Monday, 1 August 2016 Spring chicken graduates Issue 126 l newsstand price CZK 24/¤ 1 l www.e15.cz 126 Companies beset by 0

unworldly job candidates, 40 says Hays chief FACE TO FACE pages 10–11 45431 771803

‘Little Prague’ 9 Remind you of some place? Daytrippers drawn to ’s picturesque Kłodzko SPECIAL REPORT pages 12–13 Banks back the proton prize Photo: Profimedia.cz

Financially stretched eded in striking a new agreement with Immorent and PTC have agreed and the proton therapy deployment creditor Immorent, an Erste financial long-term leasing and a debt maturi- success worldwide,” said PTC director PTC cancer treatment group member. Immorent provided ty extension. “We perceive the agree- Iva Taťounová. loan finance for constructing the cli- ment as a positive development as it The negotiations with Immorent facility has been given nic’s CZK 3.5bn building. takes into account the existing and may have been assisted by the conclu- Three-year-old PTC specialises in expected numbers of patients treated ded VZP contract. It included a deal a second chance proton particle therapy. The pione- at the facility and helps to financially to terminate legal proceedings the ering treatment is far costlier than stabilise both PTC and its operator,” two parties were pursuing against Adéla Čabanová conventional radiotherapy but it can said Kristýna Dolínek Havligerová, each other. “That provides the bank deposit radiation doses aimed at disea- a spokesperson for Erste subsidiary with another important instrument of Prague’s private proton beam radiothe- sed tissue over a far narrower range. Česká spořitelna, speaking on behalf security,” Taťounová told E15. rapy clinic, which sprang to internati- British toddler King was successfully of Immorent. The problem of securing returns on onal attention during the 2014 Ashya treated at PTC after his parents, denied The new deal means loan repay- investments sunk into PTC has long King case, has taken a big step towards proton therapy by the UK National ments will be stretched to 2033. “The plagued the clinic and its creditors. financial stability. Five days after agre- Health Service, removed him from hos- bank has agreed favourable long-term “We searched long and hard for a vi- eing a standard contract with health pital and went abroad in search of the funding conditions primarily because able solution to the situation,” added insurer Všeobecná zdravotní pojišťovna treatment, sparking an international of the ever increasing volume of the- Dolínek Havligerová. (VZP), the Proton Centre (PTC) succe- manhunt. rapeutic care provided by the centre Continues on page 4 2/3 news Chinese doctors clear to practice Medical chamber’s series of firm objections get nowhere health alists in acupuncture, herbal Adéla Čabanová medicine and other Chinese methods – promoted as infor- othing now lies in the med by modern medicine but way of the vision which built on 2,500 years of Chine- Nsees the Czech Repub- se medical practice – work in lic becoming the centre of tra- Hradec Králové on the basis ditional Chinese medicine for of “temporary” exemptions, Central and Eastern . usually only given to foreign The Czech Medical Chamber specialists on short visits to the [ČLK] may be rather upset country. “The doctors at the at the prospect, but it has Fear of Hradec Králové hospital are failed with a whole litany of pseudoscience. practising according to heal- complaints over how Chinese Most Western th ministry permits which can practitioners are not subject physicians be issued for a period of one to standard conditions and have little faith year,” stated health minister have no ČLK membership, in traditional Svatopluk Němeček (Social screened qualifications or Chinese medicine Democrat). It is said that the exam passes and describe it Chinese practitioners are sub- to their name. as an alternative ject to the specialist oversight Traditional Chinese medi- medicine. But of Czech colleagues. cine doctors are, for instan- plenty of patients The path to a further ex- ce, thus clear to continue to can not praise it pansion of traditional Chinese practice at University Hospital Photo: Profimedia.cz enough medicine in Czech hospitals is Hradec Králové. “The ČLK clear. Seven Chinese doctors chamber has unfortunately, head Jan Mach wrote in the state prosecutors and the he- a planned clinic, stem from are to work at the new clinic in vain, exhausted all avai- chamber’s internal magazine. alth ministry. a cooperation between the being created at University lable legal means to bring Objections were raised with A project that runs a tra- university hospital, the health Hospital Hradec Králové with this matter in line with the le- regional government officials, ditional Chinese medicine ministry and private conglo- a financial injection of EUR gal code,” ČLK’s legal office the regional governor, police, outpatients department, and merate CEFC China. Speci- 10m from CEFC China.

UK court agrees Savov extradition Pavel Otto

The High Court of Justice in London has refused the ap- peal against extradition to the Czech Republic made by busi- nessman František Savov. He stands accused of tax evasion and the legalisation of the pro- ceeds of crime. A Westminster court initial- ly ruled for extradition a year ago, but Savov – who controls the Mladá fronta publishing house which, until earlier this year, included this publicati- on among its titles – took up

Photo: ČTK his right to appeal to a higher court. Ooh-aar, time to bet the farm on the Traktoriáda Police are pursuing Savov as A year is not quite a year for the village of Žebnice, near Pilsen, should the annual “Traktoriáda” – a tractor race up a hill – fail to take part of the “Octavian” case in place. Happily the 14th such contest (back)fired into life for the event’s many enthusiasts, a fair number of whom were ducking salvoes which 11 people are accused of of mud as farmers chucked in pulling heavy farm machinery for the day and instead fought their way up the treacherous, half-kilometre eliciting gains made from the il- course. Many of the tractors had been customised for the big occasion, while others were custom-made contraptions altogether legitimate overpayment of VAT amounting to CZK 770m. Minimum wage Have your say Helen Rodwell positions staked out Jana Havligerová A juridical challenge A minimum wage rise from the current monthly CZK 9,900 to CZK 11,000 has been proposed called Brexit by labour minister Michaela Marksová, with the backing Under the Article 50 process, Brexit is likely to have two of prime minister and fellow distinct parts to it. The first part is the process of extricating Social Democrat Bohuslav So- the UK from its status as a member state of the EU, which botka. But the proposal, made also has potentially significant implications for the remaining at a tripartite meeting of the 27 member states as well as the EU institutions. The second government, trade unions and part is how those exit discussions “take account of” the employers’ representatives, was framework for the UK’s future relationship with the EU. It is not to the other parties’liking that secondary part of the Brexit process that presents the (see Opinion, page 6). main challenges for UK lawyers and their clients.

