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Mortgage Boom in the Czech Republic The Czech Economy Is Experiencing an Exceptional Period Design, Image, Quality South Bohemia Region 11-12 2006 CONTENTS Ministry of Industry and Trade I INTRODUCTION CZECH BUSINESS Question of the Month for Martin Tlapa, Deputy Minister of Industry AND TRADE and Trade.........................................................................................................4 Economic Bi-monthly Magazine with I ECONOMIC POLICY a Supplement is Designed for Foreign The Czech Economy Is Experiencing an Exceptional Period...............................5 Partners, Interested in Cooperation with Mortgage Boom in the Czech Republic............................................................7 the Czech Republic I Issued by: INVESTMENT Czech Republic – On its Way to Becoming and Ideal Location PP AGENCY s.r.o. for Sophisticated Investment ............................................................................8 Myslíkova 25, 110 00 Praha 1, Czech Republic PP Agency I BUSINESS AND PRODUCTION Company with the ISO 9001 certified quality management system for publishing services Zetor Successful with Smaller Tractors on Russian Market ..............................10 Candy Ovens Lit by Czech Light Bulbs............................................................10 EDITORIAL BOARD: Martin Tlapa (Chairman), Ivan Angelis, I HOW TO DO BUSINESS IN THE CZECH REPUBLIC Zdena Balcerová, Jiří Eibel, Zbyněk Frolík, Companies from EU Able to Found Cooperatives in the Czech Republic ........12 Růžena Hejná, Alžběta Honsová, Josef Jílek, Ivan Jukl, Marie Košťálová, Marie Pavlů, Consumer Rights When Buying Goods in the Czech Republic ........................13 Pavla Podskalská, Josef Postránecký, Libor Rouček, Jiřina Semanová, Jarmila Škvrnová, Ivan Voleš I REGION NUTS 3 – South Bohemia Region ..........................................................14 – 29 MANAGING EDITOR: Jana Vápeníková I SERVICES EDITORS: High Level of Czech Interior Design ...............................................................30 Jaroslava Bradová, Naďa Vávrová Design, Image, Quality ...................................................................................33 REGULAR COLLABORATORS: I PRESENTATION OF FIRMS Eva Tomášková ZAT, a.s............................................................................................................2 TRANSLATION: Bohemia Properties a.s. .................................................................................25 Vlasta Benešová, Alena Kenclová, BRISK Tábor a.s..............................................................................................29 Robert Krátky, Dagmar Šímová, Bőttcher ČR, k.s.............................................................................................31 Halka Varhaníková ČKD NOVÉ ENERGO, a.s................................................................................35 READ: RODOKOV 91 s.r.o. ......................................................................................36 Mathew Booth, Ivana Kadlecová, Katherine McCloghry, Zuzana Pavlíčková Minerva Česká republika, a.s., Hotel Concertino – Zlatá Husa, Armor s.r.o., Asociace mezinárodní spolupráce firem, s.p.o. GRAPHIC DESIGN: Miloslav Bucvan, Helena Dvořáková Cover: www.orangedisc.cz DEADLINE: 31/09/2006 ADDRESS: Myslíkova 25, 110 00 Praha 1 Czech Republic Phone: +420 221 406 623, +420 221 406 626 Fax: +420 224 934 383 e-mail: [email protected] www.ppagency.cz www.mpo.cz/cbt Press run: 13.500 copies. The number of printed and sold copies České Budějovice of the journal is verified by auditor, HZ Praha, s.r.o., member of PANNELL KERR FORSTER Worldwide. It is not allowed to reproduce any part of the contents of this journal without prior consent from the editor. Attitudes expressed by the authors of articles carried by CBT need not necessarily be consistent with the standpoint of the Publisher. MK ČR E 6379, ISSN 1211-2208 „Podávání novinových zásilek povoleno Českou poštou, s. p., odštěpný závod Přeprava, č. j. 3468/95, ze dne 24/10/1995“ The Czech Economy Is Experiencing an Exceptional High Level of Czech Interior Design Period 3 | INTRODUCTION Question of the Month for Martin Tlapa, Deputy Minister of Industry and Trade I Programme comprise and what will How in your opinion is the new it focus on in particular? Operational Programme Enterprise We plan to announce a total of 15 support and Innovation for the period 2007- programmes that will focus on six priority 2013 different from the Operational axes of the new operational programme. Programme Industry and Enterprise, We would also like to continue to allocate which is due to end this year? Its certain means of support to beginning very title clearly suggests that entrepreneurs, who generally