Citizen Havel Photos and anecdotes capture the late playwright president before and after he ascended to the Castle TOP STORY pages 8–11

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Tickled by ivories A decade ago rivals saw piano maker Petrof as done for. But it wasn’t so FACE TO FACE pages 10–11

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Czech engineers

set for 3D

revolution Jan Stuchlík

W

orldwide sales of 3D printers for the production of metal parts are growing at an annual clip of tens of percent. South Bohemia’s Kovosvit MAS will in 2017 jump on the accelerating bandwagon thanks to new era equipment developed in a link-up with experts at Prague’s Czech

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Technical University [ČVUT]. Its new machines are capable of standard cast milling, enabling the welding of metals with the 3D printing method. The company, based in Sezimovo Ústí, South Bohemia, is promising to cut costs by two-thirds by using the technology instead of the direct metal laser sintering using powdered metal that is utilised by competitors. Continues on page 4

Photo: Profimedia.cz

Machine tools maker Kovosvit MAS is primed to "join the future" by becoming one of the world’s 60 or so 3D metal printing equipment producers

14.10.2016 12:17:06

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news

Italians hit the buffers at Main Station Pa

tr

Grandi Stazioni’s plea for more time to finish reconstruction refused

Jan Šind

tice to quit. But the Italians continue to claim that negotiations are still ongoing with no definitive decision taken as yet. That seems to indicate that the parting might be less than amicable. Grandi Stazioni rejects any other option

than continued cooperation. Company secretary Andrea Odoardi has threatened SŽDC with litigation. Two weeks ago, he said his company would demand compensation not only for the CZK 1.2bn it had already invested in the stati-

on but for further billions of crowns in damages. SŽDC on the other hand points to how Grandi Stazioni had not only had enough time to complete the reconstruction, but had already been granted one deadline extension to finish it.

D8 subsoil issues surface once more

Photo: ČTK

David Vagaday

Planetarians present the 8-million pixel Starvid Planetarium Prague has opened a  modernised auditorium named Starvid. It enjoys a  new projection system acquired and installed at a cost of more than four million crowns. Images are projected with the benefit of eight million pixels, which provides a  definition that is more than four times that of the previous used technology. The planetarium, located in Stromovka park, is one of the largest in the world, with a projection dome of 23.5 m. The dome of the world’s largest planetarium, in Japan, measures 35 m. Pictured is a moment from the How to Make a Comet show presented to demonstrate the improved auditorium experience

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Unstable subsoil continues pose issues for the D8 motorway that connects Prague to the north of the country. This time difficulties have cropped up with a road section near Prackovice nad Labem, immediately adjacent to the section that was buried under a  landslide. As long as the problems are deemed to place traffic safety in jeopardy, the commissioning of the section will have to be delayed. The latest intended commissioning date is 17 December. “Nobody will be allowed through to there unless the motorway is 100-percent safe,” said transport minister Dan Ťok (ANO). Despite Ťok’s statement, his ministry is sticking, for the time being, with the newest set date while working in tandem with the Road and Motorway Directorate [ŘSD] to find a solution. The D8 motorway, meant as a link running from Pra-

gue to Ústí nad Labem and through to Germany, has been plagued by unstable subsoil for quite some time. Following heavy rainfall, there was a landslide in June 2013 near Litochovice in the Litoměřice region. The landslip buried about 200 metres of the motorway and damaged nearby railway tracks. In the words of Miroslava Pošvářová, director of the “Shadow Road and Motorway Directorate”, the threat of a new landslide is not exactly anything that should surprise. “There have been countless warnings in previous months and years regarding subsoil instability affecting the three-kilometre section, including a bridge abutment at one end of this section. Given the risk of slipping soil, the foundations of the bridge are quite unsatisfactory as the stilts are too short,” said the head of the nonprofit organisation founded by transport entrepreneur Radim Jančura.

14.10.2016 12:18:26

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Photo: ČTK

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he wheels have come off Italian company Grandi Stazioni’s plan to finish the reconstruction of Prague’s Hlavní nádraží [Main Railway Station]. As anticipated by E15 daily a fortnight ago, the Railway Infrastructure Administration [SŽDC] is ending its contractual relationship with the company after assessing recommendations received from its lawyers and the Office for the Protection of Competition [ÚOHS]. “The contract will terminate on 16 October 2016 with the expiration of its primary duration,” said SŽDC spokesperson Kateřina Šubová. Rail officials have already asked Grandi Stazioni to hand over the “subject of lease” in connection with the impending expiration of the contract, shattering the company’s who-

le business plan devised for the Czech Republic. The firm had hoped to generate revenue from maintaining the railway station for the next 30 years. However, it failed to complete the building’s reconstruction and even requested another two years to refurbish the old “Fanta” building. Any such extension would require an amendment to the original contract, something SŽDC says is not only out of the question but is also apparently against the law. “We have in place all the measures necessary for a smooth handover of the railway buildings from Grandi Stazioni to SŽDC with zero interruption to the railway station’s operations, including all services provided there,” added Šubová. SŽDC plans to strike deals with all merchants who currently lease premises within the station. Grandi Stazioni confirmed it had received no-

