Chunks of a Ministry of Environment–piloted bid to reward Czech power companies, primarily state-controlled ČEZ, with free carbon emissions allowances in return for investments in cleaner electricity production have been rejected by Brussels officials with another problem stemming from concerns that Czech bid will excessively boost ČEZ’s market position.

The Ministry of Industry has lodged a proposal for a new oil or oil products tax to help boost the country’s strategic reserves to 120 days from 90 days. New EU legislation demands countries stock specific oil products as well as oil and tighten up the oil storage rules with an end year deadline for measures to be taken. 

With billions of crowns in EU funding frozen, the Czech government is finally taking action. Finance Minister Miroslav Kalousek (TOP 09) is planning to gather all the auditors responsible for controlling EU grant expenditure from various regions and regional bodies into a single unit within his ministry. According to a number of sources, however, the Finance Ministry holds its fair share of responsibility for misuse of EU funds and flawed surveillance.

Prime Minister Petr Nečas says cabinet ministers in the three-part coalition government have given him a mandate not to sign the EU’s new budgetary discipline treaty at the EU summit in Brussels on Thursday and Friday. Nečas admits, however, that the cabinet remains divided over the treaty while again stressing that the Czech Republic could always on to sign on to it later.