The unions pushed for CZK Photo: Čtk The main challenge is that a large body of EU law will – 500 more and the employers, It must pay to work. One argument used in support of a higher post-Brexit – no longer apply in the three legal jurisdictions while content to see an increa- minimum wage is that it would reduce the number of people who of the UK (England & Wales, Scotland and Northern Ireland). se, were not minded to go any find it more rewarding to stay on welfare rather than get a job The process we are likely to see in addressing this challenge higher than CZK 10,600. The can perhaps best be viewed as equivalent to the process for employers’ view was suppor- behind her recommendation, petitive, they say. “Regularly the accession of new EU member states, which a number of ted by finance minister Andrej reasoning that a country like increasing the minimum wage CEE countries have relatively recent experience with. The UK Babiš (ANO), the billionaire the Czech Republic must not creates pressure to increase must decide what new national laws and new international owner, of course, of a business be at the “EU’s tail end” when pay in general,” said Vladimír agreements will be needed to fill the created legal vacuum. empire. The final decision will it comes to the minimum wage. Dlouhý, chairman of the Czech A key issue here will be how big that vacuum is and what rest with the cabinet. Since its The PM, meanwhile, asserts Chamber of Commerce. alternative laws are best suited to fill it. members are far from singing that it must pay to work. On the The government’s goal, spel- from the same hymn sheet, other hand, the employers insist led out in its program, is to lift If the UK wishes to maintain full access to the EU single getting there could well prove that they must keep costs un- the minimum wage to a level market, it will need to accept that it cannot modify certain a bumpy ride. der control. Hiking wages could equal to 40 percent of the coun- national laws, at least not in substantive terms. The closest Marksová is standing firmly make some industries uncom- try’s average salary. analogies are to the bilateral (e.g. Swiss) or multilateral (e.g. European Economic Area – EEA) arrangements. The UK will also have to separately negotiate new trading deals with the 53 markets with which the EU has standing Free Trade Agreements. With a strong presence across the EU and globally, CMS is very well placed to help clients navigate their way through these challenging times. We have already seen a range of new work arising from Brexit – from companies seeking advice on long-term contracts, the terms of which may straddle Brexit, to companies looking to relocate from the UK to elsewhere in Europe. In any case, we would not expect to see a change from the use of English law as a governing law for cross- border international contracts – it was used as a basis for international contracting well before the EU came into being and there is continued use of it internationally well beyond the scope of the EU. Our expectation is that any new UK trading relationship with the EU is likely to take significantly more than two years to arrange and complete. The Author is Managing Partner of the Prague office of global law firm CMS Cameron McKenna Photo: ČTK E15 weekly, economic and business news magazine | www.e15.cz Medieval throwbacks used in castle keep restoration Igor Záruba, Executive Editor, [email protected]; Marian Hronek, Editor, [email protected] | Translation: TextMasters, [email protected] A tour with commentary was organised by the National Heritage Institute to provide an up Contact: Adéla Nová, Secretary | Call (+420) 225 977 668 close view of the restoration of the medieval “Jakobínka” keep, part of Rožmberk nad Vltavou Postal address: Komunardů 1584/42, 170 00 Praha 7 | Published CN Invest a. s., castle, located on a promontory by the river Vltava in South Bohemia. Restoration work began Pařížská 130/26, 110 00 Praha 1 Josefov, IČ 04312945 in earnest last October using medieval techniques: the timber scaffolding was hand-made from Advertising: Šárka Kamarýtová, Sales Manager, [email protected] Production: [email protected] | Distribution: [email protected] trees felled nearby. Apprentice carpenters from as far afield as France ookt part in the project Registration: E 21420 E15 weekly, ISSN 2464-711X under the EU’s Erasmus program Reprints & Permissions: The Publisher will consider requests for reprints or any other reproduction | Printed by EuRoPRINT a. s. 4/5 business Carun aspires to global ‘hempire’ Hemp pharma firm brings its expansion overseas to the US investment tomers. Its window display, Stabla said the pharmacy David Vagaday dominated by a logo with the would have been in operati- familiar leaves of the hemp on already were it not for im- anama City Beach on plant, is guaranteed to draw portation red tape. “For hemp the Gulf of Mexico, attention. “To have hemp lea- there are stricter regulations, PFlorida, New York and ves painted on your storefront meaning more paperwork. Dallas, Texas. All three loca- is rather unusual in Ameri- The opening should occur in tions feature prominently in ca. They attract attention August,” he added. The opera- Czech company Carun Phar- elsewhere in the world, and tion in Florida is to comprise macy’s expansion plan. First it will certainly be the case of the shop and a large sto- up should be the Floridian city. there,” said Stabla. rage unit. The construction “It is where we are opening An American News Chan- and equipment costs, which our first hemp pharmacy in nel 7 TV report told how peo- will be paid by the franchi- the United States, a country to ple were taking selfie pictures see, are in the range of tens which we have been exporting posed in front of the store and of thousands of dollars. our products. If the outlet pro- were inquiring what the outlet Carun Pharmacy produces ves itself, we will want during was all about. “They are curi- its hemp cosmetics and food- the remainder of this year to ous and so we simply tell them stuffs in the Czech Republic. pursue the opening of further the facts,” Bortl recounted in Its Czech network extends stores, for example in New the report. The key point is to 14 outlets. The expansion York and Dallas. We are also that Carun’s manufactured abroad began last year. One aiming for China,” Jiří Stabla, creams and oils are produced outlet is found in London, Carun’s CEO told E15.cz. from a technical hemp plant in while there are seven in Po- Like in other cases, the Pa- which the principal psycho- land. Apart from the US, nama City Beach pharmacy active Tetrahydrocannabinol the firm is to also open up in will function as a franchise. (THC) constituent, or “can- Slovakia and it has plans to Located in a large shopping nabinoid”, of cannabis is sup- achieve a retail operation in centre, it will be managed by pressed, making sales entirely Germany. Carun’s business Photo: E15, Michael Tomeš construction entrepreneur legal. It is from other types of plan envisages additional Legal high for the boardroom. In 2014, prior to its move of Czech origin Patrik Bortl. cannabis sativa plant that the work to strengthen the brand abroad, Carun Pharmacy, managed revenues of more than CZK The outlet shouldn’t suffer so-called “soft drugs” marijua- on markets where it already 9m and a net profit of CZK 3.7m. The firm’s owners said that any shortage of potential cus- na and hashish are made. has a presence. last year’s revenues amounted to tens of millions of crowns

