Politics starts in earnest this Monday… First, the governing Social Democrats discussed their long-term program and issued a heap of interesting signals. They dismiss a pension reform based on private savings, they want the labor market not to interfere with family life, they want a global financial regulation and they would like the media to concentrate on "important issues" not on "trivia." Suggestions for new regulation authorities should be sent to the government.
The Ministry of Finance plans to propose a new environmental tax ("carbon tax"?) that would be levied on electricity, gas and solid fuels alike and would be used to finance (government) environmental projects. The Minister himself showed a kinder face to the public when he said that the gas rates would go up mainly for large users and families should be protected. The principle of marginal costs seems to elude the Minister.
A chronically unreliable local newspaper says that the CNB governor Mr. Tosovsky had already decided to resign.
The koruna was very inactive on Friday and remained at 35.55 CZK/EUR. Asd the euro gained a bit vis-a-vis the dollar, the koruna appreciated slightly to 40.25 CZK/USD form 40.35 CZK/USD in the morning.
The bond market was closed down on Friday.