Monday, 28 November 2016 ‘Mad interest Issue 141 l newsstand price CZK 24/¤ 1 l www.e15.cz 141 rates = WW III’ 0

Planet has accumulated such debts 40 that no economic model exists to deal with them, warns Czech senator FACE TO FACE pages 10–11 771803 45431 9 Wisecracks of old Book explores coded humour amid post-1968 communist society facebook.com/ FEATURE pages 12–13 e15weekly Bureaucracy triumphs Set aside 23 billion crowns of EU funds, add billions in state capital, and direct it at an interior ministry Smart Administration project to tackle red tape. What do you get? An utter shambles, judging by an assessment

Jan Pavec

even years of work and billi- ons of crowns were thrown at excess bureaucracy entangled within the state administration, Sbut it was not enough to make any real headway. That’s one conclusion drawn from an evaluation of the government’s Smart Administration strategy, pub- lished by the interior ministry. What’s more, although it was the government that two years ago requested the com- piling of the assessment, E15’s infor- mation is that the document, released in August, has not made it through to government office. The battle – or lack of a battle – against bureaucracy has been looked into by the Supreme Audit Office [NKÚ], which as early as last year filed a criminal complaint. “In our opinion this strategy has simply failed, it was systematically set up badly,” said Olga Málková, spokesperson for the NKÚ. The NKÚ’s verification officials dis- covered evidence of alleged violations in legal duties in the management of third-party assets, in adhering to the rules of sound economic competition and in protecting the European Union’s financial interests from damage.

Continues on page 2

EW16112801A1.indd 1 25.11.2016 12:32:43 2/3 news ‘Mr. Praguer’s’ Prague PM bets farm on existing Financier Karel Pražák is investing more and more in real estate minister of agriculture REAL ESTATE a Socialist-era building which metre development already Daniel Novák later ended up as an abandoned exists. Winterstein anticipa- Dušan Kütner casino. ted that the investment would aprain Holding and its “We sold this piece of real amount to around EUR 40m. Greater efforts at protecting owner, the financier estate in a standard selection Further constructions are the Land Resources Fund, KKarel Pražák [the sur- procedure. There were many planned. increased support for crucial name translates as “Praguer”], interested bidders,” said Ta- “The original plan not only commodities, vigilance over the are a growing presence on mir Winterstein, owner of the counted with office-admini- quality of domestic foodstuffs the Prague property market. Lighthouse Group, which sold strative buildings and a ho- and preparations for the battle Pražák, a former colleague of Pražák the lucrative car park tel, but also with residential with climate change required, wealthiest Czech and investor by the O2 Arena at a price that buildings. We intend to stick in part, to ward off the threat Petr Kellner, has over a short has not been disclosed. Winter- with this plan in line with the of worsening drought impacts. time completed some major stein retained a minority stake standing permit volume. We’re Prime Minister Bohuslav So- real estate acquisitions. Most in the property. currently discussing the spe- botka offered these points as recently he acquired a large car Investment specialists cific shaping of the buildings just some of the highlights of park property situated right appraised Pražák’s acquisiti- with architects,” Pražák told Marian Jurečka’s three years as alongside Kellner’s O2 Arena on activities as well directed. E15 daily. agriculture minister for which in Prague 9’s Vysočany quar- “In the wider centre of Prague The Vysočany development he said there should be appre- ter. Housing worth billions of free land plots are insufficient- will liquidate a substantial ciation. crowns is to be constructed on ly available goods. Looking amount of parking places “The [agriculture] ministry the site. ahead these are very appealing used by visitors to the arena. has succeeded in fulfilling the Pražák has also been busy and strategic parcels of land “The O2 Arena makes use of major part of those things rela- making an acquisition at the in the vicinity of the metro,” its own extensive parking buil- ted to agriculture which are in top of Prague’s high-end sho- said Jan Hospodář, a partner in ding which will not be chan- Photo: Michael Tomeš the government programme,” pping boulevard, Pařížská, consulting firm 108 Investment ged at all by that project,” said New investment chapter. The former headquarters of the said Social Democrat Sobotka. across from the river Vltava. Advisory. Radek Stavěl, spokesman for Prague-based Socialist-era International Association of Students During the final year of the At one end of the avenue, oppo- The first move of Pražák Bestsport, through which Kell- stands on one of the most lucrative plots of land in the capital ruling coalition’s term of office, site the Hotel InterContinen- at his Vysočany site will be to ner’s PPF investment group the agriculture ministry is to tal and the Charles University build an office part for his pro- operates the entertainment of Pařížská. Having failed as ted to turn it into the Prague focus on completing its green Law Faculty, he snapped up the ject. It will adjoin Českomo- venue. a casino, the building later branch of London’s world- diesel support initiative for far- former HQ of the International ravská street. A construction No less intriguing is Pra- became the focus of an ambi- -famous luxury department mers, pushing through amen- Association of Students [MSS], permit for a 25,000-square žák’s acquisition at the end tious Italian owner who wan- store Harrods. ded laws covering winemakers and hunters and gamekeepers Bureaucracy triumphs

Continued from page 2 the aims of launching appli- cations to support the legis- The claimed breaches were lative process and the public attributed to negligence. E15 database of Czech laws have also understands that even pri- foundered. Some success is or to the NKÚ involvement, found, however, when it comes police began probing the to the introduction of digital Smart Administration stra- administration (or “e-gover- tegy. The police declined to nment”), including databox comment on whether they had services, the Czech POINT got anywhere with the case. contact points and basic re- The interior ministry, mea- gisters. nwhile, is not yet able to clarify “It has been for many years how much of the CZK 23bn of the last substantial project in European funds, as well as the the field of the computerisa- billions of crowns of state bud- tion of public administration get capital, has been spent. Lo- which public institutions are oking at the strategy from all still faced with through to

angles, the ministry’s evalua- today,” said former interior Photo: ČTK tion damns it as a pure failure. minister Ivan Langer, who

ČTK Visualization: The main goals of improving launched Smart Administra- When Slavia score, listen for the roar in Shanghai quality of life for citizens and tion in 2007. “After the exit Next year brings the 125th anniversary of the Czech Republic’s second most successful football Wenceslas Square revamp edges that much nearer supporting Czech economic of our team, most of our su- club, Slavia Prague. Few of the founders of the club – Slavia was founded by students of medicine Years of painfully slow progress towards the transformation of the lower part of Prague’s Wenceslas growth by pushing up public ccessors devoted more energy in 1892, initially as a sports club focused on cycling – could have imagined that one day the “red Square have finally brought another milestone. Prague 1 zoning permission has been granted. administration efficiency have to demolishing things than to and whites” would be almost entirely owned by the Chinese. But with China’s CEFC having now However, a construction permit will be needed before the first shovel hits the earth. The start of not been met. creating things. The peak of bought honorary club president Jiří Šimáně’s 20-percent stake, held by through his Fly Sport the reconstruction has now been pencilled in for 2018. The square will be revived with new trees, Attempts at simplifying the inaction occurred during Investments, that is indeed the case. Shanghai-based CEFC now owns 99.964% of Sparta Prague’s benches and fountains between Můstek and the Vodičková thoroughfare. Around 200 million bureaucratic steps have not the past three years, when ab- great rival, with the rest in the hands of fans. The deal included the paying off of all loans which crowns will be sunk into the revamp even delivered the removal of solutely nothing was done,” Fly Sport Investments provided to Slavia superfluous regulations. While he added.