Photo: Profimedia.cz

PRAGUE Jan Šindelář

Prag

Previou The firm in 2014 council annual The Zah exclude

on Passengers packing

m and y, has stable e time. l, there e 2013 e Litoandslip tres of maged In the vářová, w Road orate”, ndslide ng that re have ngs in years ability lometbridge of this k of sliions of nsatisre too of the n founrepre-

trains to Prague

Hemmed in

Photo: Profimedia.cz

Last year produced a milestone for the railways as for the first time ever over 12 months more than 20 million passengers took the train to the capital. That marked growth of seven percent year on year. The statistics also showed that over five years the number of passengers from some regions going by rail to Prague more than doubled. “The roads, particularly in the direction to Prague, are overloaded and the problem is not only the difficulty of getting into the city, but also parking. Therefore the growth in mobility is making itself felt there where there is capacity, consequently on the railways,” said transport expert and head of the Association of Public Transport Passengers [SCVD] Miroslav Vyka. According to Vyka, many more factors are at play in causing the switch to trains, such as the introduction of Wi-Fi connections and power sockets in carriages and improvements in the quality of trains

Photo: Vectron

Jan Šindelář

and services, all of which enables travellers to make active use of their journey time. “Growth in transport is reproducing on the railways, which have big potential, given the substantial modernising of infrastructure, faster trains and the introduction of modern train units,” said Czech Railways [ČD] spokesman Petr Šťáhlavský. Vyka added: “When we also look at the fact that people in this country do not like moving home for work purposes then commuting can be the sole choice when you want to remain

living in the same place and simultaneously want interesting employment with corresponding remuneration.” The statistics show the biggest train travel growth in Moravia. For instance, the number of passenger journeys from South Moravia to Prague last year jumped around a fifth to 543,000. Five years ago, the total stood at less than half that. Vyka mostly attributed the change to the introduction of modern Railjet trains and the “dug-up” state of swathes of the D1 motorway.

It was a year ago that a diesel-powered Audi 8 stopped in front of the European Commission building. New Volkswagen chief Herbert Diss stepped out and told Elżbieta Bieńkowska, commissioner for industry: “We made a mistake, we’ll fix the damage.” Now the situation has changed. Diss is in constant contac with Brussels, where Czech Věra Jourová – the justice, consumer and gender equality commissioner – now stands at Bieńkowska’s side. Both women are asking more of the German carmaker han it would like: VW must compensate for damages as well as take steps to regain the trust of consumers. That amounts to more than



simply updating emissions software – it also ranges to billions of crowns to be spent in production investments and compensation for drivers in Europe. The Commission now has in its hands a plan to repair the doctored vehicles. Jourová has welcomed that, but conditionally. “It is a start. We are far from the end of this process.” Her words serve as a warning that the EU’s executive body is insisting on compensation for damages. For VW, it may mean facing up to an even harder reality. Only last week, its works council chief said the firm could cut 25,000 staff over the next decade as older workers retire. VW, it seems, may be in a battle for its very survival.

Štěpán Bruner’s notebook

Chopper chase

Photo: ČTK

ions of ŽDC on to how ot only mplete ut had one desh it.

Igor Záruba’s notebook

Prague festive markets tender not without controversy Previous provider Taiko has won the tender to run the Christmas and Easter markets in Prague. The firm is connected by some media to controversial Prague lobbyist Roman Janoušek, who in 2014 was jailed for a hit and run. The results of the tender were approved by the City Hall council led by Mayor of Prague Adriana Krnáčová (ANO). The winner will be contracted to annually pay CZK 4m for leasing market settings in Old Town Square and Wenceslas Square. The Zahrada Čech firm, owned by the Litoměřice municipality, offered to pay CZK 6m, but it was excluded from the selection. No reasons for the move were given

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The success of a Slovak company ATE in a tender to run air-based emergency services in the Olomouc region has led to legal action from rival bidder DSA. The latter firm is seeking a thorough analysis of technical points in the tender. The Czech armed forces need not be bothered by such trifles as tenders. For years, the military have also been transporting patients by helicopter, although its heavy choppers are unable to land at many hospital heliports. Perhaps because of that they have been rewarded by the chance of operating three instead of two such stations. Crimea is “closer” to Russia! So say Russian scientists, who have observed that each year the

annexed peninsula moves three millimetres closer into the arms of Mother Russia. Of course it is purely coincidental that the measurements began to be recorded only after Crimea was taken from Ukraine in 2014. Prague Castle authorities have built a wooden roof so as to prevent tourists waiting to have their possessions searched by security staff from getting wet. Yes, such checks are pointless, but it is nice to know that the president is taking into account the ordinary folks’ feelings. But there is a catch – the roof is only 2x4 metres, and in the event of rain can just about only provide shelter to the police conducting security checks.

14.10.2016 12:18:37

4/5

business & markets

Crown speculators bet on new year clout En

by

Market movers see a shift to 26.93 per euro

T

he crown could strengthen to below 27 to the euro during the first days of 2017. The prediction flows from three-month crown-to-euro exchange rate projections linked to forwards which companies and financial institutions are using to plan future transactions. According to Thomson Reuters data, for the first half of January next year the market is assuming a rate of CZK 26.93/EUR 1. Some currency speculators are counting with the Czech National Bank [ČNB] releasing its grip on the crown before the end of the first quarter of 2017, which they see as possibly in line with its current commentary. “Perceptions of the short-term course of the crown

the ČNB during September had to spend around 70 billion crowns on interventions, Generali Investments estimated. That would amount to the third highest such monthly expenditure by the central bank in defence of the weak crown since it started interventions in November 2013. In all, the ČNB has put in around CZK 700bn. If the bank continued to manage the exchange value until the second quarter of 2017, in accordance with what it has publicly stated, the bill would substantially rise. Economists expect the speculators to intensify their activity. It is anticipated that once the crown policy is shed, the currency will greatly strengthen, moving to a  robust level of 24 or 25 to the euro, if the Czech Banking Association’s assessment is proved correct.