Banks back the proton prize

Continued from page 1 agreement while acting as the insurer’s appointed receiver. The Prague 8 facility’s mana- The deal promised that PTC gement has never publicly ad- would receive a billion crowns mitted to having any weighty annually from VZP for 15 years. difficulties, but its 2014 finan- The 2014 financial statement cial statement outlined a rather lists yearly revenues of a mere strained situation. It stated the CZK 160m. However, the num- company’s further long-term ber of patients estimated as existence required marked a base for the payments was increases in business activi- 1,650 a year, a grossly exagge- ty and revenue. The centre rated figure in experts’ eyes. finished fiscal year 2014 with Various expert statements a CZK 525m loss. As early as claim the number of patients 2013, Immorent was speaking nationwide suitable for proton of “significant uncertainty” therapy is in the hundreds. The in relation to PTC’s ability to centre thus seeks clients from

Photo: Profimedia.cz secure sufficient revenue to abroad and strives to win pa- honour leasing obligations. tients ready to pay treatment Simulators to put train drivers through worst nightmares Until the clinic and VZP costs themselves. A Czech Simulated train driving presenting sudden-emergency scenarios are to feature in the training struck their agreement, the News Agency survey found of Czech Railways drivers. Almost exactly a year on from the fatal Pendolino passenger train two parties were arguing over seven Czech health insurers accident at Studénka in Moravia-Silesia, the national carrier has written out a tender for the a deal to enter into a future covered 454 patients’ proton delivery of two special computer simulators, worth around CZK 40m. The simulators must be contract, signed in 2006 by costs between 2013 and 2015, able to confront drivers with unexpected events such as suicidal persons jumping on tracks, Antonín Pečenka. Pečenka is spending CZK 278m. PTC onrushing trains that appear on the wrong track and road vehicles obstructing the line facing trial accused of an abu- plans to treat over 1,000 pati- se of authority by signing the ents this year. Tenth of surveyed firms up and down

Milan Poulíček anxious over Brexit Director-general, Czech Customs Jaroslav Bukovský Administration

The UK’s planned exit from the The new customs chief is tasked with stabilising European Union has not yet the state body following his predecessor’s resigna- made any real impact on the tion and several deputies’ exits. He’s also expec- business of Czech exporters. ted to streamline the collection of duties and taxes They have not even been par- and to more aggressively fight illegal betting. ticularly affected by the eight percent depreciation of the British pound sterling. Jan van Geet Every tenth domestic small CEO, VGP Group and medium sized enterprise (SME) is, however, anxious The Belgium-HQ’d property developer – a Czech that the British Brexit from logistics and industrial parks market leader – has the EU will eventually have pulled off one of the biggest 2016 transactions to harmful consequences for Photo: Profimedia.cz date. Half of the business has been sold to form their business. And almost tainty has most grown in terms end leave the EU. “I see the a JV worth more than EUR500m with property each second such enterprise of decisions over investments probability of Britain staying investment and asset manager German-French believes the Czech economy ahead,” said ČSOB chief econo- in the bloc at about 30 percent. Allianz Real Estate. will not survive the Brexit wi- mist Martin Kupka. From com- While in the event of an exit thout suffering appreciable paring the latest research with conditions could be arranged damage. The conclusions stem a survey completed before the so that practically nothing Raúl Castro from research conducted by UK referendum vote on whe- changes,” remarked Radek Cuban president ČSOB bank among 500 SMEs. ther to stay in the EU, it appears Jakubský, executive director The bank’s survey also found that the number of businesses of health equipment company Cuba’s flagship sea transport investment in the that 28 of the quizzed firms had planning to raise investment Proma Reha. Presently, around Port of Mariel has fallen behind schedule despite plans to abandon investments this year has fallen by around one-tenth of the firm’s output all efforts. The port looks set to miss out on in relation to the British with- one-quarter. goes to the UK. Its trade with transshipment traffic headed for the expanded drawal from Brussels. Some of the business re- British buyers is carried out Panama Canal. “Brexit has lightly cooled spondents determined that in euros, meaning the Brexit the investment appetite among there remained a big chance events have not to date had any Czech businesspeople. Uncer- that the UK would not in the repercussions. Robert Chvátal Boss, Sazka

Using various retail networks and post offices he’s managed to attain two and a half times more betting spots than achieved during Sazka’s 1995- 2011 “Hušák era”.

Lubomír Fojtů Director, Czech Waterways Directorate

The directorate has taken on a private operator to manage the Hluboká nad Vltavou river port. The prices of the neighbouring port on the Vltava river, run by state firm Povodí Vltavy [Vltava River Basin Company], are half as expensive.

Carsten Spohr CEO, Lufthansa

The largest German airline has now even turned to online marketplace Airbnb to find new bookings.

Photo: Cinemart Its ills were shown up by first-half revenues falling Goebbels’ mistress biopic top draw EUR 0.4bn year on year to EUR 15bn. in best box office for 23 years Czech cinema audiences amounted to more than seven million viewers in the first half of the year, Tim Cook representing year on year growth of 12 percent and amounting to the best box office performance CEO, Apple Inc. since 1993. Among the three most popular films were two Czech films. In first place was Lída Baarová [English title: Devil’s Mistress], a biopic on the 1930s Czech actress and lover of Nazi propaganda The IT giant saw its second successive quarterly minister Joseph Goebbels. The third most watched film was the Czech comedy Teorie tygra [Tiger revenue decline, the latest drop recorded Theory] about a man resolved to win back control of his life. Second place was taken by American at 27 percent. Its iPhone is enduring its first ever action adventure comedy Deadpool prolonged sales slump. 6/7 opinion