EW16112802A1.indd 2 25.11.2016 12:41:06 news

‘Mr. Praguer’s’ Prague PM bets farm on existing Pavel Otto’s notebook Financier Karel Pražák is investing more and more in real estate minister of agriculture Dušan Kütner No party Greater efforts at protecting the Land Resources Fund, increased support for crucial poopers please commodities, vigilance over the quality of domestic foodstuffs Vlasta Parkanová, the their original charges were and preparations for the battle post-split Czech Repub- “filled with suppositions”. So with climate change required, lic’s first female minister no parties for anti-corruption in part, to ward off the threat (Justice and later Defence), activists. of worsening drought impacts. has celebrated her 65th Prime Minister Bohuslav So- birthday. Whether police and The above may be one rea- botka offered these points as state prosecutors stopped to son why a recent regular me- wish her a happy birthday, eting between PM Bohuslav just some of the highlights of Photo: Michael Tomeš Marian Jurečka’s three years as however, is another matter. Sobotka and justice minister agriculture minister for which and assisting cattle breeders. st imports deemed too cheap. Especially those who have Robert Pelikán completely he said there should be appre- “Our ambitions through to the “We know this is about a long- been investigating for seven ignored proposed legislation ciation. end of the term of office also -distance run, but from our years the alleged over-priced to improve the efficacy of “The [agriculture] ministry extend to managing to create perspective, we are not getting purchases of CASA military the prosecution service. An has succeeded in fulfilling the a fund for uninsured risks,” much nearer to the finishing transport aircraft during her amendment backed by chief major part of those things rela- added Jurečka, a Christian line,” said Agrarian Chamber reign. Back in 2012, Parkano- prosecutors as far back as ted to agriculture which are in Democrat. spokesperson Dana Večeřová. vá was charged by police for the PM Petr Nečas era thus Photo: Michael Tomeš the government programme,” The Agrarian Chamber was Sobotka met with Jurečka corrupt conduct in the affair. remains stuck in Parliament New investment chapter. The former headquarters of the said Social Democrat Sobotka. not, however, impressed. For during one of his meetings The TOP 09 MP has since left and will likely go up in smoke. Prague-based Socialist-era International Association of Students During the final year of the instance, it is expecting the ag- designed to take stock of the politics, but the wheels of jus- A plan to make anti-corrupti- stands on one of the most lucrative plots of land in the capital ruling coalition’s term of office, riculture minister to deal with progress of his administration. tice continue to turn – a Pra- on units immune to oversight the agriculture ministry is to retail chains’ abuse of their The PM has weighed up the per- gue court just returned the is increasingly viewed as ted to turn it into the Prague focus on completing its green dominant position in their de- formance of each ministry and case to investigators saying somewhat ridiculous. branch of London’s world- diesel support initiative for far- alings with producers. It is also each minister. He lately repla- -famous luxury department mers, pushing through amen- awaiting more significant and ced his Social Democrat human store Harrods. ded laws covering winemakers conceptual support for Czech rights and health ministers in Jan Stuchlík’s notebook and hunters and gamekeepers foodstuffs and protection again- a cabinet reshuffle. Bureaucracy triumphs the aims of launching appli- It’s an ill wind cations to support the legis- lative process and the public There’s nothing like a me- plant, faces an upward final database of Czech laws have ga-project to raise tem- price revision of 50 percent foundered. Some success is peratures. Opponents of compared with four years found, however, when it comes nuclear reactor construction ago. So, is there really much to the introduction of digital are once again doing battle. difference between wind administration (or “e-gover- Their arguments are clear: and nuclear? nment”), including databox reactors are excessively services, the Czech POINT expensive, and construc- The Czech Republic trumps contact points and basic re- tion delays and overruns the US by a number of gisters. are common. Slovakia, years. US President-Elect “It has been for many years Finland and France show Donald Trump is resisting the last substantial project in they have a point. But even calls to formally distance the field of the computerisa- if that was the only valid himself from his many busi- tion of public administration argument against nuclear ness interests. And the con- which public institutions are energy, another obstacle flict of interest laws cannot still faced with through to would nonetheless stand in compel him to. Democrats in today,” said former interior Photo: ČTK the way, namely Germany’s the US Senate, meanwhile, minister Ivan Langer, who renewable energy concept. are pushing a special resolu- launched Smart Administra- When Slavia score, listen for the roar in Shanghai Huge wind turbines to this tion to force Trump to place tion in 2007. “After the exit Next year brings the 125th anniversary of the Czech Republic’s second most successful football country’s north are now to his affairs in a blind trust. of our team, most of our su- club, Slavia Prague. Few of the founders of the club – Slavia was founded by students of medicine be joined by similar structu- It’s funny, as we Czechs, with ccessors devoted more energy in 1892, initially as a sports club focused on cycling – could have imagined that one day the “red res to the south. But it our own oligarch politician, to demolishing things than to and whites” would be almost entirely owned by the Chinese. But with China’s CEFC having now seems they will be delayed have already waded through creating things. The peak of bought honorary club president Jiří Šimáně’s 20-percent stake, held by through his Fly Sport by several years. Ground that one. We even passed the inaction occurred during Investments, that is indeed the case. Shanghai-based CEFC now owns 99.964% of Sparta Prague’s has barely been broken yet legislation. Should we fly the past three years, when ab- great rival, with the rest in the hands of fans. The deal included the paying off of all loans which the entire project, equal to out advisors to assist the solutely nothing was done,” Fly Sport Investments provided to Slavia the cost of a large nuclear Americans? he added.

EW16112802A1.indd 3 25.11.2016 12:41:15 4/5 business Mall.cz trials delivery by drone Lithium ventures spark Mall.cz says its drone is capable of carrying packages of up to two kilograms Tesla Gigafactory hopes LOGISTICS important for us to be part of Jan Pavec Jan Pavec the whole process and to be in a position to offer gained Billionaire visionary Elon t was an interesting premi- practical trial experience,” Musk might decide to locate ere – the first official pac- said Jakub Havrlant, CEO his Tesla Motors European Ikage delivery by a drone of Mall Group. According to ‘Gigafactory 2’ plant in the in the Czech Republic. Mall. Mall.cz, the trial aimed to test Czech Republic, according to cz, the market number two and verify a complete process the Space Invader blog, which among electronics online re- – from the order placement cites unnamed sources. Musk tailers, became the first Czech through to the identification announced his plans for such e-shop to test out this promi- of the goods in a distribution a facility during a recent visit to sing way of shipping goods to centre to the loading of the Germany. It would manufactu- customers. If the technology drone chosen to make the de- re both lithium-ion batteries actually makes it into every- livery to the customer. and electric cars. day use, it could considerably The trial took place in and Building a plant on the Old reduce shipping costs and around Mall’s distribution Continent would mean signifi- accelerate deliveries. Amazon, centre in Jirny, near Prague. cantly lower labour costs than DHL and Swiss Post have al- It was live-streamed on the e- Tesla faces at its US-based ope- ready tested drone deliveries -shop’s Facebook profile and rations. Among other things, with success abroad. on a dedicated website. Mall. the blog lists ready access to However, shipping of goods cz said its drone is capable deposits of lithium, necessary by drone is currently at odds of carrying packages of up in the production of batteries, with Czech legislation, mea- to two kilograms in weight. as among the benefits that ning the Civil Aviation Autho- Deliveries of this size make could stem from choosing the rity [ÚCL] had to supervise up approximately 80 percent Czech Republic. E15 reported the trial. “It may still be a long of all orders for the big online in late October on how final time before the necessary le- retailers and Mall.cz is no ex- permits were being issued for

