CCCCC AA RRRRR OOOO LL II NN N AA CC AA A RR R OO O LL II NNN N AA A CC AA A RRRRR OO O LL II NN N N AA A CC AAAAAA RR R OO O LL II NN NN AAAAAA CCCCC AA A RR R OOOO LLLLLL II NN N AA A 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 ----------------------------------------------------------------------- This news may be published only with "CAROLINA" designation. The subscription is free. Comments and remarks are appreciated. 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