Wages aren’t Jana Havligerová’s diary working for the poor Imagine all the (dull) Labour and mana- people gement represen- Responding to the mass committed bribery. If the murder in Munich, Václav court agrees then we can tatives have failed Klaus Jr., son of the former assume that this will set president, concluded that a precedent for other similar to reach agree- it’s now time for the Czech cases. For instance: Prague ment on a mini- Republic to leave the Eu- mayor Adriana Krnáčová ropean Union. Because, as (ANO) created new posts mum wage hike. Klaus wrote on his Facebook at City Hall in order to hold page, murders are taking together the city’s governing A debate has raged place in neighbouring coun- coalition; add to that PM tries, where it is no longer Bohuslav Sobotka (Social

about whether this Photo: ČTK safe to travel by train; while Democrat), who’s presumab- bars and restaurants are ly to be charged with extor- country has beco- rely on welfare. And the bur- Regional minimum wage closed in Munich as people tion, given that he pushed me a de facto low- den for the state represented breakdowns offer another cower at home in fear. fellow party MP Pavlína by such welfare (including phe- perspective. The lowest share Consequently, Klaus says he Nytrová (in hot water over wage assembly line nomena such as payouts for – almost 20 percent – is paid sees no other solution than: a homophobic outburst) to exorbitant rents at rooming out in Prague, the location with “Leave the European Union not run in future elections. houses), is ultimately absorbed the highest average wages nati- and firmly control our own And so on, and so on... by taxpayers . onally. In terms of sectors, the borders.” How wonderful. Arguments against upping lowest paid are those in retail, Let’s all just lock ourselves The process of reorganising Tereza the minimum wage usually administration and services. behind our borders, stop the police service continues Zavadilová centre on the idea that the In all three, a minimum wage travelling anywhere, and sit to cause a stir. Justice mi- very people seeking higher topped up with some kind of at home trembling under nister Robert Pelikán (ANO), salaries will actually end up cash in hand bonus is the norm our blankets... who previously threatened number of irrefutable losing out – because business (finance minister Andrej Ba- to resign over the process, arguments are made in owners won’t be able to absorb biš (ANO) wants to rein in the Former PM Petr Nečas is will not being doing so after Afavour of a hike: from the costs and will lay people grey economy via mandatory on his way to the court dock all. For Pelikán now says he 2007 to 2012, the minimum off. But no reputable studies electronic till receipts [EET]. (again), this time in con- views himself as a guarantor wage did not rise at all. This have shown a direct correla- An aim is to force such undec- nection with a 2012 affair of the independence of state year, the Czech economy has tion between minimum wage lared incomes into the light). in which three fellow Civic prosecutors – and so he has been growing at its fastest rate rises and layoffs. Another For a long time, the public Democrat [ODS] MPs were no choice but to remain in since the 2008 economic cri- often heard contention sug- debate on this issue has tended allegedly promised posts the cabinet. What a sacrifice. sis. But the nation still ranks gests higher wages at the very to rigorously defend business in exchange for resigning Meanwhile, in response to from political office. This is the question of which animal said to have smoothed the he would like to be, former For a long time, the public debate on this way for the parliamentary anti-organised crime unit approval of a government [ÚOOZ] chief Robert Šlachta issue has tended to rigorously defend “stabilisation package” of told Lidové noviny he would tax reforms. Olomouc-based like to be a dog living with business owners and employers prosecutors claim Nečas “good people”. Woof! near the bottom in terms of its bottom create pressure for owners and employers, just so minimum wage both among other wages to go up too. But said experts can avoid risking developed and post-communist from a macroeconomic point sounding like flag-waving com- joke countries (even Turkey goes of view that would actually be mies. A welcome development higher). Household consumpti- desirable right now. would be bringing some balan- on represents less than a half of The makeup of those Czechs ce back into the debate. Busi- Czech GDP, and this share fell relying on a minimum wage ness owners have no shortage further during the crisis. The perfectly illustrates the other- of strong advocates: for exam- country’s minimum wage does wise largely egalitarian Czech ple the Czech National Bank, not even represent 40 percent Republic’s social problems. which has spent three years of the country’s average wage, Women, younger employees weakening the crown to help even though the poverty line and the disabled are mostly exporters. But society’s poorest is drawn at 60 percent of the found on the lowest wage scale are paying the price for all this. average wage. rungs. And self-employed wo- And where poverty exists, dis- Economics experts incre- men, along with women pensi- content and alienation fester. asingly refer to the “working oners, are the two groups most Better wages for the working poor”. The phrase perfectly at risk of poverty. Meanwhile, poor are a way to begin to ad- underscores how even people unskilled labourers always dress such problems. working full time are unable to have the weakest voice in any The author is the “I’m an expert in crisis management. break the poverty barrier, so debate over wages. editor in-chief at E15 magazine I’ve been married for 25 years and raised 3 kids!” Brexit and the City: What next? It’s been rather instantly deliver, the City kept financial centre, assuming ne- the ship steady and took a san- gotiations maintain some form a while since the guine view of the situation – af- of Single Market access. Con- ter all, there is no telling how sequently, key City institutions British plumped the negotiations will actually will retain their large London pan out. presence. But something of for the EU exit, but Most of the financial press, a rebalancing will take place, policymakers, eco- however, seem to agree on most likely in the form of hiring three potential outcomes in freezes and stronger drives to nomists and wor- the long run. The first and best attract talent to other office outcome is that the City of Lon- locations like Frankfurt, Paris kers alike are still don will pretty much stay as or Dublin. it is, on top of morphing into Third best is a substantial scratching their something of a European take City downsizing. The subse- on Singapore. Utilising its qua- quent combined loss of finan- Photo: Reuters heads over the lified workforce, advantageous cial market passporting rights future of London’s was a firm ‘Remainer’, but of the Tories some breathing spa- time zone and less regulated and inadequate foreign direct course the Brexiters achieved ce ahead of negotiations that environment, London could investment would then doub- financial district a largely unexpected triumph. will take place before the Brexit develop as an offshore gateway tlessly also affect the wider UK Not that that triumph has brou- is triggered with Article 50. La- for inbound Asian investment economy. Michael Zámečník ght clarity. Several weeks later, bour was far less fortunate. Its and Chinese renminbi trading. A caveat. All this is only spe- the planned Brexit remains im- leadership contest may push it The Swiss bankers’ association culation. Nothing specific has When UK voters went to the mensely contentious and there into arguably its most destruc- has even proposed a strategic been tabled yet, and nothing is polls for the EU In or Out is little certainty over where the tive schism in a generation. ‘F4’ alliance between Switzer- likely to surface until after the referendum they knew their British are headed. Economically, the story gets land, London, Hong Kong and summer break. At least the sun vote might help decide their Politically, PM David Came- far more interesting. Despite Singapore. has been shining during days of country’s direction for gene- ron’s swift resignation to make the doom and gloom that some The second best outcome late, but even that is a bit too rations. Your correspondent way for Theresa May allowed predicted the Leave vote would sees London remaining a global fond of making an exit.

