Jan Svejnar, Professor at University of Michigan, came out with an original solution for the Czech crown issue. Unless the Czech republic succeeds in pressing the Czech crown down, it would be possible to start thinking about its (CZK) substitution by euro. As an example, he stated that CZK 35 could be substituted by 1 euro. However, Czech politicians and economists do not consider it is the right time for a system change at the moment.
European Commission forecasts 3.5% to 4.0% GDP rise in following years for the Czech republic. Remaining main source of the increase should be investments in form of foreign capital inflow. The Commission sees no change of situation in labor market despite the growth. The loss of jobs caused by restructuralization is to be compensated by creation of new opportunities. Key problem will be public finances but that is not a new story.
So called Trutnov appeal has been supported by more than 1 000 companies from various branches of the economy so far.
Polish inflation in March slipped to its record minimum of 3.3% from 3.5% in February. Monthly inflation of consumer prices was 0.2%.
Consumer confidence in Hungary increased in March to –5.4 points from –13.9 points in February. Business confidence improved to –4.3 points from previous –6.9 points.
Is FED going to raise its key rates? 10 from 22 largest Wall Street bond traders expect the first hike of the rates in June. The rates will likely rise by 25 basis points, the traders expect on average.
Iranian president Mohammad Khatami called for Islamic states to declare a one-month oil embargo against Israel's main allies in support of the Palestinians.
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