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Czech Watch - 14 May 2002

14.5.2002 10:16

Czech Finance Minister Deputy Eduard Janota repeated in Brusel yesterday that it was not acceptable for the CR to consider its own deficit position in connection with EU’s budget after CR’s accession to the EU. He stressed if that would be the case, it might have a negative political impact and an unfavorable influence on public opinion. Janota considers a balance of budget as a minimum for ongoing talks.

Czech antitrust office (UOHS) informed yesterday that German RWE Gas agreed on the terms set by UOHS, by which the office conditioned the fusion of RWE and Transgas with eight local distributors. RWE Gas is to pay CZK 4.1bn to the National property fund for the stake in Transgas and the distributors.

Eddie George, Bank of England Chief, expressed his opinion at a meeting of Group of ten (G10) central bank governors yesterday. He sees bright evidence that economies of the USA and the euro zone have been recovering from the recession. In his opinion, the inflation develops in a favorable way as well. Growth of consumer prices should reach a level of 2% soon.

German inflation remains under 2% (a target zone of ECB). Consumer prices index rose 0.1% in April, respectively 1.6% on year-on-year basis. The key factors of April’s inflation were higher prices of transportation, which grew in line with hike in prices of fuel.

Retail sales increased by 1.2% m/m in April in Germany. The sales were 4.5% up in comparison with previous year.

Slovakian construction output decelerated its year-on-year fall to 0.8% in March from 5.5% in February.

Click here for the „Czech economic daily“ in .pdf format.

Radim Krejčí

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