have good money from EU structural funds business plans; however, they lack the shall be used above all for the necessary financial resources. By means of modernisation and application of financial instruments and in part also new technologies. Will more money subsidies, we also wish to help support the also go to research and further development of such companies. development of new technologies? On the other hand, the most popular The newly prepared operational programme so far, which bears the apt programme for the period 2007–2013 title "Development", shall no longer be does not merely carry a different title; it applied everywhere in future. Instead it really represents a specific qualitative will be limited to the structurally most shift. We will promote to a far greater depressed regions. Considerable support extent than in the past a direct is also planned for the development of connection along the research- business information and communication development-innovation-enterprise axis. technologies. A large portion of subsidies This will mean a greater intensity of will go to the advancement of innovations cooperation of the research and and to the development of consulting and development base with entrepreneurs. It marketing services. Furthermore, we will not only involve scientific and expect to reduce the energy demands of technical parks, business incubators, production and to increase the use of centres for the transfer of technology or renewable sources of energy. Over a half clusters, which are today already among of all funds will, however, go towards the initiatives that receive support, but will modernisation and building of also apply to new forms of cooperation. infrastructure. Money invested in The programme shall focus for instance infrastructure will not only benefit on the promotion of the founding and individual companies, it will also help to development of spin-off type companies, create a more favourable business and i.e. new companies founded by students innovation environment for the majority and young scientists on university of companies in a given region. grounds, and regional associations that focus on research in a particular branch I and are able to attract young research Are you able to say at this point and development experts – so-called how much money has been ear- poles of excellence, on direct subsidies in marked for Czech businesses? MORE AT: support of innovation, and so on. In According to present results of principle, this will not involve drawing EU negotiations, the Operational www.mpo.cz funds for basic research and Programme Enterprise and Innovation development, but instead for the swift should receive an 11.75 % share in www.czechtrade.cz application of the results of research and structural funds earmarked for the Czech www.ceb.cz development in production – i.e. for so- Republic by the European Union. called industrial research - commonly Together with national co-financing of www.egap.cz referred to abroad as applied research. a 15 % share from the budget of the Ministry of Industry and Trade, we www.export.cz I should arrive at an equivalent of How many individual programmes approximately CZK 100 billion (ca EUR will the new Operational 3.4 billion). | 4 CZECH BUSINESS AND TRADE The Czech Economy Is Experiencing an Exceptional Period The year 2005 was an The growing willingness and capacity of highly significant impact of foreign trade on exceptional one for the Czech people to buy is becoming the decisive the real growth of the Czech economy in factor of Czech economic growth. 2005 was goods trading, which accounted for economy in terms of nearly all Investment and especially foreign trade, the 4.1 percentage points of the said 4.4 % parameters relating to the driving factors of the acceleration of economic contribution. The export and import of country’s macroeconomic growth in the CR in 2005, ranked second in services was substantially smaller than that of terms of year-on-year growth in the first half goods - with only about one-tenth of the development. In addition to the of this year, behind household consumption, volume. In the first half of 2006, however, the highest real increase in GDP in another important GDP component. These influence of trade in goods and services on the last decade, 2005 displayed three basic components boosted the growth year-on-year real GDP growth (+6.6 %) a significant decrease in the of the country’s GDP by 6.6 % in the first half dropped to 0.7 %., while net goods exports of 2006. This year’s second quarter showed contributed 1.5 percentage points to GDP imbalance of various indicators, a slight drop in growth, with GDP rising year- growth. when the unemployment rate on-year by 6.2 %, while in the first quarter dropped and the massive flow of