gislation is in place but it is ception in this respect. Photo: ČTK the extraction of lithium from spoil piles in the foothills of Krušné hory [Ore Mountains] by Cínovecká deponie, owned for the most part by RSJ Pri- vate Equity (recently renamed China’s CRRC ‘in to RSJ Investments), which is talks to buy Škoda’ Jan Šindelář would include a premium for an acquisition that would essentia- Another piece has been added lly push open the door to the Eu- to the mosaic of information on ropean market for a substantial the possible sale of Pilsen-based number of Chinese firms. “Chi- Škoda Transportation to a Chi- nese investors are scouring the nese buyer. Citing commercial market for anything of interest,” sources, German business daily Handelsblatt wrote, after inter- Handelsblatt reported that the viewing Maria Leenen of con- engineering firm’s owners are sulting company SCI Verkehr. engaged in sale negotiations with Booking reported annual giant Chinese rolling stock ma- revenues of around EUR 32bn, nufacturer CRRC Group. Škoda state-owned CRRC Group is the Transportation declined to co- world’s biggest rolling stock ma- mment beyond making a vague nufacturer. However, it lacks the reference to projects jointly pur- required certificates and permits sued with Chinese partners. One to operate in Europe, the market such project was lately mentio- of which is top heavy with re- ned by E15 daily in a report on gulations and standards. Škoda a Škoda-CRRC consortium that Transportation, on the other ABI Enzo de Luca Photo: ABI Enzo

is bidding in Israel for the delive- hand, possesses the necessary Photo: DHL Bolivian president attends handover of military trainer ry of 60 electric trains worth the paperwork. Moreover, its main equivalent of around CZK 27bn. attraction and advantage is that Emission-free and celebrated for its tight turning circle planes from Zlin Aircraft Handelsblatt went so far as it is a manufacturer of complete The “Cubicycle”, essentially a quadracycle with a removable cargo container, has been introduced to the Bolivian Air Force has received its first two Zlin Z242L aerobatic trainer aircraft ordered from South to indicate a possible price tag trains as opposed to individual DHL Express fleet in the Netherlands with some green-minded words about improving carbon efficiency Moravia’s Zlin Aircraft in May. The Bolivians are purchasing nine in all at a price of USD 3.3m, which for the Pilsen-based company constituent parts, Handelsblatt and some well deserved praise for its tight turning circle. The vehicle’s reclining rider posture, the extra also covers instructor training and basic technical and parts support, according to Jane’s military in the region of EUR 2bn. That noted. With its value set to rise speed generated from that advantage and the electric power assistance allowing for faster acceleration and aerospace news server. President of Bolivia Evo Morales was present at the reception ceremo- is just shy of four times Škoda to around EUR 44.4bn by 2020, from a starting position were highlighted at the launch. “This courier service four-wheeler has a deta- ny at El Trompillo airport in Santa Cruz de la Sierra. The Bolivian Air Force’s Centro de Industria y Transportation’s 2015 revenu- the European rail transportation chable freight box with a size of around one cubic metre,” said John Pearson, head of DHL Europe, who Tecnología Aeroespacial (CITA), a research centre, is handling the reassembly process es. According to the German market is second only to its Asian noted the emission-free Cubicycle is suitable for both highways and cycle paths in urban distribution newspaper, the rather high price counterpart.

EW16112804A1.indd 4 25.11.2016 12:35:21 business

Mall.cz trials delivery by drone Lithium ventures spark up and down Mall.cz says its drone is capable of carrying packages of up to two kilograms Jakub Havrlant Tesla Gigafactory hopes CEO, Mall Group Jan Pavec If future transport correspondents write Billionaire visionary Elon about drone congestion in the Prague skies, Musk might decide to locate they may recall that it was e-shop Mall.Cz his Tesla Motors European that in November 2016 conducted the mai- ‘Gigafactory 2’ plant in the den drone package delivery flight. The Civil Czech Republic, according to Aviation authority had to supervise the trial the Space Invader blog, which as unsupervised flights are not yet legal. cites unnamed sources. Musk announced his plans for such a facility during a recent visit to Nicolas Sarkozy Germany. It would manufactu- Ex-French president re both lithium-ion batteries and electric cars. The former president lost out to his former Building a plant on the Old PM, Francois Fillon, and moderate Alain

Continent would mean signifi- Tesla Visualization: Juppé in the conservative primaries to select cantly lower labour costs than Electric ambitions. Tesla is building its Gigafactory 1, on a 2017 presidential election candidate. The Tesla faces at its US-based ope- course to become the world’s second largest building in terms French left rejoiced as he headed off to rations. Among other things, of usable space, in the US state of Nevada collect his pension, but Sarkozy did not leave the blog lists ready access to before calling on all French voters to reject deposits of lithium, necessary controlled by billionaire Karel nounced its intention to attract extremism. in the production of batteries, Janeček. There is also another, a Tesla investment. On the as among the benefits that and even bigger, lithium ex- other hand, the ministry’s re- could stem from choosing the traction project in the pipeline. presentatives have denied any James Hetfield Czech Republic. E15 reported This project, being pursued by knowledge of the most recent Co-founder, singer/guitarist, Metallica in late October on how final Geomet, is about to finalise the potential developments. “That permits were being issued for survey stage. information reached us from Epic heavy metal band Metallica released the extraction of lithium from Space Invader, run by Ru- the same source as it reached their tenth studio album, the outfit’s first in spoil piles in the foothills of ssell Adam Webb, a Prague- you. We have begun analysing eight years, Hardwired... To Self-Destruct. Krušné hory [Ore Mountains] -based American independent it,” E15 was told by Roman Pro- The thrashy double album has been put out by Cínovecká deponie, owned journalist, refers to sources rok, the head of the ministry’s under Blackened Recordings, a label created for the most part by RSJ Pri- close to the Czech government. press office. “But it is true that by the band to give them full ownership of vate Equity (recently renamed As a matter of fact, the industry minister Jan Mládek contacted their music and videos. China’s CRRC ‘in to RSJ Investments), which is and trade ministry last year an- Elon Musk a while ago.” talks to buy Škoda’ Karel Pražák Owner, Kaprain Holding would include a premium for an acquisition that would essentia- His group is fast becoming a big presence lly push open the door to the Eu- on the Prague real estate market, having ropean market for a substantial invested billions of crowns. It plans to build number of Chinese firms. “Chi- on a large car park property situated by the nese investors are scouring the O2 Arena and it has acquired a lucrative market for anything of interest,” Pařížská boulevard property. Handelsblatt wrote, after inter- viewing Maria Leenen of con- sulting company SCI Verkehr. Miloslav Tutter Booking reported annual Owner, Zlin Aircraft revenues of around EUR 32bn, state-owned CRRC Group is the The Bolivian Air Force is paying USD 3.3m world’s biggest rolling stock ma- for nine Zlin Z242L aerobatic trainer aircraft, nufacturer. However, it lacks the including training and technical support. The required certificates and permits first two have been delivered. Even President to operate in Europe, the market of Bolivia Evo Morales was present at the of which is top heavy with re- reception ceremony. gulations and standards. Škoda Transportation, on the other