256373/11 advertising

THE ONLY ENGLISH LANGUAGE BUSINESS WEEKLY IN THE CZECH REPUBLIC 8/9 top story Photos: E15 Michael Tomeš Prague’s Dlouhá rivalling legendary Stodolní nce simply the haunt of late-night revellers, Prague’s Dlouhá street has been Ogiven a complete makeover thanks to investmentsw made by media types, American entrepreneurs and seasoned restaurateurs. New pubs and bars seem to pop up each and every day Daniel Novák location number one,” says Jan Voslář, a retail expert at the Cushman & Wake- For over two decades, Dlouhá’s only field consultancy. According to him, the evening attraction was more or less central street’s advantages include easy live music venue Roxy. But today the accessibility and rents for pub and bar thoroughfare – which connects Old premises that are lower than those of Town Square’s northern corner with the prestigious Na Příkopě boulevard Revoluční avenue, north of Náměstí just off Wenceslas Square. Republiky – is very much a destination Dlouhá’s transformation was set in for a beer, shot or a cocktail. In fact, motion in 2005 by the now renowned Dlouhá is by now drawing comparisons Harley’s Bar at number 18. The peop- to Ostrava’s Stodolní street, the legen- le behind its success include Tomáš dary heart of the northeastern city’s Tesner, a former top manager at Pil- entertainment district. However, unlike sen’s Plzeňský Prazdroj brewery. Stodolní, Dlouhá also offers plenty to The success of Harley’s was followed connoisseurs of food. four years later by that of Lokál, a big beer venue belonging to the Ambien- Pulling power te restaurant chain owned by Tomáš “Restaurant and catering business Karpíšek. More businesses followed operators state that Dlouhá is for them on its tail. Back in time. James Dean restaurant is themed with authentic US diner style furniture which is inspired by Chevrolet Bel Air’s armchairs from 1952

Gastro avenue is born Tales brewery. One partner is Martin opening and we see our customer num- 1,000 square metres it will even exceed “The greater the number of good quali- Nejedlý, co-owner of consulting firm bers are climbing steadily,” Konhefr the floor area of the Lokál watering ty places in the vicinity the greater the Fincentrum. told E15. His project partners include hole. Construction work is to begin concentration of knowledgeable people One of Dlouhá’s most recent new- Tomáš Kačena, CEO of Extra Online next year and be over by 2018. Through who appreciate fine food and drinks,” comers cropped up at number 14. The Media, the publisher of tabloid website Cushman & Wakefield, the owner is remarks Šárka Hamanová, a spoke- owners of Food Story opted for a single Extra.cz, and Pavel Vondráček, former currently negotiating with parties in- sperson for Ambiente, responding to roof over a pub with a wide selection of longstanding chief editor of Maxim. terested in operating the beerhouse. a question about competition. beers, a grocery store “with a story”, The reconstructed property will also Prague Beer Museum at number a café and a bistro. Co-owner Jiří Kon- Queuing up to get in the picture include restaurant. 46 in Dlouhá has wagered its success hefr says the business is performing More changes are in the pipeline for The fabled Roxy, of course, remains on offering beers from a range of well. the premises covering numbers 11 to a powerful magnet when it comes to microbreweries. Its owner is North Dlouhá, as a “gastro avenue”, has an 15. Reality firm Amádeus Real, owned Dlouhá. Opened more than a quarter of American businessman Jose-Manuel ideal position in the very heart of Pra- by Václav Klán, plans to reconstruct a century ago, it underwent an extensive Padilla. Along with a few partners, Pa- gue. “We succeeded in securing a good the historical building at the site and refurbishment in 2010 at a cost of seve- dilla has also founded the small Two number of patrons within six months of turn part of it into a very large pub – at ral hundred millions of crowns.