Jan Stu

Electr energie by the energy Dráb. Č ber of stoppe and gas As a sa to hous over b the res as ČEZ gy, Pra Pražsk Busi to secu suppli of 10 O sure a energi offers A supp is an o to snap said Ji rector Indepe liers [A had fa payme

Continued from page 1

Photo: ČTK

Bohemia Sekt has set out how from now on it wants to concentrate exclusively on producing sparkling and still wines. It is ridding itself of its spirits business, which includes brands such as Pražská vodka, Nordic Ice and Dynybyl. The company has sold its distillery unit to Stock Spirits Group for an undisclosed price. The acquirer owns brands such as Pilsen’s Božkov

Kovosvit is entering a market said to have very promising prospects. Although last year, world sales of industrial 3D printers only amounted to nearly four hundred, that represented year on year growth of 51 percent, according to advisory firm Context. Most of the sold printers went to customers in Western Europe. International turnover of the 3D printing market, including printing works producing 3D plastic printing, amounts to around five billion dollars annually, the latest Wohler’s Report estimated. It anticipated USD 25bn by 2021. 3D metal printing, yet to be seen in Czech industry, often produces items such as aircraft engine parts or turbines for power plants. “It is mainly used for the production of prototypes. This country is substantially lagging behind

in metal additive manufacturing [another name for 3D metal printing –Ed.] of metal components, which is apparently the fastest developing sphere in 3D printing,” said Petr Knap, managing partner at the Czech branch of consulting and advisory firm EY. With the advantage of 3D printing technology it is possible to manufacture components which you could not achieve with classic machining. Less consumption of materials is required in 3D printers’ production of parts, making manufactured items lighter and thus cheaper. Industry observers often refer to benefits seen in the moulding of casts for the pressing of plastics. Thanks to 3D printing, it is possible to make complex duct structures, used to cool the moulds and pressed parts. This speeds up the pressing. Read more at e15.cz/weekly

14.10.2016 12:19:34

Printscreen: bwin

Czech engineers set for 3D revolution

Drinks group raises glass to a future without spirits

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have changed since the last meeting of the ČNB board. In short, people on the market have interpreted the words of the central bank as offering the possibility of an earlier than to now expected end to its exchange rate commitment,” said Deloitte chief economist David Marek. The movement in the market betting is according to economists down to communications from the ČNB that it could free the crown even before the attainment of the sought-after two percent tempo in prices growth. “Part of the market has started to bet on the fall of the crown commitment, for example, under the impact of strong speculative activity,” said Komerční banka economist Marek Dřímal. Substantial activity has been in evidence during recent weeks. In order to fend off strengthening in the crown rate,

Photo: Michael Tomeš

BANKING Jaroslav Bukovský

Bett agai

The gam pages f dering market -odds b levied t

ut Energy supplier owned

by mysterious Dráb folds Jan Stuchlík

et

Boo-Keun Yoon CEO, Samsung Electronics The company’s engineers thought they had the ‘firebug’ smartphones problem sussed. They didn’t. Adjusted Galaxy Note 7s kept overheating. The flagship phone was then scrapped. Consumers have even been given special boxes and gloves for use in responding to the recall.

ce for energy distribution services. “Despite numerous negotiations the debt kept on growing leaving us with no other option than to terminate our service contract with the company,” said Roman Gazdík, a spokesperson for ČEZ Distribuce. This was also the immediate cause of why Česká energie ceased to supply electricity in those regions where distribution is in the hands of ČEZ Distribuce. E15 daily was unable to

obtain a response from Česká energie, which amassed a loss of CZK 16.5m last year. Various market sources suggested that the downfall of the supplier was the result of Dráb’s failure to see through his plans to build a gas storage facility in the Vysočina region. GSCeP, a sister company to Česká energie, which was supposed to build the facility, went into bankruptcy in May. Its debts include CZK 12m owed to Česká energie.

Evžen Korec Owner, Ekospol Prague’s Ekocity Hostivař project, designed to revive a moribund brownfield site, got the green light from councillors. Ekospol can now build hundreds of apartments at the location. Oto Košta General practitioner In many regions, parties have scrambled to elect coalitions against election winner ANO – in Olomouc, however, winning local ANO movement leader Košta, a popular doc, is already assured of becoming governor. Angela Merkel Chancellor of Germany The German state has taken on responsibility for the liquidation of spent nuclear fuel. But utilities will have to stump up billions of euros to free them from nuclear waste storage liabilities. Germany decided to pull the plug on its 60-year-old nuclear industry in 2011. Josef Středula Unions leader An attempt at persuading the individual parties to support pushing through paid sick leave benefits failed at the first hurdle. Ruling coalition partner ANO said No.

Printscreen: bwin

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Ivan Bednárik Board chairman, ČD Cargo The last new Vectron locomotive from Siemens Mobility has arrived at a ČD Cargo depot. The operator wants to use the engines to strengthen its position on the long-haul market.

