filmmakers. On April 10 the
festival leaves Prague for 13 other cities in the Czech Republic and
abroad.
Vera Vonavkova/Adam Fendrych
SPORTS
World Cup Qualifier against Denmark Scoreless
The Czech national soccer team tied Denmark 0-0 in a 2002 World Cup
qualification game in Prague March 28. The Czech team leads its group
standings with 11 points, one point ahead of Bulgaria; Denmark has nine
points, followed by the Northern Ireland, Iceland and Malta.
The spectators enjoyed the game's offense, which featured many
scoring chances. Vladimir Smicer had three chances, on the other side
Czech goalie Pavel Srnicek had had to face Jon Dahl Tomasson alone
twice. Karel Poborsky missed an empty net after a pass from Jan Koller
in the biggest chance of the game.
Danish players took advantage of the Czech defense with their
speed. Coach Jozef Chovanec criticized the defenders for giving the
Danish forwards too many chance, while the Czech forwards and midfield
players were not able to take advantage of the empty wing areas.
Hockey Extraleague Offers Rematch of Last Season's Final
Reigning champion Sparta Praha will meet regular-season champ
Slovnaft Vsetin in the hockey extraleague finals. Vsetin has the chance
to avenge last year's finals loss, which ended Vsetin's five-year
championship monopoly. The first game of the final is April 7.
Sparta was the first team to qualify for the finals as it defeated
Vitkovice in three straight games. It won both home games (3-2 and 3-1)
and ended the series in Ostrava with a 3-2 win. Vitkovice led twice in
the decisive game after David Moravec's goals, but Sparta was able to
hold on thanks to Pavel Kasparik and Michal Bros. Ondrej Kratena scored
the winning goal in the third period.
Vsetin, which met Slavia Praha in the semifinals, also took full
advantage of its home ice and after a 3-2 win the series moved to Prague
with Vsetin ahead 2-0. In Prague, Vsetin lost 2-4, but then it used its
experience to turn the fourth game around from a 2-5 deficit to a 6-5
victory. Viktor Ujcik helped Slavia to keep its hopes alive for four
games, but Jan Pardavy, Vsetin's Slovak forward, was the key player in
the series - he scored in all four games, including a hat trick in the
last game.
Vsetin seems to be the favorite for the title. "Sparta has had good
luck till now: it qualified for the playoffs in the last minute,
Litvinov's style suited it and it opened the series against Vitkovice,
tired after the quarterfinal against Pardubice, with two games at home,"
said Vsetin captain Jiri Dopita.
Teams from Soccer League Elite Disappointed
The Czech teams struggling to qualify for the European cups
disappointed in the games of the 22nd and postponed 18th round.
Second-place Sigma Olomouc lost to second-to-last Ceske Budejovice (in
the debut of Budejovice's new coach Milan Boksa) and then - in an
excellent matchup from the postponed 18th round against fellow cups
candidate Pribram - they gave a shameful performance full of inaccurate
passes and balls kicked away.
First-place Sparta Praha tied in Drnovice after a performance that
was not worthy of a team with European experience and ambitions. Also
Teplice and Liberec played far below their abilities.
Slavia was thus the only team to fulfill its ambitions, but it
still has to overcome its poor beginning of the season. After a win over
Teplice and Bohemians Praha (on a 90th-minute Skala goal), it is five
points out of second place - qualification criteria for next season's
Champions League.
Results of the 22nd round: Slavia Praha - Teplice 3-0, Ceske
Budejovice - Olomouc 3-1, Jablonec - Pribram 2-1, Blsany - Bohemians
Praha 0-0, Zizkov - Brno 1-1, Stare Mesto - Ostrava 2-1, Plzen - Liberec
1-0.
Results of the postponed 18th round: Pribram - Olomouc 0-0, Slavia
Praha - Bohemians Praha 1-0.
Standings: 1. Sparta Praha 20 games/50 points, 2. Olomouc 22/38,
3. Pribram 22/36, 4. Teplice 21/33, 5. Slavia Praha 22/33, 6. Liberec
21/31, 7. Zizkov 21/31, 8. Stare Mesto 21/29, 9. Bohemians Praha 22/27,
10. Drnovice 20/26, 11. Jablonec 21/25, 12. Ostrava 21/23, 13. Blsany
21/22, 14. Brno 21/20, 15. Ceske Budejovice 21/18, 16. Plzen 21/15.
SPORTS IN BRIEF
* Tennis players Jiri Novak and David Rikl won a doubles tournament
in Miami. Thanks to their 12th title, they moved into third place in the
doubles world rankings.
Sports section by Adam Fendrych/Mirek Langer
WEATHER
The last week has been beautiful, sunny and warm. Sadly,
meteorologists are predicting the coming week will take the sun from us
and shower us with rain.
Dana Zlatohlavkova, Petr Frinta/Veronika Hankusova
English version edited by Michael Bluhm
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