BIZ WEEK
BUDGET • The Czech Republic will accept cutting the European Union budget between 2007 and 2013, as some member states have proposed, on the condition that expenditures such as structural funds will not be affected, Finance Minister Bohuslav Sobotka has said. EU structural funds are distributed as economic aid to new EU member states.
WAGE • The average gross monthly wage increased 1,116 Kc ($50.87) to 18,035 Kc in 2004, the slowest real wage growth in the last four years, according to data from the Czech Statistical Office released March 10. Foreign-owned companies are the most generous, paying employees an average 22,540 Kc a month.
ENERGY • Russia's consumer protection agency refused to extend production licenses for energy drinks produced by the Czech company Pinelli on concerns they pose a health risk. The drinks have been available in Russia for years, but health and safety regulators have moved to restrict the sale of drinks such as Erectus in public places and to people under 18.
BAKERY • Odkolek posted preliminary 2004 profits of approximately 4 million Kc. The bakery group was 30 million Kc in the red in 2003, said CEO Jan Jedlicka. Odkolek cut costs by shutting down some bakeries and laying off 360 employees and began exporting pastries with a long shelf life to Germany and Austria.
SHARE • Electricity giant CEZ paid 69.7 billion Kc to raise its stake in Skoda Praha from 69 percent to 97.6 percent. CEZ acquired the stake from minority shareholders and the government, which owned 24.3 percent of Skoda shares through the National Property Fund. CEZ gained a majority stake in the company last January.
LOGISTICS • Logistics company Exel has opened a new operations terminal in Modrice, south Moravia, attracted by the country's central location and high flow of foreign investment. The terminal will service domestic and foreign customers, said Roman Plachy, head of Exel Czech Republic.
LABOR • CzechInvest and economic analysts have predicted the country will lose its competitive edge for attracting labor-intensive investment in the next five years to Romania and other countries with cheaper labor costs. The Czech Republic will have to attract value-added investment to sustain the current growth rate, said Martin Jahn, deputy prime minister for the economy.
AUTO • Sales increased 10 percent to 7 billion Kc last year at Automotive Lighting, the largest domestic producer of car lights. The company has opened a new factory and hired 400 additional employees.
AGRICULTURE• Government subsides totaling more than 26 billion Kc helped boost the agricultural sector's profits 5 billion-6 billion Kc last year, said Agriculture Minister Jaroslav Palas.
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