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Czech Watch - 15 March 2002

15.3.2002 10:00

Oposition senators healed financially uncurbed colleagues in the Senate. The Senate yesterday rejected the across-the-board payment of child benefits, returning an amendment to the law on state welfare to the Chamber of Deputies. In the first time, the law was approved by the Chamber of Deputies thanks to unconcern of deputies.

Minister of Agriculture Jan Fencl considers a contribution amounting billions of CZK to czech farmers to be able to purchase land. The contribution should have a form of low-interest loans. He suggested the possibility of financing by PGRLF’s securities.

According to the IMF, candidates to join EU need not rush to join single European currency. Susan Schadler, director of IMF’s European department, said that candidates should wait for real convergence first and join the eurozone not before 2008.

Michaela Erbenová, who is in charge of EU and international relations at the central bank (ČNB), agrees with that idea of IMF and comments that fiscal reform is needed prior to the entry.

Slovakians economy accelerates. GDP in fourth quarter rose by 3.9% following 3.5% increase in 3Q. The boom was pulled by investments and governmental spendings. On the contrary, spendings of households decreased as well as export. In the last year GDP rose by 3.3%. GDP was 3.1% higher in 2000.

Industrial output was in France 0.6% up compared to December 2001 (in December the industrial production fell by 1.1% m-o-m). Italian industrial companies increased their January’s production by 0.2% m-o-m, the production rose by 1.5% m-o-m in December.

The EU will discuss the steel import tariffs issue with the United states next week. Spokesperson of European Commision said that the consultation woul be the first step prior the WTO solution.

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

Radim Krejčí

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