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