Economic quarterly with a Supplement are Designed for Foreign Partners, for Use in Business, Financial and Manufacturing Circles, and by State Bodies and Institutions Interested in Cooperation with Czech Republic

THE CONTENTS OF THE LATEST ISSUE

Czech System of Investment Incentives Among Most Open Ones

Investment incentives earned the Czech Republic CZK 229.972 billion (approx. EUR 9.2 billion) from their introduction in 1998 until 2008. According to the results of a study by the Deloitte consulting firm which described the benefits and costs of all investment incentives provided since the beginning of the system's operation, some 308 thousand new jobs have been created thanks to the incentives. This means that almost 10% of all employees in the Czech Republic today work in companies supported by the incentives, or for their suppliers.

Altogether, the state had provided Czech and foreign investors with support in the amount of CZK 30.068 billion (approx. EUR 1.2 billion), and collected CZK 260.041 billion (approx. EUR 10.4 billion) in taxes and employee payments from the same companies and their suppliers. The study proved that approximately three quarters of new jobs, and state budget earnings as well, are created at the suppliers used by the investors who had been supported by incentives.

“This proves that as the influence of the incentives multiplies as they spread through the economy, many other companies benefit from them although they themselves have not been directly supported,” explains Luděk Niedermayer, the director of the Consulting department in Deloitte. 486 entities drew on investment incentives until 2008. The investors put CZK 357 billion into the supported companies. Almost one quarter of all the promised incentives was acquired by Czech firms, with only German firms being more active, albeit by just one per cent. full article


Insolvency Law: How to Protect Claims?

The number of business people facing financial difficulties in this current economic crisis is higher than ever before. Hence, a higher degree of diligence is required when doing business. Which are the basic principles of the Insolvency Law in the Czech Republic and the general recommendations to claim protection?

The insolvency issue is regulated by Act No. 182/2006 Coll., on bankruptcy and the methods for its solution (the Insolvency Act). This Act became effective as of 1 January 2008 and, contrary to the former regulation, it emphasizes the influence of creditors on insolvency proceedings and provides more possible insolvency solutions, namely enabling the sanitation of a debtor's business and the continuation of its business activities, if this is effective in a particular case. full article


All-embracing Methods of the Packaging Industry

Packaging is not only an important source of information for customers (with its shapes and graphic features), but it also plays a role in manipulation (i.e. as storage space for products), and ensuring the protection of products.

An ever greater emphasis is placed in the Czech Republic, as well as globally, on the function of packaging from the viewpoint of design, which is seen as a feature that should correspond to the product brand and publicise it, attract consumers, and present its contents as sought-after merchandise. Czech customers look for the convenience brought on by developments in the packaging industry, whether it is, for example, the ergonomy of bottled drinks or the easy opening of tinned liver pâté. According to surveys, one of the important factors for consumers, influencing their shopping decisions, has lately also been the aspect whether environmentally-friendly materials have been used in the manufacture of the packaging. Indeed, when looking at a packaged product, Czechs also subconsciously wonder whether the item of packaging can be recycled.

This is one reason why the Czech Republic ranks among the top European countries in terms of the amount of sorted packaging waste. In 2009, every Czech sorted on average approximately 35.9 kilograms and 70.9 % of all the packaging introduced on to the market. It is also important that the manufacture of packaging is dominated by cardboard and paper (42%), followed by plastics (32 %), glass (11 %), metals (10 %), and other materials (5 %). full article