• According to Czech National Bank board pro-inflationary risks are faster growth of wages and domestic economy, higher expected interest rates in eurozone and weaker koruna. On the other hand, there are no significant anti-inflationary risks, according to the board. • State debt in the 1H07 increased to CZK 856.1bn from CZK 728.9bn in the same period last year. Average maturity increased to 6.4 years. • Slovakia’s retail sales in May rose by 9.7% y/y while market expected 6.5%. • Chicago stock exchanges CME and CBOT are merging into CME Group. Leaders on financial derivates trading strengthened even more their position. • After comments aimed against ECB independence, French president Sarkozy indicated that his reforms are going to need certain flexibility of Stability Pact which means that lowering budget deficits is going to be slower. • Industrial production in German in May increased by 1.9% y/y against expected 1.8%.