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The other very renowned fair
is the International Engineering
Fair, which in 2003 was visited by
105,586 visitors from 57 countries.
Out of 660 exhibitors 68 % were
from the EU countries. The fairs
always draw high attention of the
business community, public as well
as media. Brno as a fair site is favourite
a. o. for the relative closeness to
the neighbouring countries, Austria
and Slovakia and their capitals
(Vienna, Bratislava).
Investments
The authorities of the Czech Republic
continue to create favourable conditions
for foreign entrepreneurs. The
Czech Republic had attracted by 2002
more foreign direct investments per
capita than any other country of Central
and Eastern Europe. The authorities
provide incentives for green and
brown field investments, which differ
from place to place according to the
kind of investment, number of new
jobs created, region and location.
Normally the local authorities are sufficiently
competent in providing all
necessary information and assistance
to potential investors. They dispose
of all kind of information on industrial
zones, status of infrastructure,
grounds and office space and may
be very helpful. Due to the Embassy’s
good contacts to the regional and
local authorities it can be an efficient
intermediary as it has been for many
potential investors so far.
General conditions
Taxes
Under the competitive pressure
from Poland, Slovakia and Hungary,
the Czech government de cided to
simplify and lower the tax structure.
The corporate tax will be decreased
gradually from 31 % to the final 24 %
in 2006. As a result of the tax reform
the corporate tax in the Czech
Republic declined to 28 % already
this year.
Labour cost
The average gross salary of an
employee in the Czech Republic
amounts to around 570 EUR (17,900
CZK). However, on top of the gross
salary the employer has to pay 35 %
benefits (social, health, pension,
sick ness, unemployment). The level
of the salary strongly depends on
the location and particular region.
Whereas the worker in industry in
Prague would have the gross salary
of 14,000 to 16,000 CZK (500 EUR)
the same job may be assumed by
a worker in one of the regions for
e. g. 10,000 CZK (320 EUR).
Human resources
The average unemployment rate
according to the EU methodology
reached 9.2 % in July 2004 and the
labour offices registered 495.4 thousand
of unemployed job applicants
being able to take a job. Most of the
unemployed (74.6 %) are secondary
school graduates or people with basic
education. Many of redundant people
are skilled technicians or have experience
in machinery and engineering
especially in the regions that are
undergoing the restructuring of the
heavy industry in the Czech Republic
(North Bohemia and North Moravia).
The level of unemployment differs
from region to region. Prague
has the lowest rate around 2-3 %,
whereas North Bohemian and
North Moravian (Moravian Silesian)
regions reach 16-18 % and in particular
areas 20 % and more.
Luxembourg contacts
Besides the 2002 founded Embassy
of Luxembourg in the Czech Republic
there is also the Czech-Belgian-Luxembourg
Chamber of Commerce in Prague
active since 1997. The members of the
Chamber receive on regular basis all
relevant information relating to the
Czech-Luxembourg business relations.
Next major activity
The next trade mission of Czech
entrepreneurs to Luxembourg which
is organised by the Czech-Belgian-
Luxembourg Chamber of Commerce
is planned for 10 and 11 November
2004 and is of course open to all
interested Luxembourg companies.
This article is a summary of the
contribution of Mr Jan Prusak, economic
and commercial expert at the
Luxembourg Embassy in Prague,
on the occasion of the „Journée
d’opportunités d‘Affaires” at the
Cham ber of Commerce in June
2004. ■
Contacts – Business and commercial information
Luxembourg Embassy in the Czech Republic
Trziste 13, 118 00 Praha 1
e-mail: jan.prusak@mae.etat.lu • www.ambalux.cz • Tel: +420 257 181 800
Czech-Belgian-Luxembourg Chamber of Commerce
Anglická 20, 120 00 Praha 2
e-mail: cblkomora@nextra.cz • www.cblchamber.cz
Tel: +420 261 352 090, +420 261 352 108
Chamber of Commerce of the Czech Republic
Freyova 27/82, 190 00 Praha 9
e-mail: office@komora.cz • www.komora.cz • Tel: +420 296 641 111
Czechinvest
(Agency to promote Investments in CZ) • www.czechinvest.cz
Czechtrade (Agency to promote trade) • www.czechtrade.cz
Ministry of Industry and Trade • www.mpo.cz
Trade Fairs
In Brno
www.bvv.cz • Tel: +420 541 151 111
In Prague
www.incheba.cz • Tel: +420 220 103 111
25 • Merkur • Octobre 2004