Photo: ČTK

Electricity supplier Česká energie has been pulled under by the extravagant plans of energy entrepreneur Ladislav Dráb. Česká energie, a member of Dráb’s CE Group, has stopped supplying electricity and gas to its 7,000 customers. As a safety measure, supplies to households have been taken over by dominant players in the respective regions, such as ČEZ Prodej, E.On, Innogy, Pražská plynárenská and Pražská energetika. Businesses were required to secure contracts with new suppliers by the morning of 10 October. “I  am quite sure all customers of Česká energie received attractive offers from other suppliers. A supplier’s collapse like this is an opportunity for others to snap up new customers,” said Jiří Gavor, executive director of the Association of Independent Energy Suppliers [ANDE]. Česká energie had fallen behind with its payments to ČEZ Distribu-

up and down

Betting firms assess the odds of action against offshore market players The game might be up for some of those foreign companies who run Czech-language internet pages from offshore locations such as Cyprus or Gibraltar. International betting firms are considering the merits of becoming ‘upright business citizens’ with an official presence on the Czech market. Amended legislation regulating gambling will from January 2017 require online fixed-odds betting and casino operators to seek a Czech commercial licence and commence paying levied taxes. The state wants to block the websites of enterprises that don’t comply

weekly

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E15 weekly, economic and business news magazine | www.e15.cz Igor Záruba, Executive Editor, [email protected]; Marian Hronek, Editor, [email protected] | Translation: TextMasters, [email protected] Contact: Adéla Nová, Secretary | Call (+420) 225 977 668 Postal address: Komunardů 1584/42, 170 00 Praha 7 | Published CN Invest a. s., Pařížská 130/26, 110 00 Praha 1 Josefov, IČ 04312945 Advertising: Šárka Kamarýtová, Sales Manager, [email protected] Production: [email protected] | Distribution: [email protected] Registration: E 21420 E15 weekly, ISSN 2464-711X Reprints & Permissions: The Publisher will consider requests for reprints or any other reproduction | Printed by EUROPRINT a. s. facebook.com/ e15weekly

14.10.2016 12:19:46

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opinion

Playing into Babiš’s hands

I

t isn’t hard to label Andrej Babiš and his ANO movement as a very real danger to Czech democracy. One can find plenty of evidence to support the assertion. But, as demonstrated by the regional and Senate election results, many voters are yet to reach this conclusion. Miroslav Kalousek – the loudest anti-Babiš voice in politics – and his TOP 09 party had a terrible election. Babiš had a pretty good one. And so one has no choice but to accept that Babiš is a stable component of the political scene. ANO is perhaps not quite an ordinary party, but it is no malignant growth that can be corrected with a simple surgical procedure. There again, one should take note that Babiš’s regional victory was hardly a landslide. He evidently picked up a few Social Democrat and even Communist voters, the latter registering a notable drop in their old allegiance. However, the election confirms ANO’s ability to attract a wide array of voters with its de-emphasis on policy and asinine marketing campaigns pledging to “make things better” and “improve things”. Nonetheless, one regional ANO party pooper was the Mayors and Independents (STAN) party; meanwhile, the Social Democrats enjoyed two notable victories in the regions, and the Christian Democrats took Zlín region.

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In fact, the results represent another welcome step away from the dangerously single-coloured election results that swept the regions in 2004 [the Civic Democrats won all but one region –Ed.]. ANO won in nine regions, and gained around half a million votes. When, in 2008, the Social Democrats switched the regional map from blue to orange, it won more than a million votes. So the trend for 2016 is a good one – regional elections should not chiefly be seen as referendums on the government. Rather they should serve as gauges of regional governments’ performan-

a few more regions acted this foolishly – without even going through the motions of coalition negotiations – Babiš would barely have to lift a finger to be assured of winning the next general election. What stronger indication of “the establishment” preventing new blood from entering local politics could Babiš ask for? And what better argument could he want to help to peddle his “I’m the good guy outsider under attack by the establishment” nonsense? The more such foolish knee-jerk coalitions coming into being, the greater will be his victo-

The election confirms ANO’s ability to attract a wide array of voters ces. Results such as Martin Půta in Liberec (STAN, governor) and Jiří Zimola (Social Democrat, governor) in South Bohemia, could suggest this year’s contests fulfilled their correct role to a greater degree than in previous years. Future regional campaigning based merely on opposing Babiš’s assault on democracy thus appears foolhardy. On a purely technical level, the ANO chief could hardly want a better result than the panic just witnessed in the Hradec Králové region. There, a hastily assembled “All against Babiš” coalition was formed within hours of the results. If

ry next year. Babiš’s soldiers should be allowed to govern in the regions – for better or worse. It is far better to let ANO shoot itself in the foot through governing, than to fuel its narrative as the injured party of real change. It is also necessary to try to find a way to counter ANO’s national-level popularity. There, playing the “threat to democracy” card may serve a useful purpose. After all, parliamentary elections have a very different character than local ones – and ANO’s nationwide 21.05 percent is hardly cause for Babiš to be popping the champagne corks.

