Czech Republic - Factors To Watch on Dec 13

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BUDGET DEBATE

The lower house of parliament is scheduled to open debate in the third and final reading of the 2007 central state budget at 9 a.m. (0800 GMT).

Extra spending proposed by the lower house of parliament threatens to boost the budget deficit by at least 6.4 billion crowns ($303.5 million) compared with the 91.3 billion target, Finance Minister Vlastimil Tlusty said.

[nL12888852] [RTRS-CZ-POL-GVD-LEN]

GOVT TALKS

Rightist and leftist parties failed to bridge their disputes over policy issues on Tuesday in talks to form a government and break a stalemate six months after an inconclusive general election.

[nL12876575]

Civic Democrat (ODS) leaders meet at 5 p.m (1600 GMT). News conference expected at 6:30 p.m. (1730 GMT).

- For most recent stories on Czech politics, double click on [RTRS-LEN-CZ-POL].

DEBT AUCTION

The finance ministry auctions a 7 billion crown ($331.9 million) tranche re-opening the 3.25 percent government bond due November 2009 .

- For auction details and results, double click on the code in brackets .

CURRENT ACCOUNT

Central bank (CNB) releases October current account balance at 10 a.m. (0900 GMT). Analysts polled by Reuters predicted a 9.0 billion crown monthly deficit following a 13.9 billion shortfall in September.

- For real-time economic data releases and consensus forecasts, double click on the code in brackets:

- For quick overview of most recent economic indicator releases, click on [CZ/INSTANT].

UNIPETROL EGM

Chemicals group Unipetrol , a unit of Poland's PKN Orlen , holds an extraordinary general meeting to vote on personnel changes to the firm's supervisory board.

[RTRS-LEN-CZ-UNPEsp.PR]

STRONG CROWN DRAWS IRE OF EXPORTERS

The Czech Exporters' Association urged the central bank and the government to act to halt a firming in the crown currency. Its representative was quoted as telling the business daily Hospodarske Noviny that exporters expect to face losses of up to 10 billion crowns ($474.2 million) because of the firm crown.

- For regular market reports on the Czech currency, click on [CZK/].

INDUSTRIAL OUTPUT

Industrial output rose by a quicker than expected 12.8 percent year-on-year rate in October, after downwardly revised 5.5 percent growth in the prior month.

[nL12357215] [RTRS-LEN-CZ-ECI]

CEZ SEES GROWTH OPPORTUNITIES

Power firm CEZ will continue its march to expand in central and eastern Europe and is setting its sights on Turkey, the firm's mergers and acquisitions chief Vladimir Schmalz told Reuters in an interview.

[nL12897029] [RTRS-LEN-CZ-CEZPsp.PR]

CHECKS AT SLOVAK BORDER?

The Czech Republic may erect a guarded border with Slovakia, ending free travel inside former Czechoslovakia, unless Bratislava tightens controls on its frontier with Ukraine, a Czech official said.

[nL12322138] [RTRS-LEN-CZ-EU]

SICKNESS REFORM DELAY

The lower house of parliament agreed to delay an overhaul of sickness benefits payments by one year to 2008, writes the daily Lidove Noviny. The delay should help prevent a rise in public spending and keep a lid on the budget deficit next year.

Overview of past economic data and market forecasts 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

((Compiled by Marek Petrus; Editing by xxx xxx; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477)) ($1=21.09 Czech Crown)

[PRAGUE/Reuters/Finance.cz]