Czech Republic - Factors To Watch on June 27

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ALL TIMES GMT (Czech Republic: GMT + 2 hours)

======================== ECONOMIC DATA ========================

* No economic data are due out until June 29, when first quarter foreign debt and May money supply figures will be released.

Real-time economic data releases...................

Previous stories on Czech data............[CZ-RTRS-LEN-ECI]

Overview of economic data and forecasts.........

========================= TOP STORY ===========================

SHARPER TAX CUT

Lawmakers for the ruling Civic Democrats (ODS) agreed on Tuesday to push for a lowering of corporate tax to 19 percent in 2008, two years earlier than the government has proposed.

Story: [nL26914517]

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

==================== ELSEWHERE IN THE NEWS ====================

BOND AUCTION

The Finance Ministry offers a 7 billion crown ($328.3 million) tranche re-opening the 5-year, 3.55 percent coupon government bond at an auction to be conducted by the central bank.

Bids are due by 1000.

Auction details and results:

CABINET MEETING

The government meets in a regular weekly session. No market-related items are officially on the agenda.

News conference is tentatively scheduled for 1100.

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

C.BANK GOVERNOR SPEAKS

Central bank's (CNB) Governor Zdenek Tuma speaks at 1400 at a panel discussion on the role of national banks in regulating financial markets.

He is not expected to make any comments on the inflation and interest rate outlook one day before a monthly policy meeting, scheduled for Thursday.

Related news: [RTRS-LEN-CZ-CEN-PLCY]

RATE OUTLOOK: HIKE SEEN IN JULY

The Czech central bank will take a break from raising interest rates at its June 28 policy meeting, but a build-up in price pressures will bring another policy tightening in July, a Reuters poll showed.

Story: [ID:nL22628428]

TABLE of analysts' forecasts: [nL22263839]

Related news: [RTRS-LEN-CZ-INT]

FACTBOX on east European rate-setting meetings: [nL22203868]

PENSION CHANGES

The Czech government invited the opposition on Tuesday to work on a plan to revamp the country's pay-as-you-go pension scheme from 2009 to prevent it from slipping into deepening deficits, Deputy Prime Minister Petr Necas said.

[nL26412894] [RTRS-LEN-CZ-GVD-POL]

CEZ IN ROMANIA

Power firm CEZ has entered a tender to build a 400-500 megawatt power plant in Romania's Borzesti.

[nPRA001367] [RTRS-LEN-CZ-CEZPsp.PR]

NEW GAS POWER PLANT

CEZ wants to select the location for the construction of its first gas power plant with an installed output of roughly 400 MW by the end of this year, writes the daily Pravo. CEZ has long-term plans to build gas sources with an output of around 1,200 MW to produce up to 5 billion kWh of electricity per year, the paper reports.

PEGAS DIVIDEND

Artificial textile maker Pegas Nonwovens will pay a 7 million euro ($9.42 million) dividend in the third quarter of this year, about a year earlier than originally planned.

[nL26510531] [RTRS-LEN-CZ-PGSNsp.PR]

E.ON TO EXPAND IN E.EUROPE

Germany's E.ON will seek to boost its role in eastern European power generation after failing with a bid for Spanish Endesa .

[nL2624004] [RTRS-LEN-CZ-EONG.DE]

(Reuters has not verified any of the newspaper reports that may be quoted above and does not vouch for their accuracy.)

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

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