Young voters don’t go to the polls, something which has apparently broken the back of TOP 09. But the real reasons for the poor showing of this once strong party in the regional elections are likely more complicated – and should serve as a warning to its leaders. Before the votes were even in, TOP 09’s chairman, MP Miroslav Kalousek, tried to explain away the poor showing by saying the party’s base voters didn’t turn out at the polls. He included young voters – those who engaged in political debate on social media, but then failed to actually vote. There is certainly something to be said for this non-voting phenomenon, but it can hardly be said to fully account for the collapse of what was once the Czech Republic’s strongest right-of-centre party. Far more likely is that TOP 09 may now be little more than a Prague-centric bubble. So while Kalousek and other notable

party members tried to devote intense energies to touring the regions, they still failed to break the lingering image of the former pro-austerity finance minister Kalousek as a symbol of all that was bad. In the regions, the negative caricature still resonates, as reflected in both the billboards of opponents, and also in social media chatter. But in Prague the picture is very different. TOP 09 is doing well in the capital, and thanks to its success there, it managed a decent showing in the 2013 general election, despite being a member of the losing government coalition of the day. But the party leadership has evidently failed to grasp that outside of Prague TOP 09 really is a party hovering somewhere at around five-percent of support. So now Kalousek is thrust into some obligatory navel-gazing and eating of humble pie. What happened to “HIS” voters? And, more importantly, who will pay for the party’s poor results?

joke

“When petty squabbles break out in the office, call Sharon. She used to run a daycare center.“

14.10.2016 12:21:31

255896/92  inzerce

Martin Čaban

Humble pie for Kalousek

Photo: Anna Vacková

The ANO party must now be viewed as a stable part of the Czech political scene. It’s perhaps not quite an ordinary party, but ANO is no anomaly

Stanislav Šulc’s diary

POLITICS

opinions markets

the eCONOMY business NEWS interviews

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the only english language business weekly in the czech republic

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14.10.2016 12:21:05

8/9

top story

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1973: Havel helps out during some repair work at the villa of Pavel Kohout

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he day of October 5 that recently passed would have been Václav Havel’s 80th birthday. Photographs of the late Czech president by Oldřich Škácha (who took most of the pictures in the ensuing pages) capture Havel while he was still a private citizen before November 1989. These pictures are supplemented by a collection of testimonials from Havel’s closest friends and associates sourced from the upcoming book Náš Václav Havel [Our Václav Havel] by Jan Dražan and Jan Pergler

14.10.2016 12:24:05

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Photo: © Oldřich Škácha / knihovna Václava Havla

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rádeček (a small village in northeastern Bohemia where Havel owned a countryhouse –Ed.) became a crucial sanctuary for Václav Havel. He bought the derelict property in 1967 for peanuts and then set about undertaking renovations. That was during the time when we both spent time there. His life involved being constantly on edge, but while there he could afford to forget his woes. Suddenly he was a slightly different person. This may surprise you, but the daily schedule there was actually quite intensely structured. The mornings were tough, with work taking place until noon; cooking then took place, with lunches usually quite opulent. After that came a lazy afternoon, followed by a rich evening schedule. The central feature of these evenings were Vašek’s philosophical “tomes”, during which he managed to spend two hours engaged in fantastic talk on a subject which we had chosen together. And during these we had to drink at least one crate of his atrocious white wines – he liked wines along the lines of Poezie or Dievčie hrozno... Anyway – then it all ended with a so-called effort to get back to nature. That meant climbing naked among the trees in the old orchards between Hrádeček and the house of Andrej Krob [Czech playwright and director –Ed.]. And each visit started with singing, because Hrádeček had its own hymn – Massachusetts by the Bee Gees. Why this song, I don’t exactly know. And so we had a really good time there.  Miroslav Masák, architect, advisor to Václav Havel

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Photo: Profimedia.cz

e went to tell Olga [Havel’s first wife –Ed.] that the Civic Forum [OF, a pro-democracy umbrella organisation –Ed.) would indeed be nominating him for president, and I wrote his nomination text. And she really was upset. It certainly wasn’t prearranged with her. And Olga said: “Absolutely not. Do you think that Vašek could still go to Rybárna (a local restaurant near Havel’s Prague home –Ed.) if he was up at the Castle? Guys, that Jaroslav Šabata [left-of-centre politician and philosopher –Ed.] would be good.” And so she then seriously tried to present to us the idea of Jaroslav Šabata from Brno and to argue that he would be a super president. So, I have to say, she really wasn’t for the whole idea [of her husband being president].  Michal Horáček, journalist, author, lyricist

I

Photo: © Oldřich Škácha / knihovna Václava Havla

H

e said he never wanted to be president, which is nonsense. He did. The role changed him a lot. At the beginning, he believed he would guide the state like Masaryk. That he would invite the heads of the political parties for talks, and would appoint governments according to his whims. He really did appoint the first ones in this manner, and he had considerable influence. But then later he did not. He entirely lost his political influence. Which is why in 1998 people were telling him not to run again, but I think it was a good thing that he did. He still embodied a sense of moral authority. The nation – even though his influence was diminishing – saw in him a kind of line in the sand that could not be overstepped. As long as Havel was alive, then everything would be fine.  Jan Ruml, politician

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The 1960s: The playwright’s star is on the rise. In 1963, Divadlo Na zábradlí performs his Zahradní slavnost [The Garden Party]; a year later he marries first wife Olga Šplíchalová

