Czech Republic - Factors To Watch on May 23

...

GOVT DISCUSSES FISCAL REFORMS

The three-party coalition cabinet meets in a regular weekly session. It is expected to give a final approval to a package of fiscal measures overhauling taxes and cutting spending to bring the budget deficit to 3 percent of GDP next year.

A news conference is tentatively scheduled for 2 p.m. (1200 GMT).

Related news: [RTRS-LEN-CZ-GVD-POL]

FACTBOX on fiscal proposals: [ID:nL03553262]

ENVIRONMENTAL TAXES

Green Party Chairman Martin Bursik was quoted as saying by the daily Lidove Noviny that the resolution of the environmental tax reform will be key, especially an agreement on exceptions to the taxation of natural gas as a heat source for households, which his party is pushing for.

C.BANKER AGAINST IMMINENT RATE HIKE

The current economic data in the Czech Republic are not sufficiently worrying to warrant a hike in interest rates this month, central bank (CNB) board member Robert Holman said.

News report: [nL22287045]

VICE-GOV CALLS FOR TIGHTER CONDITIONS

Interest rates need to rise soon, unless the crown currency firms enough to keep inflation at bay in the booming Czech economy, central bank (CNB) Vice-Governor Ludek Niedermayer told Reuters in an interview on Monday.

Report on the interview: [ID:nL21519402]

News on CNB policymakers' comments: [RTRS-LEN-CZ-CEN-PLCY]

FACTBOX on central European rate policies: [ID:nL21566195]

CEZ STAKE TO BE SOLD AT MARKET PRICES

The finance ministry will sell a 7 percent stake in power firm CEZ gradually through the capital market at market prices, and not through a book-building process, minister Miroslav Kalousek said.

News report: [nL22406235]

Previous stories on the company: [RTRS-LEN-CZ-CEZPsp.PR]

REUTERS POLL: CROWN SEEN ROUGHLY STEADY NEAR-TERM

The Czech crown is seen holding steady near 28 per euro in the next three months, but will resume firming and set new record highs a year from now, a Reuters poll showed.

[ID:nL21676274]

TABLE of forecasts: [ID:nL21658581]

Past results of the monthly survey: [CZK/POLL]

Regular updates on crown moves: [CZK/]

For overview of economic data and forecasts click on For Instant Views of key economic data click on [CZ/INSTANT] For summary of economic data and forecasts For diary of forthcoming Czech events [CZ/DIARY] For calendar of east European economic indicators [CONV/DIARY] TOP NEWS -- Emerging markets [TOP/EMRG] TOP NEWS -- Convergence watch [TOP/EAST]

For an economic indicator diary for the euro zone, the United States and other Group of Seven countries see

For real-time stock market index quotes click in brackets: Warsaw WIG20 Budapest BUX Prague PX

News editor of the day: Alan Crosby on +420 224 190 477; fax: +420 224 229 935

E-mail: prague.newsroom@reuters.com

Reuters Messaging: alan.crosby.reuters.com@reuters.net

[PRAGUE/Reuters/Finance.cz]