hand, possesses the necessary Photo: DHL paperwork. Moreover, its main attraction and advantage is that Emission-free and celebrated for its tight turning circle E15 weekly, economic and business news magazine | www.e15.cz The “Cubicycle”, essentially a quadracycle with a removable cargo container, has been introduced to the Igor Záruba, Executive Editor, [email protected]; Marian Hronek, Editor, it is a manufacturer of complete [email protected] | Translation: TextMasters, [email protected] trains as opposed to individual DHL Express fleet in the Netherlands with some green-minded words about improving carbon efficiency Contact: Adéla Nová, Secretary | Call (+420) 225 977 668 constituent parts, Handelsblatt and some well deserved praise for its tight turning circle. The vehicle’s reclining rider posture, the extra Postal address: Komunardů 1584/42, 170 00 Praha 7 | Published CN Invest a. s., noted. With its value set to rise speed generated from that advantage and the electric power assistance allowing for faster acceleration Pařížská 130/26, 110 00 Praha 1 Josefov, IČ 04312945 to around EUR 44.4bn by 2020, from a starting position were highlighted at the launch. “This courier service four-wheeler has a deta- Advertising: Šárka Kamarýtová, Sales Manager, [email protected] chable freight box with a size of around one cubic metre,” said John Pearson, head of DHL Europe, who Production: [email protected] | Distribution: [email protected] the European rail transportation Registration: E 21420 E15 weekly, ISSN 2464-711X market is second only to its Asian noted the emission-free Cubicycle is suitable for both highways and cycle paths in urban distribution Reprints & Permissions: The Publisher will consider requests for reprints counterpart. or any other reproduction | Printed by EUROPRINT a. s. facebook.com/ e15weekly

EW16112804A1.indd 5 25.11.2016 12:35:32 6/7 opinion

Parties play regional Jana Havligerová’s diary

musical chairs Madame Trump A second unoffi- cial phase of the to the Castle regional elections The business mogul ente- retreat at Lány. Whether red politics with the slogan that will finally pave the is nearing an end “Making it Better” [Bude way to a much-sought with municipal líp]. And now Andrej Babiš White House visit, it’s too is convinced that he can early to say. But it could representatives make things even better. at least buy a Fifth Avenue The ANO leader made co- visit to Trump Tower, New spanning the va- mments to that effect on York.

Photo: ČTK Prague’s Národní třída du- rious parties sett- ring events to mark the 17 Given some favourable of the South Bohemia region, in Counted by the number of November national holiday results in October’s local ling on governing spite of the fact that it appeared elected representatives and celebrating the start of the elections for his Freedom coalitions, and that a rival coalition was being council seats, the Communists Velvet Revolution. Perhaps and Direct Democracy Par- assembled which could topple [KSČM] emerged as the clear lo- a scale could be devised to ty [SPD], Tomio Okamura regional governors the incumbent and plurality vote sers in 2016. Although PM Bohu- explain what Babiš really has found cause for much winner. slav Sobotka had recommended means: level one – making optimism. He is seeking settling into their Babiš sought a similar app- that the Social Democrats form it better; level 2 – making to gain at least 10 percent roach in the Central Bohemian regional coalitions with KSČM, it even better; level 3 – no support for his party in posts. A number region, offering the governor’s their electoral performance pro- longer as good... next year’s parliamentary spot to representatives from ved to be so poor that, unlike in elections. The larger aim of trends were the Mayors and Independents 2012, such left-wing dual coali- President Miloš Zeman is for the SPD to become discernable during [STAN] party which actually tions proved impossible. Fur- has been making some a vaunted coalition part- came in second after ANO. But thermore, most other parties “important” calls of late. ner in a future govern- this process ultimately one of Babiš’s closest had set as their goal the ousting After the US election, ment. And that has meant associates, ANO MP Jaroslava of such governing left-wing re- Zeman called Ivana Trump, Okamura ridding himself Jermanová, emerged in mid-No- gional coalitions, which served the Czech-born ex-wife of of unnecessary ballast, vember as the regional governor to unite the ranks of ANO, TOP the US president-elect, to including the Zemani- assure her of his support te Party of Civic Rights Bohumil for her becoming the next [SPO]. The SPD and SPO Pečinka Babiš does not have US ambassador to the ran on joint tickets during Czech Republic. In their October’s local elections – anywhere near as tight call, the president thanked finding success in 10 out of he first could be descri- the Zlín native – now a US- 13 regions (34 representa- bed as a kind of one for a hold on ANO as it -based businesswoman tives in total). But now evi- Tall and all for one. At the appeared a few months ago and socialite – adding dently Okamura’s appetite regional level we saw the defi- that he looked forward has grown. Let’s hope he nitive crumbling of any kind of to inviting her to Prague isn’t biting off more than barriers between the political in an ANO, STAN, ODS and TOP 09, the Christian Democrats and Castle and the presidential he can swallow... right, left and centre. Perhaps 09 coalition. Babiš also suppor- others. In pure mathematical only the Civic Democrats [ODS] ted the governor’s spot going to terms, both the Social Demo- and TOP 09 are still refusing to the Communists in the Ústí nad crats and ANO have five regional joke sit on regional councils in coaliti- Labem region, but that ultimate- governors across the country; ons with the Communists. Every ly was not enough to gain ANO that leaves one governor each other combination, however, is a spot in that region’s coalition for STAN, the Christian De- now permitted. The breakdown council. Indeed, the negotiations mocrats and the Communists. of the traditional system of poli- showed that Babiš does not have This would suggest that a So- tical parties has significantly con- anywhere near as tight a hold on cial Democrat would likely end tributed towards a loosening of ANO as it appeared a few mon- up heading the Association of the ideological barriers. ths ago. Regions. However, on top of his Another trend was the ma- Another notable factor was five governors Andrej Babiš’s nner in which ANO leader An- the regional re-birth of ODS. Af- ANO also holds the mayor’s drej Babiš framed the regional ter 2012, the party was almost post in Prague. That has led to post-election coalition talks. In entirely absent from regional a symbolic battle with the Social many cases it represented a kind government. Now it enjoys rou- Democrats over the “governor of public assessment of the futu- ghly the same representation as of governors” post, which re- re coalition partners he believes the Social Democrats and more presents the regions in its co- will be courting ANO after next than the victorious ANO. All of mmunication with the national

year’s general election. Which which shows that ODS is beco- government. inzerce also explains why Babiš assisted ming accustomed to its new role  in pressing for Social Democrat as a relatively docile junior coali- The author is a commentator “I only watch the History Channel. Their news is less

Jiří Zimola to become governor tion partner. for weekly magazine Reflex depressing because I know we already survived it.“ 255869/162

EW16112806A1.indd 6 25.11.2016 12:36:13 opinion

POLITICS opinions markets the eCONOMY businessNEWS interviews

the only english language business weekly in the czech republic inzerce  255869/162

EW16112806A1.indd 7 25.11.2016 11:39:27 8/9 top story

Pavel Sobíšek Chief economist, Disentangling the numbers UniCredit Bank

A The budget deficit should be much lower. The problem is not so much the In these pages last week, finance minister final number itself, but rather an absen- ce of effort by the government to spend Andrej Babiš tackled “falsehoods” about how money effectively. One reason the Czech economy is doing well is that business he has been able to achieve the country’s first owners – of both large and small firms budget surplus since 1995. This week, some – have made major progress in recent years with regards to cost management. eminent economists address questions on the In contrast to that, the structure of state expenditures has been set in stone for true fiscal condition of the Czech Republic many years now, and no-one is underta- king a systematic examination of whe- ther the house of cards will collapse once the economy slows down.