Photo: ČTK

 didn’t meet him until the Tříska wedding [that of Czech-American actor Jan Tříska and Karla Chadimová –Ed.] in 1968. My future husband, Jan Němec [Czech film director –Ed.], was a distant cousin of Václav. And so he took me along to the wedding, saying that he should introduce me to Václav. Only later did my husband reveal that Havel had actually wanted to meet me – and that had he, Jan, not gotten to me first, then Václav would have had me as his girlfriend. I had no idea that Václav Havel had any such ulterior motives. But that would not have worked because from the moment Olga and I laid eyes on each other we liked each other. So we ended up being a kind of trio. The truth is that when I was divorcing Němec [in 1973 –Ed.], then I went and hid out at the Havels’. It was an unusually long divorce given that we didn’t have any children. And he [Havel] was making so many jokes along the lines of: “But she was with a married man!” Of course he didn’t mention that Olga had been there too. Němec then moved to the US, and when he came back after the revolution, we all ended up spending time together again.” What were your impressions of Havel when you first met him? “Like a teddy bear. A teddy bear! And I always referred to him as Medvídek [Teddy]. But I would never dare call him that to his face: You are a Teddy. That would be too much.”  Marta Kubišová, singer and Charter 77 signatory

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1950. Havel pictured at 14 years-old, one year before he left middle school

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Photo: ČTK

top story

1979: Havel is sentenced to four-and-a-half years of imprisonment for illegal political activities. His correspondence with Olga is later published as Dopisy Olze [Letters to Olga]

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ince we are on the subject of decent conduct, I will relay one more story. I was chairman of the Senate, he was president, and we wanted to meet up in a pub in Prague’s Malá Strana. I knew that I naturally could not leave the president waiting for me. That is a kind of obsession of mine – I prefer to always go somewhere early and be the one to wait. I arrived 10 minutes early, and he was already there! So I became flustered as a result, and he saw that and apologised. Six months later we held another meeting. I said to myself: I can’t have a repeat of last time, so I will come 20 minutes beforehand. So I arrived...and he was there again. And once again he apologised. It was awful. But at the same time, one has to admire such decency and even humility. He was the head of state, but he was already there so as to not risk coming late... But perhaps that is not the best approach for power politics, as was later shown in negotiations with Václav Klaus.  Petr Pithart, politician

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he most beautiful day of my life was 29 December, 1989. That was when Václav Havel was elected president. We emerged from [St. Vitus Cathedral within Prague Castle] after the Te Deum [mass] and we talked with friends and attendees. I was popular because it was cold and I pulled out a hip flask from my coat. Then suddenly the president’s secretary appeared and told me I was invited to attend lunch. I felt truly honoured, but the ensuing lunch was truly ghastly, because back then the Castle kitchen was really abysmal. It was a working lunch, and everyone who was there was given some tasks to carry out. And before I had a chance to catch my breath suddenly I had been appointed as a Castle official.  Karel Schwarzenberg,  politician, chancellor to President Havel

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pub. I r [a resta sitting one the [late Cz of large written etc. Th being f 

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e grew close very quickly. His term leading the country was so unusual that we would mostly end up meeting in the pub. I remember one such meeting at the Vikarka [a restaurant near the Castle –Ed.]. Václav was sitting at the head of the table, and I was the only one there from Slovakia. Next to me sat Jiří Křižan [late Czech screenwriter –Ed.] and he had this kind of large chequered paper with him, and on it was written “Prime minister, minister of the interior...” etc. The first post-revolution government was being formed there and then.  Fedor Gál, politician, sociologist

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s Dienstbier’s deputy [Jiří Dienstbier, first post-1989 non-communist foreign minister –Ed.] in October 1990 I headed some talks in Warsaw and Havel called me up and told me to hurry back to Prague. So that night I got into a car, and arrived back in Prague in the morning. And Havel told me that he had decided that he had to fire Vacek [General Miroslav Vacek, defence minister 1989-90 –Ed.], and that he wanted me in the post instead. I was shocked as I had no idea he would be making such a request. But in any event, I told myself: He has to know why he is making such decisions. I had some ties to the military, and knew some generals... And he said: “So?” and I replied: “I need to think about it?” And he asked: “How long do you need?” I said: “Two or three days, as this is no picnic. I have to talk to the generals that I know, and find out the current situation.” And he said: “That won’t work.” So I asked why, and he said: “Because I have to nominate you at 2pm.” So I said to myself: “Well, if he is so determined, he must know what he is doing.” So I agreed. Luboš Dobrovský, politician, diplomat, journalist

Photo: Oldřich Škácha

Taken from the magazine

9. That rged he was my old me suing was s there to ficial. nberg, t Havel

April 1975: Václav Havel writes an open letter to Czechoslovak president Gustav Husák in the Hradčany apartment of writer Pavel Kohout

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face to face

ZUZANA CERALOVÁ PETROFOVÁ

Petrof may once more strike a chord in America

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en years ago, Europe’s largest piano maker, Hradec Králové-based Petrof, looked like it might not survive a 60-percent collapse in US-based sales. But since then the business has caught a second wind, thanks, in part, to new markets such as China

segment. But as a rule bankers can be great visionaries. They understand both macro and microeconomics, and make great partners in that regard. Did you then turn your back on the US market? Sadly, our partner there, who had stabbed us in the back, and who had caused me to have to cut the size of our firm in half – and then half again – was presenting us as “cheap goods from Eastern Europe”. And so we had a bad reputation in America. They liked us, and our sales were good. But we were selling goods at a price which we were no longer prepared to accept. And after the aforementioned bad experience, we stated that we would only sell to the US if the Americans paid upfront. And we have stuck to that. Our sales there aren’t huge. But at the same time, when musical instruments leave here for the US, they have always been prepaid. But one key development is that the state-run CzechTrade agency has named the US as a supported country for next year.

