After a two-week break, the Czech Watch returns to service. Nothing much has changed meanwhile, though. The Cabinet is grasping with the state budget for 2000 as the social expenditures keep rising and the political will dictates a smaller deficit than in 2000. The MoF indicated, for the first time, that it may have problems fulfilling this year target of a deficit of CZK 36 bil. Next year deficit should be CZK 20 bil. only and expenditures on almost everything should grow…
It seems possible that the government mulls awarding a licence to a private investor to build much touted highway to Ostrava. The highway, then, would become the first toll-road in the Czech Republic. This would be radical stuff, especially for a socialist government.
The Ministry of Transport puts a brave face and says that the Cesky Telecom privatization without the KPN taking part may bring even higher price. No reasoning for this magical twist was given, though.
The Czech koruna traded at around 35.30 CZK/EUR and 39.30 CZK/USD with rather low quantity and little movements. Today's results of the balance of bayments and mainly Friday's inflation numbers may give a new impetus to the koruna.