B Firstly, the Czech Republic, along Given the projections for the Czech Republic’s end To which 2017 public expenditure with France and Belgium, is a Euro- pean champion in terms of providing of year fiscal health, do you agree that the planned increases would you most object, grant subsidies to businesses. Secondly, A B we also excel at collective consumpti- CZK 60bn deficit for next year is justifiable? or consider the most damaging? on, which is mainly expressed through providing healthcare payments for the so-called state insured – meaning pen- sioners, children and the unemployed. Such a system of transfer into healthca- re is not systematic, but rather grows based on the whims of which minister has gotten the longer end of the stick. Thirdly, I consider it irresponsible that the government has gained the power to increase pensions irrespective of the revenue health of the pension system.

Vladimír Pikora Chief economist, Next Finance

A No, it isn’t. If one year you manage the state purse and end up with a surplus, and you forecast increased economic growth for the subsequent year, then to project a deficit is about as ill-advised as telling an employee that the business is doing better than last year, which is why we are going to be cutting wages. The state budget is ALWAYS a political decision about government priorities. And right now the priority is to show voters that building is taking place, and that wages and pensions are going up. It is just designed as bait for dumb voters. Smart voters look at the final tally of the state budget, and for the last four years that has been terrible.

B That can only be assessed after the fact. One might think that a CZK 5bn increase in defence spending was exce- ssive, but then if a war breaks out a year from now we will view such a decision very differently. Suddenly the increase won’t be viewed as unnecessary but as prudent foresight. Another issue is the quality of investments. In theory, infrastructure investments represent

EW16112808A1.indd 8 25.11.2016 12:37:15 top story

a net gain. But when you build [Prague’s a surplus this year, then it will be unforeseen “dark event” – meaning Pavel Sobíšek underground road] Blanka Tunnel in important to realise that the cause of so long as our economy is not hit by Chief economist, such a manner as to actually worsen the this is not down to an improvement in some kind of entirely unexpected, Disentangling the numbers UniCredit Bank passage of traffic through the capital, revenues – thanks to better economic but decidedly negative economic and you also implement parking zones, performance, and also presumably shock – then, similarly to this year, then they certainly do not represent more effective tax collection – but a balanced budget is entirely feasi- A The budget deficit should be much a net plus. I would rather focus on an rather weaker than planned expen- ble. But sadly 2017 will be a general lower. The problem is not so much the analysis of investments. Not every in- dituresf o allotted funds, primarily election year, and so politicians won’t final number itself, but rather an absen- vestment is prudent. But in this country capital expenditures. Over the first hesitate to hand out presents which ce of effort by the government to spend we still continue to rush to spend all 10 months of this year, these fell by in reality are paid for by foreign [lo- money effectively. One reason the Czech possible EU grant monies. And that more than CZK 50bn year on year: ans]. And so the net effect of this will economy is doing well is that business is foolhardy. Furthermore, I fear that this was as a result of lower co-finan- in all likelihood be an end of year owners – of both large and small firms manyU E funds end up disappearing cing of projects along with the EU deficit to the order of around CZK – have made major progress in recent through corruption. European money due to the new EU programming 40bn. But this will purely be the re- years with regards to cost management. played a fundamental role in Greece’s period still getting up and running. sult of bribing voters in the run-up In contrast to that, the structure of state debt crisis. But 2017 will see higher capital ex- to the elections. expenditures has been set in stone for penditures, and other government many years now, and no-one is underta- expenditures will also grow, partly B Increasing the number of public king a systematic examination of whe- Marek Dřímal becausee w will be in an election year. sector workers. Since 2012, their there th house of cards will collapse once Economist, Komerční I personally believe that the actual numbers have grown by 23,000; that the economy slows down. banka 2017 deficit will be lower than the makes a total today of 437,000. But forecast CZK 60bn. But it does seem that does not, by far, represent the ,B Firstly the Czech Republic, along realistic to assume that next year’s actual total number of employees To which 2017 public expenditure with France and Belgium, is a Euro- A One-off factors played a large role budget will indeed end up in the red. in the public sector. The real figure pean champion in terms of providing in this year’s fiscal state of affairs: (1) is somewhere close to one million, increases would you most object, grant subsidies to businesses. Secondly, a massive influx of EU funds for the B I don’t want to use labels along the which represents around a fifth of the B we also excel at collective consumpti- last funding programming period; (2) lines of “the worst” or “damaging” total workforce of the country. And or consider the most damaging? on, which is mainly expressed through an increase in tax revenues thanks to But I would welcome the question according to OECD data, Czech pub- providing healthcare payments for the lasts year’ unusually strong economic of wage levels and wage increases lic sector employment – recalculated so-called state insured – meaning pen- growth and a continued growth ex- sioners, children and the unemployed. pansion of this year, albeit at a slower Such a system of transfer into healthca- tempo; (3) lower capital expenditures I believe it is unfortunate that re is not systematic, but rather grows co-funded via EU grant subsidies due based on the whims of which minister to the fact that the new EU program- the government took on the has gotten the longer end of the stick. ming period is only just getting off the Thirdly, I consider it irresponsible that ground. Another factor could be [the power to increase pensions the government has gained the power new requirement] for firms to submit to increase pensions irrespective of the a VAT “control report”, but one will irrespective of the fiscal health revenue health of the pension system. have to wait for the full year figures for a proper assessment of this policy. of the overall pension system Seen in this light, the current con- Vladimír Pikora dition of the public purse is nowhere across our healthcare and educa- into only full-time work – represents Chief economist, Next near as miraculous. And the planned tion systems being addressed via around 35 percent of total employ- Finance CZK 60bn deficit for next year is thus a systematic framework instead of ment in the country. No other OECD nowhere near as much of a surprise, being tackled via one-off measures country has such a high proportion. because in 2017 the aforementioned implemented on the eve of elections. Even Scandinavian countries have A No, it isn’t. If one year you manage the one-off factors will no longer apply, or Important, and potentially painful, a smaller share than this. state purse and end up with a surplus, they will be far less significant. And so questions need to be asked with re- One experienced Czech banker and you forecast increased economic that represents more or less a return gards to the long-term sustainability did not hesitate to use the phrase growth for the subsequent year, then to to business as usual. Our forecast of our pension system. It may be con- “bureaucratic terror”. The gover- project a deficit is about as ill-advised projects that the final deficit will be sidered heresy to say this, but I don’t nment is apparently vacuuming up as telling an employee that the business lower, meaning something closer to view the question of whether the final tens of thousands of qualified per- is doing better than last year, which is CZK 45bn. This is because we fore- 2017 budget ends up CZK 20bn more sonnel for the public sector. And why we are going to be cutting wages. cast higher economic growth than that or less in one direction or another to thene w have a staff shortfall in the The state budget is ALWAYS a political used to plan the budget. that now forecast by the government productive economy. The banker in decision about government priorities. as crucial. There are far more impor- question also argued that, in additi- And right now the priority is to show B The budget proposal appears to plan tant and fundamental questions that on, they are unleashing “regulatory voters that building is taking place, and for expenditure increases across all need to be asked instead. terror” as well. that wages and pensions are going up. It the major areas. Right now, there is The private sector is a victim of is just designed as bait for dumb voters. nothinge w see that stands out as egre- its own success and the growth of Smart voters look at the final tally of gious. Expressed differently: let us Lukáš Kovanda its own productivity. It is helping the state budget, and for the last four hopet tha the state is able to restart Chief economist, to pay for ever more public sector years that has been terrible. investments into new infrastructure Roklen workers, who then “in return” poach – that is an area which has certainly private sector staff. But the process B That can only be assessed after the been lacking this year. is not sustainable, as can be seen via fact. One might think that a CZK 5bn A I don’t agree with it. When else can the breathlessness of economies in increase in defence spending was exce- governments strive for surpluses, the West. ssive, but then if a war breaks out a year Radomír Jáč or at least a balanced budget, than from now we will view such a decision Chief economist, during such economically favourable very differently. Suddenly the increase Generali Investments conditions as those which we now won’t be viewed as unnecessary but see? On the other hand, let’s not put Taken from the magazine as prudent foresight. Another issue is the cart before the horse – next year’s the quality of investments. In theory, A If, as in all likelihood looks to be the deficit will likely not actually be CZK infrastructure investments represent case, the state budget ends up with 60bn. It will be lower. Short of some