Restaurant and catering business operators state that Dlouhá is for them location number one 10/11 face to face Ladislav kučera Graduates familiar with the world of work are in short supply Photos: Michael Tomeš ages for new hires are set to increase According to Czech Statistical Office hours... Many personnel experts are [ČSÚ] data we have more than 120,000 now looking into the issue of the attrac- by tens of percent, suggests Ladislav available job openings. We last saw tiveness of the public sector for young such a large volume in 2008, before respondents. We did not use to see large Kučera, head of the Czech branch of the financial crisis. It means that the numbers of young people going to work W market is very candidate-driven. So it in public administration. The reason personnel firm Hays. And companies stand isn’t the case that a candidate gets one was because such work is known to be offer and is happy to take that so as to rigidly a nine-to-five affair. willing to embrace more flexible working hours feed their family. Now they are able to make a selection, not just on the basis of What does that mean for employers? remuneration levels, but also based on The image of a company matters far Adéla Čabanová How are companies addressing this what a given company offers as a whole, more than ever before. Candidates want issue? and its future prospects. to be able to associate themselves with Is it still the case that, in comparison They are beginning to offer additional something. Which is why corporations with neighbouring countries, the Czech benefits, both for existing employees – So are the expectations of applicants are spending large sums on marketing. Republic’s labour market has a compe- to help retain them – and also to help changing? Before no-one gave much thought to the titive advantage? lure new ones. Add to that the issue The newly ascendant generation is idea of making a company appear at- Investors continue to look in our of a generational change. The new ge- connected with a far greater emphasis tractive in the eyes of new talent. Today, direction because we offer high-quality neration entering the labour market placed on harmonising one’s personal companies can easily obtain finances, labour for relatively amenable wage values entirely different benefits than and professional life. Young candida- technologies are available – but what levels. However, during the last 18 the outgoing one. Even financial remu- tes are far more interested in being will be far more crucial to success is months we have observed an extreme neration is beginning to increase. So able to have time left for their personal talent. pick-up in the labour market. We are far, the increase has been in the order hobbies. As part of our most recent encountering large numbers of requests of a few percentage points. But I believe pay survey we asked job-seeking re- It must be difficult for some firms to for qualified candidates. The question that this year we will see that go up to spondents about the kind of benefits adapt to the idea that young people now is not financial remuneration but tens of percent for new contracts. they would most value. The top four don’t want to do as much overtime. rather whether companies are even answers were dominated by the issue We also put the question of benefits able to find the staff that they are How many available positions are the- of workplace flexibility – being able to the employers with whom we work. looking for. re? to work from home and flexible work That means companies spanning 12 various branches from construction to it is difficult to adjust away from those has a notable impact, for example, on manufacturing. In total, 75 percent of things to which we are accustomed. the kind of entry-level positions we can Ladislav Kučera (40) them said that workplace flexibility is create for people. At this time, however, Head of personnel consultancy now among the benefits they offer. Even Are people over fifty still viewed as be- we are tending to deter people in all Hays Czech Republic since January those traditional firms, which previous- ing older employees, given the increa- manner of ways. 2015. Previously worked as a regi- ly sought to have their staff sat in the sing lifespan of the population? onal manager at ManpowerGroup, office for a given number of hours, are An ageing population is a key factor. All So foreigners could mainly find work in and before that served at hotel now starting to become flexible. Those the while our country is not enacting places where Czech-language skills are firms Radisson and IHG. Studied in who seek talent have no other choice. any kind of active migration policy. In not required? the US. His interests include sport And I don’t just mean graduates. A si- fact the converse is true, and the mood As a nation we tend to be quite inflexi- – primarily golf. milar situation is found with mothers here is more than hysterical. ble as far as language is concerned. Our returning from maternity leave. They demands for Czech-language skills end represent a huge fountain of know-how If the mood of the population changes, up being quite a limiting factor. likelihood that such activities will be – they are usually people with experi- along with the political climate, is the- relocated, for example to India. But it ence, and who long to work. But they re a chance of luring qualified labour In which fields are there the greatest has led to problems in terms of finding need flexibility, because they want to to the Czech Republic? labour shortages? staff capable not only of the service harmonise work and family life. Certainly. And that is detectable at Definitely information technology, chie- aspect, but also capable of performing shared services centres. This segment fly software development. Shortages are in the appropriate language. Is it true that graduates want to do already employs up to 70,000 people, being seen, for example, in managers of their work “from the beach” or is that which is no small number. And a third manufacturing quality. Each year the So who works in these shared services just a myth? of these, perhaps more, are foreigners. shared services centre sector grows by centres? That is something of an exaggeration. We have a scenic and safe country. If we tens of percent. Existing centres are The shared service centres started out Another matter is what graduates can offer good work, then we can become being expanded. What were formerly covering the field of accounting. Interna- offer to the market. an interesting destination. Not every- basic transaction operations are now tional companies such as DHL, Siemens one wants to go into the hypercom- being expanded to include more com- and others, decided to concentrate cer- So do the expectations of graduates petitive environment of the Western plex services. That is great for us. The tain services in a single location, for one match what they can actually offer? countries. An active immigration policy more complicated the task, the less the in order to reduce costs, and secondly to Society is basically saying that you need a university degree. Even though that then ends up degrading this very title. It The market is candidate-driven. It isn’t the case that ceases to be a way to demarcate quality. We have two groups of graduates, both a candidate receives one offer and is glad to be able to feed essentially different. The first contains very active young people, who make his family. And candidates are not just choosing based on use of company internships, both at home and abroad. That way they im- wages, but also according to a firm‘s overall prospects prove their language skills, not in the academic sense, but rather in practical create a unified set of procedures. Staff day-to-day usage. The size of this group require not just an active knowledge of is decreasing. In contrast, we are see- English, but naturally also the language ing an increase in the size of another of the country for which they provide the graduate group – those aged between service. At present the greatest short- 26 and 28, who have a degree but who falls are found with regards to English have never worked. Nor do they even and German. possess any basic working habits. They can barely even conceive the import of That seems surprising... carrying out a specific job. They arrive I was also surprised by this at the outset. with such huge expectations that the- Right away we could employ dozens, se cannot and could not be fulfilled. If maybe hundreds, of German-speaking employers see the CV of a 28-year-old accountants. We have also been looking who has never worked, and is trying for Hebrew, various Arabic languages, to get a job for the first time, then that and also the languages of the Northern employer is going to think twice about countries. hiring someone like that. As a personnel agency do you have How does today’s near-zero unemploy- more work to do when companies are ment help experienced workers? Pe- having difficulties, as is the case now, ople over 50 used to encounter major in finding enough people? problems finding work. Our work has changed radically. When They did – and that was certainly not there were a sufficient number of can- good. This is changing at a fast rate. didates and we had to battle for com- International corporations have norms missions, then we used to search our and processes already in place for how databases to find the most appropriate to select employees. They don’t discri- match for a given opening. Today we minate. But that doesn’t mean that all is direct such searches for companies and rosy. When we published our surveys, also try to find candidates via social I received feedback from several men networks and interest groups. Most are and women from the Ostrava and Kar- already in employment at a given time, vín regions voicing objections to what which complicates and prolongs the we had presented. They wanted to point recruitment process. These are good out that people of near retirement age times for companies such as ours. We encounter problems finding work. Also should make the most of it while it lasts. crucial is the expectations that older We already know that our labour mar- job-seekers have for work. Sometimes ket is at a make-or-break point. 12/13 special report Kłodzko: Prague in miniature

