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New PM to put off state sell-offs
Prime Minister Mirek Topolánek of the Civic Democrats (ODS) stated on August 27 that his new government, expected to form soon, would not carry on with the privatization of state-owned companies. Topolánek instead told Czech Television that his government would prepare slated firms for sale, but would not close any deals until an early election is called next spring, at the earliest.
Companies slated for privatization include electricity producer CEZ, postal services company Ceská pošta, Czech Airlines (CSA), rail operator Ceské dráhy, oil storage company Cepro and aircraft manufactorer Aero Vodochody.
The ODS had originally planned to sell the shares of most big companies by 2010.
Analysts, however, say that the delay in privatizing state assets will not have an immediate negative impact on the economy but may hurt it in the long run.
"If privatization were delayed only for the time the interim government is in office, it wouldn't be the worst solution," said Pavel Kohout, an analyst with financial group PPF. "It would be worse if a government is formed for four years and fails to get a strong mandate."
The money raised as a result of privatization would go towards financing a long-overdue reform of the country's pension system.
Postponed privatization should not have any effect on the budget deficit or euro adoption, as revenues from planned sales of state assets are not included in the budget as government income, analysts say.
"This should not affect such issues as the adoption of the euro," said Martin Kupka, chief economist at CSOB bank.
Source: The Prague Post, 8/30/2006
New anti-terrorism center to open in fall
According to Interior Minister František Bublan, the Czech Republic could have its own anti-terrorism center as early as this fall.
Although security experts say the country isn't under any immediate terrorist threat, Bublan said it should be doing more to streamline cooperation between its police and intelligence services, and also needs to improve its collaboration with anti-terrorism security organizations abroad.
Bublan told journalists Aug. 22 that the main reason behind his decision to open an anti-terrorism center was his visit to Europol at The Hague last year.
"I discovered that information they get from the Czech Republic is very sporadic and from multiple sources," he said. "And that is not a good thing."
While more details of the center are expected to be released in the next few weeks, it is planned for the center to employ between 30 and 50 officers drawn from the ranks of the Organized Crime Unit (ÚOOZ) and the Financial Police (FIPO). The representatives of the Czech Security Information Service (BIS) and the Office for Foreign Relations and Information (ÚZSI) would work closely with them.
Jana Hybášková, a deputy in the European Parliament who prepared a security audit this summer assessing the country's preparedness in the case of a terrorist attack, says establishing an anti-terrorism center is a move in the right direction but will only work if it's part of broader, systemic changes.
"I had to conclude in the audit that this country isn't sufficiently prepared," Hybášková said. "There's a lack of political will to make the security system more efficient."
A number of politicians, however, have spoken out against Bublan's plan, and some are worried that the new center would give intelligence services too many powers.
"I have serious doubts about the usefulness of an anti-terrorism center here," said Ivan Langer, deputy chairman of the Civic Democrats (ODS), who would likely be the country's new interior minister in an ODS-led government. "What matters is the cooperation between the police and the intelligence services. I don't think we need a special center for that."
On the other hand, Džamila Sethlíková, deputy head of the Green Party, said that there's no reason why Czechs shouldn't have an anti-terrorism center. "If it's well planned out, why not?" she said. "Other states have such centers, so why not us?"
Indeed, some politicians have been calling for an anti-terrorism center for a long time, suggesting that Czechs are trying to ride on the coattails of other countries that are more prepared. Countries like France, Germany, Russia and the United States have had counter-terrorism divisions for years.
Social Democrat Miloš Titz, who was until the June election deputy chairman of Parliament's Defense and Security Committee, said he thinks Czechs underestimate the threat of terrorism here.
"We keep thinking that this country can't be a target, but that's simply not true," he said. "Anyone can be a target. "We can't stick our heads in the sand and hope that terrorists won't notice us."
Source: The Prague Post, 8/30/2006
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