EW16112808A1.indd 9 25.11.2016 12:37:24 10/11 face to face

become entangled. The main reason is negative interest rates. We should JAROSLAV KUBERA never have gotten to this point. It is totally abnormal for me to loan you one-hundred and for you to have to pay me back ninety. Only a madman would accept that – yet this is where we find ourselves. Negative interest rates Can quantitative easing bring about anything positive? Euros are coming off the printing presses at full speed. But what to do about the debts accumulated by at-risk social groups, or government may cause World War III debt? The entire planet has accumula- ted such debts that no economic model exists that could do away with them. But what is clear is that amidst the ashes

of war, creditors and debtors are both nowhere to be found.

Returning to the EU, with regards to security questions this body really has very few powers at all. That is up to member states, who must reach agreements. We can’t even reach agreement in the Senate. I used to travel to NATO headquarters and they would constant- ly criticise us there, saying that we are not fulfilling our defence spending commitments. We tried to do just that, but in peacetime there is very little

ivic Democrat Jan Pavec So are you now seeking to determine Czexit is not a solution. It is an option, your level of support? but not a tactically viable one. What is Jaroslav Kubera There has been talk that you might The greatest advantage is held by the important is to secure the support of run for president. Will you? last candidate to enter the field, because other countries, including those outside has been Why start with that question? That’s they are fully acquainted with all their of the V4 Visegrad Group, to reorganise C the last item. Those who start off too rival competitors. the EU. I am critical of the way that a senator for 16 years. fast on a marathon are usually the ones the EU operates. The Lisbon Treaty The political matador overtaken before the finishing line. The Miloš Zeman claims to be bringing is the root of today’s problems; back deadline for that [meaning submitting Chinese capital into the Czech Re- then [in 2009], 17 of us voted against from Teplice was a formal candidacy –Ed.] is March 2017. public. Would you also seek to play its adoption in the Senate. a significant role on the internatio- recently elected to serve If you did run, how would you differ nal scene? So what kind of an EU do you envi- from the incumbent? There are certain lines that we should sage? as deputy chair of the Miloš Zeman has failed to keep his pro- not cross. Those are a given in our sys- The ideal solution would be to scrap the mise of bringing together an already divi- tem. At issue is not whether we are powers of the European Commission. upper house. Speaking ded society. And a presidential candidate a small or large country. Which is why That is a body of unelected officials, will have to reach out to a similar group I criticised the recent declaration [by and there are thousands of those in in a Senate restaurant, of voters to those he has. Sure Zeman is the four highest constitutional figures Brussels. Even on the cusp of a Third having difficulties with his once touted of the Czech state –Ed.] directed at World War they continue to come up Kubera talked of the concept of appealing to the “working China. And I don’t think that any kind with fresh nonsense. burdens of regulation intelligent”. Alas, mainstream voters are of dramatic sanctions have been levied rather different than that. People come by the other side [as a result of the up- Why do you believe we are on the and the need to increase up to me and say “Our entire family will roar over official meetings in the Czech cusp of a Third World War? From vote for you”. So then all I need are ano- Republic with the Dalai Lama]. where does this threat stem? the power of the second ther 3,223,822 votes and I’ll win! One You are very critical of the European It isn’t important where this will erupt. needs to be able to count a little – all Union. What is your response to tho- It could erupt from a local conflict into

chamber of Parliament candidates should be able to do that. se calling for a Czexit? which more and more outside players Photos: E15 Michael Tomeš