łodzko’s marketplaces served as a major draw during the 1990s. their depressing atmosphere of austere gloom. It is a highly atypical mix of uti- But now is the perfect time to cast off the hunt for cheap consumer litarian function on the one hand and militaristic elegance on the other. Long junk and instead visit this picturesque Polish town, often referred brick corridors, arched at the ceiling; K cramped and musty. During the Second to as “Little Prague” for its similarity to our capital World War, some of the fortress interiors here were used by German firm AEG to make submarine radio receivers for Jakub Hloušek in a huge 40 kilometre-long network of mostly built without any kind decor. The the Nazis. After the Germans came the defensive tunnels. The Prussians played fortress then became a key pillar in a de- Polish army, which added an industrial A huge fortress which looms majestically the greatest role in the creation of the fensive chain of fortifications spread “facelift” seen in the pipes of an air- above the historical centre of Kłodzko current appearance of the fortress. Once along the Kłodzko Valley. Some internal conditioning system and other metallic (Kladsko in Czech) serves as a perfect part of Bohemia, the Kłodzko Land area areas of the fortress have undergone military hardware. symbol of why this western Polish town was snatched from Hapsburg rule by the restoration and today house a number of I climb up out of the fortress cellars represents a perfect over-the-border Prussians during the Silesian Wars of the interesting exhibits. Others, meanwhile, and into the area around Kłodzko castle. trip for Czechs. Today, the fortress is mid-18th century. Even though the final have been left to the ravages of time. The main square and surrounding areas among the most interesting examples fortress work was conducted at the end bear the hallmarks of a growing tourist of Polish military architecture. Despite of the baroque era, no reasons existed Immersion into history industry. Today, visitors regularly ex- the imposing visage of the fortress, much for any kind of extravagant ornamental I walk through the endlessly long, ar- plore both the aboveground and un- of its structure is found below ground design. Even the fortress’ gates were ched underground tunnels, infected by derground marvels of this Polish town. Next up are the grounds of the gothic of war and disease spanning the 17th and Church of Our Lady of the Rosary, si- 18th centuries. For something a little tuated right next to the famous Gothic more noble, there are the region’s many Bridge – a kind of Charles Bridge in spa centres. Even the smaller spas, such miniature. Despite the tourists, its still as that found in the charming town of possible to lose oneself – especially du- Polanica-Zdrój, feature great facilities ring a rain shower – in a magical world and, as a bonus, great mountain bike of Middle Age architecture. Slippery trails. Meanwhile, the spiritual side is stone-tiled pavements, framed by a line catered for via countless pilgrimage si- of metal lanterns, disappear downwards tes. One such example is the small holy amidst the dark and mysterious passa- town of Bardo, situated on the banks of ges. Stone house signs emerge amidst the Eastern Neisse river. Its 11th century the dingy, soot-covered facades, along chapel has served as a place to venerate with blackened entryway portals and the “Enthroned Madonna” (Virgin Mary) decorated window jambs. since the 13th century. And the northern part of the valley includes the village of Exploring Kłodzko Valley Henryków (Jindřichov) which features The Kłodzko Valley area also contains a monumental Cistercian monastery a number of unexpected marvels. One complex. can start out just beyond the Czech town of Náchod in the Polish village of Taken from the magazine Czermna (Čermná). The late 18th cen- tury Skull Chapel has an eerie interior Książ castle. Situated in the city of Wałbrzych, this key regional tourist decorated with the bones of the victims attraction is the third largest castle in Poland Photos: Jakub Hloušek

Kłodzko fortress. Only from the air does the true vastness of this fortress become evident. Presently, visitors can only gain access to about ten percent of its grounds 14/15 food

Lívance with yoghurt Breakfast at and fruit 6 servings preparation: 40 minutes the countryhouse 250 g plain flour 400 ml semi-skimmed milk n idyllic 80 g butter 2 egg yolks summer 1 vanilla sugar retreat from 10 g yeast A pinch of salt the city heat should 1 teaspoon lemon zest mean a country rapeseed oil table piled high with to finish: 300 g raspberries many traditional 50 g icing sugar + for delights. Not to be sprinkling 250 g full fat farmer’s forgotten are the yoghurt lívance, something 300 g blueberries in between the French crepe and the American pancake

David Skokan

Sieve the flour. Moderately warm the milk and dissolve the butter in it. Pour the li- quid into a mixing bowl and mix in the beaten yolks, vanilla sugar, salt and crumbled ye- ast, and, after a short while, the lemon zest and flour. Whisk the smooth thick dough and leave it to rise in a warm place without a draught. Grease the griddle with the oil, heat it and fry both sides of the lívance to a golden brown. Place 100 g of the raspberries with the icing sugar in a saucepan. Add 50 ml of water and boil. Press throu- gh a sieve to achieve a smooth sauce. Serve the lívance with the raspberry sauce, yoghurt and blueberries. Tip: In place of sugar, you can sweeten the lívance with honey, and, following the French style, you can add la- vender or rosemary to taste.

Taken from the magazine Photo: Nina Novák society No fence sitting from airport staff during volunteers' day The Letiště Praha [Prague Airport] company arranged a volunteers’ day du- ring which some of its workforce were dispatched to paint a fence around the extensive premises of the Dědina Long-stay Rehabilitation and Requalificati- on Centre for the Blind. The facility assists blind people and people suffering serious sight disabilities with their integration into society. The event was topped off with an evening of guitar songs around the fire Photo: Zdeněk Sluka Fundraiser amounts to a punishing time for golf players’ wallets Some 130,600 crowns, the best total so far this year, was raised by the fourth golf gathering of the Pomozte dětem s Českým teplem 2016 [Help Children with the Czech Heat Company 2016] series, held at Ypsilon Golf Resort Liberec. Exactly that amount was paid in “fines” for both good and bad shots by the 60players who participated. Thanks to the tournaments held this year so far, the fundraising initiative already has more than half a million crowns on its account. Pictured is České teplo executive director Václav Viaček handing a symbolic cheque to Pomozte

dětem fundraising manager Jana Vožechová Photo: Český aeroholding

advertising Get your subscription!

You can subscribe securely via e-mail Use the e-mail address [email protected], State your name and delivery

1 2 6 address. Use the code WEEK 0816 Spring chicken graduates 0 Monday, 1 August 2016 l www.e15.cz

Issue 126 l newsstand price CZK 24/¤ 1 Companies beset by 4 0 unworldly job candidates, as the message subject says Hays chief

FACE TO FACE pages 10–11

771803 45431 9 ‘Little Prague’ Remind you of some place? You can also subscribe Daytrippers drawn to Poland’s Full-year subscription: picturesque Kłodzko SPECIAL REPORT pages 12–13 online at our website CZK 650 and as a gift www.predplatne.cz Banks back you will receive a voucher To subscribe on the worth CZK 1 990 a toll-free number, proton The shopping call 800 248 248

