Czech State Deficit Sparks ECB Criticism Amid Industry Overhaul

The European Central Bank (ECB) and EU Commission have criticized the Czech Republic for its growing state deficit, making it impossible to adopt the euro quickly. In its first 'Convergence Report' on the Czech Republic, the ECB called for budget deficits to be slashed and labor market and pension system reforms.

The Cabinet has approved a plan to create 'one-stop' central registration desks for new businesses, aiming to reduce the registration time from several months to two weeks by 2006. This move is designed to simplify the process of setting up a company in the Czech Republic.

Ispat Nova hut's management has offered its employees an unprecedented severance pay package worth up to 25 times their average monthly wage, which currently stands at 23,000 crowns. The offer is valid until mid-November and aims to encourage half of the 2,000 staff members who will be laid off by 2006 to accept it.