EW16112810A1.indd 10 25.11.2016 12:38:31 face to face

become entangled. The main reason appetite for it. It costs money and the only reason to guarantee that their nial abilities, while everyone else is no is negative interest rates. We should yields no political points. There will department is preserved. good. Our freedoms are seeping away JAROSLAV KUBERA never have gotten to this point. It is always be people who say “Use that through our fingers and we are barely totally abnormal for me to loan you money to build schools”. That is how You have also criticised excessive re- even aware of it. one-hundred and for you to have to it is when the threat is not viewed as gulation in the Czech Republic. Why, pay me back ninety. Only a madman discernible. Even now we hear “Let in your view, is excessive regulation Your own Civic Democrat (ODS) par- would accept that – yet this is where them shoot each other in Syria – that’s such a problem right now? ty came out with a proposal to ban we find ourselves. far away”. But terrorism is bringing Everyone can see it. During the Octo- trucks from overtaking each other. Negative interest rates Can quantitative easing bring about such threats closer to us, and even- ber 28 [national holiday] many people So where is the boundary for what anything positive? Euros are coming off tually hiding under the covers will no couldn’t do their shopping because sto- should or should not be regulated? the printing presses at full speed. But longer work. res were closed. It is absolutely foolish. The person who came along with that what to do about the debts accumulated Then we have the supposed Holy Grail idea had put their mind to the issue by at-risk social groups, or government Can something be done to rectify of cashless payments. I call it “electro- once. I always say that you should think may cause World War III debt? The entire planet has accumula- that? nic evidence of your shopping” [a dig at about something once, twice, then ted such debts that no economic model The EU knows, but does not want to the soon to be introduced mandatory a third time – and then you realise that exists that could do away with them. But admit, that given our principles, the- electronic receipts, or EET –Ed.]. One your initial idea was completely non- what is clear is that amidst the ashes re really is no rational solution to the candidate for the Senate, who shall re- sensical. You should ask: what would be the impact of the ban? Trucks would ride in the right slow lane and cars in the left lane. Evidently someone had The EU knows, but does not want to admit, that given the bright idea that this was favourable. our principles, there really is no rational solution The legislative process cannot be neverending. During the 1990s, we to the migration crisis. We will defend our borders, held talks with the French, who spent 14 years discussing one paragraph of but who will give the order to shoot when faced with legislation on municipalities. And then the legislation was [retroactively] put 10 women, each with small children in their arms? into effect for those 14 years. In our country, we don’t have any discussions; amendment after amendment comes of war, creditors and debtors are both migration crisis. We will defend our main nameless, boasted that he taught and goes; from the legislative side, laws nowhere to be found. borders, but who will give the order to people to eat healthily. And that who are something of a farce. Setting aside shoot when faced with 10 women, each doesn’t eat healthily should have to pay the political aspects, the totalitarian- Returning to the EU, with regards to with small children in their arms? And if higher health insurance premiums. -era legislation on national commi- security questions this body really there are 5,000 then the first 10 get shot But they forgot to tell us how they ttees [administered municipalities in has very few powers at all. That is up and then the rest stampede in over their intend to find out citizens’ eating habits. Czechoslovakia from 1945-1990 –Ed.] to member states, who must reach bodies anyway. Zeman’s solution is to Perhaps the only way is to closely mo- was formulated correctly, because it agreements. put them on an island somewhere... we nitor their shopping habits. “Sorry, fri- was written by legislators. It wasn’t We can’t even reach agreement in may laugh, but it really is just nonsense. end, but you bought a pork belly three meddled with by MPs. And then we the Senate. I used to travel to NATO The EU has insisted that it is fixing the times this month, so zero points.” Those have a mere 30 days in the Senate to headquarters and they would constant- problem. But in the meantime it has are the kinds of silly ideas which, alas, correct something that is impossible ly criticise us there, saying that we come up with another 10 nonsensical always manage to find some support. to fix. are not fulfilling our defence spending directives. What are the people there Those people are nothing but inquisi- commitments. We tried to do just that, supposed to do? It is like our minis- tors, deluded into thinking they have You have been a senator for 16 years but in peacetime there is very little tries. They issue directives, as that is been ordained with some kind of ge- now. How do you explain the pro- blem of low voter turnout in the Czech Republic? Czexit is not a solution. It is an option, A quick idea off the top of my head: if but not a tactically viable one. What is the Senate had the right to veto bud- important is to secure the support of get deficits, then voter turnout would other countries, including those outside certainly be higher. of the V4 Visegrad Group, to reorganise the EU. I am critical of the way that Read more at E15.cz/weekly the EU operates. The Lisbon Treaty is the root of today’s problems; back then [in 2009], 17 of us voted against its adoption in the Senate. Jaroslav Kubera (69) His first taste of politics came So what kind of an EU do you envi- in 1967 when he joined the sage? Czechoslovak Community Party The ideal solution would be to scrap the [KSČ]. A year later, following the powers of the European Commission. crushing of the Prague Spring, he That is a body of unelected officials, was thrown out. Kubera failed to and there are thousands of those in complete his university education Brussels. Even on the cusp of a Third and then spent 20 years working World War they continue to come up as the head of the sales division with fresh nonsense. of state firm Elektrosvit Teplice. Joined the Civic Democratic party Why do you believe we are on the [ODS] at the start of the 1990s. cusp of a Third World War? From Has been a senator for Teplice where does this threat stem? region since 2000, while also It isn’t important where this will erupt. serving as the mayor for 14 years It could erupt from a local conflict into of the northern Bohemian town. which more and more outside players Photos: E15 Michael Tomeš

EW16112810A1.indd 11 25.11.2016 12:38:40 12/13 feature

Legendary wisecracks of the smiling beasts ow fast could Le- humour that lit up small lightbulbs This vocabulary of “folk creativity loyal police, could never persecute as of resistance to the endless grey in times of socialist realism” compiled they appeared, seemingly without an nin’s sleigh go? darkness of the post-1968 “norma- by the authors forms a truly surreal author, out of the blue. lisation” period of the then Socia- collage. It has the power to make one The book itself cannot identify the Where could you list Czechoslovakia. The book has feel younger once again but can also creators of terms such as “Husák’s si- H a washable cover and looks as if it has make those of the right age shiver from lence”. Using the name of the then Party visit Jakeš’s oracle shri- been made from faux formica that is head to toe at their recollections of tho- secretary general and Czechoslovak ne? And who was the covered in stickers – the regular look se times. president, it described a tunnel built of many a Socialist-era bathroom in The Nazis, who oppressed the Czech near the Communist Central Commi- paupers’ Karel Gott? the high-rise panel flats. The publi- nation before the Bolsheviks, labelled ttee building to channel road traffic cation is a collection of period – and the Czechs “smiling beasts”. The book and stifle the noise of passing vehicles. Milan Tesař politically incorrect – jokes, riddles, presents the smiling beasts at their Then there is “Hululi” (as in HUsák’s song covers, word plays and slang best, poking spiteful fun at those in LUxurious LIquor, a nickname for the It’s invariably after the fifth beer or expressions coined as a counterba- power. It describes forms of covert country’s version of rum-like spirit) so when the party, tired of discussing lance to the official newspeak that protest against the Communist regi- and “meat queue” (a monicker given football and politics, switches to nos- was churned out each and every day me and the Chinese whispers that the to a monument of Stalin leading a pro- talgia. It may stem from a yearning by the Bolshevik media. regime’s muscle, in the shape of the cession of the working class). As one for the times when we were still able of the authors, Nejedlý, explains in his to knock back 10 half-litre glasses, brilliant foreword: “The book is a pro- while asking the waiter to “mark ‘em duct of admiration for folk humour that with a rake” [i.e. pen a stroke on a pa- has become part of our natural wealth, per tab for each beer consumed], and since we lack oil, gas and even access to still be at our school desk at eight the sea. This book was created in homage next morning without a hammering to the nameless wags, even though they headache. Somehow, confectionery are smiling beasts who wave one hand seems to be the most frequent focus. at Husák high upon a platform while Where are the impeccable tastes of making obscene gestures with the other Hořické tubes with their genuine cho- and who regularly fail in elections but colate filling, the Broňa soft drink or never lose their sense of humour.” the one-crown coconut-soy bar that So, ponder these: How fast could Le- was hard enough to break nuts with? nin’s sleigh go? Who was Děda Zradílek A different take on nostalgia comes [Grandpa Traitor]? Was it possible to in the form of a book by the authors drink a dead smurf? Where could you Jan Nejedlý and Jakub Šofar, Po práci visit Jakeš’s oracle shrine? Who were legraci [Fun Follows Work]. Their the boys from [class] 5B (or VB)? How approach is sober and systematic and many wheels were there on the runa- homes in not on the edible aspects way tent? And who was the paupers’ of long gone years but on the coded Karel Gott?

EW16112812A1.indd 12 25.11.2016 12:39:07 feature PHOTOS: NAKLADATELSTVÍ BIZBOOKS BIZBOOKS NAKLADATELSTVÍ PHOTOS:

