Final Word from Tuesday, April 16, 2002





Czech companies that signed the Trutnov Appeal argue that the sharp appreciation of the crown is due in part to incentives for foreign investors, and they want countermeasures to be taken. Analyst David Marek of Patria Finance, citing figures from the central bank, said that about half of the appreciation is due to inward investment and about half to speculation. MP Ivan Pilip of US-DEU clarified his recent comments and said that incentives for large foreign investments are still desirable but that too much is being spent on incentives for smaller deals. The Coalition still supports incentives, he stressed, but would vote for a proposal to tighten the requirements. CzechInvest noted that incentives are aimed at exports, and it said that if the conditions for investments already in the pipeline are changed after the elections, it will send a bad signal.

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