Daniel Novák

Do you have any political ambitions yourself? As the Petrof family, we have never been directly involved in politics, nor do I have any such ambitions. But we What was the likelihood of failure in are happy to support smart, right-of- restoring Petrof’s fortunes? -centre, and morally competent figures. Quite large. Back then, at the point when Petrof lost 60 percent of revenues Shortly after arriving at Petrof in as a result of the US market, major 2004, the company found itself facing players in crisis management were major problems as a result of a fall in telling me that I had no chance. They US customers. Was that a baptism of said that in reality the company was no longer ours but belonged to the banks. fire? Certainly. I am a pharmacologist by To which I responded that hope is the background, and so I lacked experi- last thing to die, and then I set about, ence. But I went into battle full steam step by step, negotiating with the banks. We persuaded them, and ultimately ahead, and it turned out well.

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Photos: E15 Michael Tomeš

You actively backed the Mayors and Independents and Eastern Czechs coalition in October’s regional elections. Why? If something is going change, then it has to start in the regions. The regions have significant powers to improve our national environment. Whether that pertains to securing quality social and health care, or to fixing broken streets, or to ensuring that our secondary schools have sufficient teachers for all subjects. All those are issues which are of daily relevance to us.

they turned out to be partners. They provided much useful guidance, and also some advice which we fortunately did not heed. What advice from the banks did you not follow? They advised us to cease making smaller upright pianos and only focus on grand pianos, because they had the best profit margin. And it is good that we did not do that. Right now, upright pianos represent our strongest sales

What does that mean for you? We are in talks about once again featuring our products at a large American musical instruments trade fair. The [trade and industry] ministry would help finance a display space. And in relation to this we are also debating whether the time has not arrived to once again focus our attentions on the US market. We will see what the mood is like at the trade fair. Petrof almost went under as a result of the impact of the financial crisis in the US. Do you not now face the same risks associated with a strong reliance on exports to China and Russia? We are trying to avoid such a risk. [Shoe firm founder Tomáš] Baťa once said that a company should not be dependent on one customer for more than 15 percent of its revenues. And because China now represents up to 35 percent of revenues, we agreed that we need to diversify to negate such a risk. So instead of one partner there we now deal with four paying partners in China. Furthermore, these cover varying territories. Asides from producing certain brands for the

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Chinese market outside of our own Petrof, we also undertake licensing efforts directly in China, and so have money flowing in from various sources. Do you face problems with plagiarised goods? We have a dedicated system which we use to determine if an instrument is genuine or a fake. Similarly to banknotes we have added a host of special detectable elements which we use to detect our products. Additionally, we know most dealers in China, and so if some instrument comes on the market posing as a Petrof, which doesn’t seem genuine, then we are immediately alerted to that. What about the situation in Russia? Right now, Russia represents 12 percent of revenues, but that figure used to be higher. Even more than 20 percent. But the political and economic situation remain not good there. People are frugal because of the weak rouble, which has been strongly reflected in private sales of large musical instruments and in school tenders. How do you manage to get hold of quality wood? Sadly the amount of available resonant wood in the Czech Republic is falling, because no-one is seeking to ensure that new trees of this kind are planted. Such trees only grow at 800 metres above sea level. Additionally, they have to be 80 or more years old. And it has to

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Just like with banknotes we have added a host of special detectable elements which we use to spot counterfeits. Our Chinese dealers alert us if an instrument appears to be a fake

Does that impact the sound of the instruments? Yes. We undertook blinds tests, during which we did not know from where a resonant wood was sourced. We let musicians try them out and evidently a difference was noticed.

This year you added a parent company above Petrof, namely Petrof Pianos Group. Did that mean some sort of internal rearranging of the business within the family? When I became managing director of the firm in 2004, I needed to have a majority share in my hands so as to be able to negotiate effectively on behalf of the company. I came to an agreement with most of my relatives and gained a 70 percent stake. The agreement was such that once the company was stabilised and consolidated, we would settle among ourselves and I would return a 50 percent stake back to them. Now that time has arrived. So together with those that went along with the plan, I created Petrof Pianos Group. I have a 51 percent stake, enabling me to run the firm. This was a way to denote those of us with a common direction for the firm, and who shared in the vision be a tree growing deep inside a forest, which I am translating. in order to be spared the influence of winds. Traditionally we used to source You took over the firm 12 years ago wood from Vysočina and Šumava, but from your father. Does he still have a now there are ever fewer of these re- say in how you run things? sources available. Meaning we have to He serves as my advisor. Because evelook elsewhere. In the Italian Dolomites rything has already happened once or on the other side of Šumava. before, then whenever I am at a loss

as to what to do, I go and see him and he proverbially pours out a solution from his sleeves. He is also of great help in PR activities. Because he likes to attend all kinds of concerts, and to talk with pianists about whether all was in order, if they are satisfied with our customer service and so on. He attends one or two concerts a week in this way, which is very helpful to me. But as for the actual running of the company, he leaves that to me. Have investors taken an interest in the company? Many competitors are unable to come to terms with the complex conditions in the market and are thus selling up to Asian firms. The Koreans and Chinese have also made advances in regard to our firm. I heard them out so as to know the kind of interest that exists in our company. But each time we ended up parting ways.

