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 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. ----------------------------------------------------------------------- This news may be published only with attribution to CAROLINA. Subscription is free. Comments and remarks are appreciated. 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