Taken from the magazine

This vocabulary of “folk creativity loyal police, could never persecute as Well, listen, I’ve decided to not tell in times of socialist realism” compiled they appeared, seemingly without an you! If you are too young to remem- by the authors forms a truly surreal author, out of the blue. ber, tough luck. Grab the book, leaf collage. It has the power to make one The book itself cannot identify the through it and try to understand the feel younger once again but can also creators of terms such as “Husák’s si- humour that prevailed among your make those of the right age shiver from lence”. Using the name of the then Party dads and granddads. It may very well head to toe at their recollections of tho- secretary general and Czechoslovak happen that your degree of under- se times. president, it described a tunnel built standing turns out to be comparable The Nazis, who oppressed the Czech near the Communist Central Commi- to that of the older generations when nation before the Bolsheviks, labelled ttee building to channel road traffic it comes to uploading photos to the the Czechs “smiling beasts”. The book and stifle the noise of passing vehicles. Cloud. presents the smiling beasts at their Then there is “Hululi” (as in HUsák’s best, poking spiteful fun at those in LUxurious LIquor, a nickname for the power. It describes forms of covert country’s version of rum-like spirit) protest against the Communist regi- and “meat queue” (a monicker given me and the Chinese whispers that the to a monument of Stalin leading a pro- The images that richly regime’s muscle, in the shape of the cession of the working class). As one illustrate the book defy of the authors, Nejedlý, explains in his the all-encompassing brilliant foreword: “The book is a pro- greyness of the duct of admiration for folk humour that normalisation period has become part of our natural wealth, since we lack oil, gas and even access to sea. This book was created in homage to the nameless wags, even though they are smiling beasts who wave one hand at Husák high upon a platform while making obscene gestures with the other and who regularly fail in elections but never lose their sense of humour.” So, ponder these: How fast could Le- nin’s sleigh go? Who was Děda Zradílek [Grandpa Traitor]? Was it possible to drink a dead smurf? Where could you visit Jakeš’s oracle shrine? Who were the boys from [class] 5B (or VB)? How many wheels were there on the runa- way tent? And who was the paupers’ Karel Gott?

EW16112812A1.indd 13 25.11.2016 12:39:15 14/15 food society

La Casa honoured by visit of Cuban master Á la grandma rum maker Asbel Morales, one of the lick open key maestros roneros [master rum-makers] of the recipe Havana Club brand, arrived in Prague to visit the La book and leaf Casa de la Havana Cuban F bar. He not only presented through the pages prestigious rum from to those old soup the Havana Club Icónica collection, he also “married” recipes perfected the prized liquor to some superb cigars, which of over the years by course, just like rum, are an indispensable part of generations of Cuban culture. Morales oversees every stage of the grandmothers and Havana Club rum-making great grandmo- process from the selection of the finest sugar cane thers to distillation and careful ageing to intuitive blending. Štěpán Vašák Born overlooking a Santa Domingo rum distillery in Bake finely chopped onion 1968, he was recognised as and garlic in butter until having rare skills after being golden brown, sprinkle in invited to take part in a flour and fry to achieve a nosing session light roux. Pour in the stock, bring to the boil and simmer 262781/15 for 15 minutes. Add peas and marjoram, cook for five mi- nutes and blend, then mix in the cream. Salt, pepper and warm. Heat the oven to 200 ºC and cover a baking tray with baking paper. Cut the bread into crutons, spread them across the covered tray and smear with vegetable oil. Cut prosciutto into small pieces and bake to your taste along with the crutons. S NÁMI WWW.E15.CZ Pea soup 4 SERVINGS preparation:  40 minutes

1 onion 3 cloves of garlic 2 tbsp butter VYDĚLÁTE 1 tbsp flour 1.5 l chicken stock 400 g frozen peas 1 handful of marjoram 100 ml cream (33%) salt and pepper breadstuff for crutons vegetable oil 15 MINUT prosciutto ham Taken from the magazine PRO EKONOMIKU A BYZNYS Photo: archive

EW16112814A1.indd 14 25.11.2016 12:39:46 society

La Casa Accountants gather for honoured by visit a highly certificated celebration The Czech Chamber of Certified Accountants ceremoniously presented 14 certifi- of Cuban master cates to graduates who passed its specialist examinations. The event took place Á la grandma rum maker on the premises of Green Garden Hotel in central Prague. Among those taking Asbel Morales, one of the part in this year’s exam certificates presentation were accounting representatives key maestros roneros known throughout their profession in this country, including the president of the [master rum-makers] of Union of Accountants of the Czech Republic, Jana Pilátová, the chair of the certified Havana Club brand, arrived accountants’ Chamber Libor Vašek and the director of the Institute of Certificated in Prague to visit the La Accountants Jaroslav Louka Casa de la Havana Cuban bar. He not only presented prestigious rum from the Havana Club Icónica collection, he also “married” the prized liquor to some superb cigars, which of course, just like rum, are an indispensable part of Cuban culture. Morales oversees every stage of the Havana Club rum-making process from the selection of the finest sugar cane to distillation and careful ageing to intuitive blending. Born overlooking a Santa Domingo rum distillery in 1968, he was recognised as having rare skills after being invited to take part in a Photo: communications nosing session Photo: kcú

262781/15 advertising

S NÁMI WWW.E15.CZ VYDĚLÁTE 15 MINUT PRO EKONOMIKU A BYZNYS Photo: archive

EW16112814A1.indd 15 25.11.2016 12:39:57 16 diversions

picture of the week Photo: Reuters Has Europe forgotten the Heavenly Hundred? Over one hundred peaceful protesters, now known as the “Heavenly Hundred”, were killed in the battle at the heart of Kiev during the Euromaidan Revolution. Ukrainians, who gathered in places of reverence in Maidan Nezalezhnosti [Independence Square] to mark the third anniversary of the start of the revolution, shed tears as they remembered the fallen, many of whom were shot down by Berkut special police officers while wearing EU ribbons. What became two-yeara war for freedom from Russian interference and for a European future has by now claimed the lives of thousands

invitations

MUSIC FESTIVAL FILM FOLKLORE GIG GIG Brazilelectro night La tortue Prague’s Christmas Jahmusic Reggae Už jsme doma, at Palác Akropolis rouge (2016) markets Festival Divadlo Archa Photos: Archive Dutch musical ensemble Zuco This French dialogue-less The festive season’s markets Reggae group and art collective The three-decade-old 103 is the big attraction of the animated film follows the open daily at Old Town Square, No-Maddz from Kingston, progressive rock band, a bastion Brazilelectro night, aka X Mass major life stages of a castaway Wenceslas Square and many Jamaica, will spread positive of the Czech alternative scene, Respect Festival, at the Prague on a tropical island populated other places until 6 January vibrations at Prague’s Lucerna along with the South Bohemian venue. Support acts: Ohm only by turtles, crabs and birds. 2017. Colourful shopping, Music Bar. Also appearing are Philharmonic Orchestra, Square DJ Set – Charlie One & Billed as a sincere emotional demonstrations of traditional Czech band HomeBwoyRasta, perform at the Prague theatre Jan 2, DJ Baltazar, DJ Robot, ride, with little to show, yet a lot cuisine making, hearty dishes, Rising Spirits, JAM plus DJs. on 2 December under the baton DJ Jeffology. 2 December. to tell. Various cinemas. carol singing and mulled wine. 28 November. of American conductor Joshua Kohl feature.

About us. E15 Weekly is one of a group of business and economics-oriented publications printed by CN Invest a. s. It is a sister title to the E15 daily. Both periodicals, as well as a number of others, came under new ownership in the spring of 2016 when part of a portfolio formerly published by Mladá fronta a. s. was acquired. CN Invest a. s. publishes a broad range of print and online titles. In addition to other business-minded titles, the company also publishes lifestyle and women’s magazines (Maminka, Dieta, Moje psychologie) and children’s titles (Mateřídouška, Sluníčko). The publishing house also enjoys a considerable presence in the segment of technical and men’s online titles. CN Invest, and its sister company CZECH NEWS CENTER a. s. (the biggest publishing house in the Czech Republic, with titles such as Blesk, Reflex, Svět motorů, ABC), are members of the media concern CZECH MEDIA INVEST a. s.

EW16112816A1.indd 16 25.11.2016 12:40:32