Zuzana Ceralová Petrofová (48) Fifth generation of the pianomaking Petrof family. Studied at the Pharmacological Faculty of Charles University in Hradec Králové. Joined her namesake company in 2000; took over the management four years later. Winner of the 2014 Manager of the Year Award.

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food

so

Know your stuff

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Photos: Michael Tomeš

igh how those irresistible simple dishes we love to scoff can prove a real pitfall in the kitchen. You shall overcome! At least where poppy seed cones are concerned. With repetition, you will master that potato pastry

Jana Trundová

Taken from the magazine

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Poppy seed cones 4 SERVINGS PREPARATION: 40 minutes + cooking potatoes 900 g potatoes (Czech classification: type B) 300 g coarse flour 1 heaped tbsp potato starch + layer for sprinkling cones preparation surface 2 yolks a little semolina ½ tsp salt ground poppy seeds icing sugar 100 g butter

Photo: Tomáš Lébr

Boil the potatoes in their skins, strain and leave to cool. After peeling, finely grate into a bowl. In a  small bowl, mix the egg yolks. Make a deep dimple in the potato, pour in flour and starch, as well as the yolks, and half-work out the dough with a stirring spoon. Then, with your hands, work it into a smooth soft dough which will eventually hold for shaping, but will be sufficiently light to prevent the cones from becoming stiff. From the dough, you can now make 2 roly-poly pastries. Sprinkle starch on your work surface and lightly cover the roly-polies in it before cutting them into small pieces. With your hands roll the pieces into cones the size of a finger. Drop the cones into boiling water. As soon as they surface remove them with a perforated ladle and place in a bowl. Mix the poppy seed with sugar and melt the butter. Divide the cones into plate servings, pour on the sweetened poppy seed and coat with the melted butter. For adults, you can add some plum jam mixed in rum, or some chopped and dried plums soused in rum the day before.

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14.10.2016 12:45:04

society Breakfast with PM launches E15 meetings & business brand

Photos: Michael Tomeš

With the arrival of autumn, E15 daily started its E15 meetings & business program of regular events and conferences featuring eminent guests. The first occasion, on 27 September, was Breakfast with Prime Minister Bohuslav Sobotka, held at Prague restaurant Bellevue. The PM discussed current difficulties seen in enterprise, the economy and politics with leading representatives of Czech business and important institutions. Readers of E15 were able to watch the discussion in real time on E15.cz. The moderator for the occasion was Reflex magazine commentator Bohumil Pečinka (photo on the left). Among others involved in the conversation were former Czech PM Mirek Topolánek, now a director at Slovakian gas transit operator Eustream, and Libuše Šmuclerová, CEO at Czech News Center (photo below)

ad ve r t i s i ng

Photo: Tomáš Lébr

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diversions picture of the week

Beware getting the stink eye from the Trifot

Photo: ČTK

Rebel artist David Černý’s new sculpture, the 12-metre-high stainless steel walking Trifot, stalks the new Czech Press Photo Gallery in Prague’s Nové Butovice. Somewhat inspired by The Day of the Triffids, the creature has a head made of real-brand cameras. It eyes passersby and displays them on large screens. The multi-genre art space features photos by leading Czech and foreign photographers as well as streetart and video installations. It has an archive of pictures from the annual Czech Press Photo competition

invitations GIG

CONCERT

EXHIBITION

CINEMA

Strahov Monastery

Swans, Divadlo Archa

Bugge Wesseltoft

Podzimková’s Polojasno

Café Society (2016)

This 12th century Prague treasure includes the Strahov Library with its Theological Hall, graced with 1720s stucco decoration and paintings, and the magnificent interior of the Philosophical Hall with its grandiose ceiling fresco.

The legendary experimental rock bank from New York bid their ‘Swans-song’ farewell to local fans with their last ever Prague concert. The band released 14th studio album The Glowing Man in April. Young Swedish singer Anna von Hausswolff supports. 19 October.

Prague’s Palác Akropolis on 25 October presents Bugge Wesseltoft’s New Conception of Jazz – 20 Year’s Celebration Tour. The Norwegian jazz musician, pianist, composer and producer got known for future jazz, or nu jazz.

Eliška Podzimková, an endlessly creative young multimedia artist with unique wit and great technical skill, presents Polojasno [Somewhat Cloudy] at Prague’s Jindřišská Věž until 20 November. Chuckles are found in the mundane.

A romantic comedy drama from Woody Allen. It’s the 1930s and a young Bronx native moves to Hollywood where he falls in love with the unpretentious secretary of his powerful uncle, a powerhouse talent agent. She rebuffs his advances. Cinemas everywhere.

Photos: Archive

TRIP TIP

About us. E15 Weekly is one of a group of business and economics-oriented publications printed by CN Invest a. s. It is a sister title to the E15 daily. Both periodicals, as well as a number of others, came under new ownership in the spring of 2016 when part of a portfolio formerly published by Mladá fronta a. s. was acquired. CN Invest a. s. publishes a broad range of print and online titles. In addition to other business-minded titles, the company also publishes lifestyle and women’s magazines (Maminka, Dieta, Moje psychologie) and children’s titles (Mateřídouška, Sluníčko). The publishing house also enjoys a considerable presence in the segment of technical and men’s online titles. CN Invest, and its sister company CZECH NEWS CENTER a. s. (the biggest publishing house in the Czech Republic, with titles such as Blesk, Reflex, Svět motorů, ABC), are members of the media concern CZECH MEDIA INVEST a. s.

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