voucher can be used Profimedia.cz prize Photo: for the product offers Simply call to provide your and the proton therapy deployment Immorent and PTC have agreed debt maturi- success worldwide,” said PTC director eded in striking a new agreement with long-term leasing and a Iva Taťounová. Financially stretched creditor Immorent, an Erste financial ty extension. “We perceive the agree- The negotiations with Immorent personal details and cite the group member. Immorent provided ment as a positive development as it PTC cancer treatment may have been assisted by the conclu-deal at all T. M. Lewin loan finance for constructing the cli- takes into account the existing and ded VZP contract. It included a nic’s CZK 3.5bn building. expected numbers of patients treated to terminate legal proceedings the facility has been given Three-year-old PTC specialises in at the facility and helps to financially two parties were pursuing against code WEEK 0816 a second chance proton particle therapy. The pione- stabilise both PTC and its operator,” each other. “That provides the bank ering treatment is far costlier than said Kristýna Dolínek Havligerová, with another important instrument of stores located in the conventional radiotherapy but it can a spokesperson for Erste subsidiary Adéla Čabanová security,” Taťounová told E15. deposit radiation doses aimed at disea- Česká spořitelna, speaking on behalf far narrower range. The problem of securing returns on sed tissue over a of Immorent. investments sunk into PTC has long Prague's private proton beam radiothe- British toddler King was successfully The new deal means loan repay- rapy clinic, which sprang to internati- plagued the clinic and its creditors. treated at PTC after his parents, denied ments will be stretched to 2033. “The “We searched long and hard for a vi- Czech Republic until onal attention during the 2014 Ashya big step towards proton therapy by the UK National bank has agreed favourable long-term able solution to the situation,” added King case, has taken a Health Service, removed him from hos- funding conditions primarily because financial stability. Five days after agre- Dolínek Havligerová. This subscription offer is valid pital and went abroad in search of the Continues on page 4 standard contract with health of the ever increasing volume of the- eing a treatment, sparking an international rapeutic care provided by the centre insurer Všeobecná zdravotní pojišťovna manhunt. 31 December 2016. (VZP), the Proton Centre (PTC) succe- until 4 September 2016

28.7.2016 11:35:06

01-04-05 E15W 126.indd 1

This offer is available to new subscribers only and will be extended while stocks last. In the event of stocks being exhausted, the publisher reserves the right to provide a substitute gift. Gifts are forwarded within six weeks from the date of the reception of the subscription payment. Subscribers acknowledge that their subscription cannot be cancelled for a period of one year from the date of the subscription order being made. Subscribers further acknowledge that their subscription will be automatically extended for another subscription period unless they have expressed their explicit wish to terminate their subscription by means of a written notification forwarded to the correspondence address of CN Invest a. s. at Komunardů 1584/42, 170 00 Praha 7. By placing a subscription order, subscribers express their assent with, and undertake to follow, these terms and conditions of delivery. By placing a subscription order, subscribers also grant their consent to the publisher entering all the personal information they have provided (hereinafter “personal data”) into a database – with CN Invest a. s., seated at Pařížská 130/26, Josefov, 110 00 Praha 1, acting as the administrator – and to the publisher subsequently using such personal data for the purposes of offering products and services as well as for the forwarding of commercial information via electronic and printed means in accordance with Act No. 480/2004 of the Czech legislative code. Such consent is granted for an indefinite period, i.e. until it is revoked. Subscribers also grant their consent to the processing of personal data through third parties authorised by the administrator. Subscribers acknowledge their rights as stipulated in Sections 11 and 21 of Act No. 101/2000 of the Czech legislative code, on the protection of personal data, which in particular state that the provision of personal data is voluntary, that consent can be revoked at any time at no cost via the correspondence address of the administrator, that subscribers have the right to access their personal data and to request its correction thereof, and rights to the blocking of incorrect personal data, the liquidation of personal data, etc. In case of any doubt regarding the compliance of the administrator in relation to such subscriber rights, a subscriber is entitled to bring their case to the attention of the administrator or to directly approach the Office for the Protection of Personal Data [ÚOOÚ]. The offer is valid only for orders delivered within the territory of the Czech Republic. 16 diversions

picture of the week Photo: Film Servis Festival Karlovy Vary Photos: reuters Probolinggo vs. The Gods Somebody should really keep a scoreboard – every year, during the Hindu Yadnya Kasada festival, the Tenggerese people climb up Mount Bromo volcano in East Java, Indonesia and throw coins, fruit, vegetables and live animals into its crater as offerings to the mountain gods. And every year, locals from nearby Probolinggo climb inside the crater and wait with nets to catch money and food. The 15th century legend of childless Roro Anteng and husband Joko Seger tells how the first offering ever tossed into Mount Bromo was a child. The couple pleaded with the mountain gods for help in bearing offspring and were granted 24, on condition that the 25th must be sacrificed. Is it too much to hope that a kind villager from Probolinggo was waiting?

invitations

gig beatbox concert exhibition cinema Felix Laband Felix Zenger at Shilpa Ray Swirling Dust at DOX Woody Allen’s Irrational at Lucerna Music Bar Nákladové nádraží at Cross Club man Photos: archive Described as the dark prince Having earned praise from New Jersey-born, Brooklyn- Sculptor Richard Kočí has Philosophy professor Abe of electro, South African the likes of Pharrell Williams, based singer-songwriter Shilpa in recent years moved away Lucas arrives on an American Felix Laband plays Prague’s Finnish beatbox artist Felix Ray brings her sophisticated, from monumental wooden small town campus. People Lucerna Music Bar on August 11, Zenger is said to have gone way sardonic sense of humour to sculptures dominated by see him as a womaniser and presenting his new album Deaf beyond the usual conceptions of her songs. She delivers the architectural rationality in alcoholic, but can’t see that Safari. His unique live show beatboxing as an art form on his songs in a voice that shapeshifts favour of shapes distinguished he is a disillusioned idealist in will be accompanied by visual debut album Won’t Say a Thing. constantly between a howl and by playful colours and organic a state of deep nihilism and artist Kerry Chaloner. Laband Immersed in sound since the a coo, between a boozy irony polymorphism. The artist, who arrogant desperation. He enters creates minimalist soundscapes age of five – he started out on and an acid rebuke. Ray caused left Czechoslovakia in 1967 for into a platonic relationship with with classical, jazz and old the piano – he's praised for an a stir when, to debut her new the US, has in Swirling Dust a pretty and bright student. television samples overlaid with extraordinary skill level and an album, she created a parody replaced wood with polyester One day, in a diner, Abe and Jill instrumental performances. ability to put his talent to good news site called Savage Times. resin and introduced looseness surprise a conversation that will British DJ and producer Jon use in questing for his musical August 4, Cross Club, Prague. and playfulness. Until August dramatically change the course Kennedy is the support act. goals. August 2, Nákladové 31 at Prague’s DOX Centre for of their lives. August 12, Aero nádraží Žižkov, Prague. Contemporary Art. cinema, Prague.