Labour unions are going to demand 10% wage hike next year despite ČNB governor advising a lower rate of increase. Zdeněk Tůma, ČNB governor, proposed a 7-8% wage increase as suitable for maintaining macroeconomic stability. This level will imply an increase of real wages by 2.5-3.5%. According to expected productivity gains and the development of external imbalance we suggest the ČNB claim to be more suitable for the current state of the Czech economy. However, there is no need so that wages should increase equally in firms with different performance.
The Telecoms Office is going to recommend to the government how to distribute UMTS licences by the end of January. It is expected that three licences will be sold to current GSM network operators for a fixed fee and one should be sold at auction.
The government agreed yesterday to ask the Constitutional Court to judge a validity of the ČNB Governor appointment without the countersignature of the Premier.
The Czech koruna finished Monday’s trading flat against the euro as the approaching end of the year dampened activity on the market. The koruna closet at 34.70 to the euro. The currency dipped to 38.85 to the dollar from Friday’s 38.65.
Bonds were little changed in quiet trading. The longest state bond 6.40/10 gained 5 bps to 93.00 with yield at 7.30.