18/04/2005 12:17:49 pm
Booming Prague. The purcasing power of the average citizen in Prague, the Czech capitol, is 153 per cent of the EU average. And that is apparent for any visitor; clean streets, renovated buildings, new cars, exclusive shops and restaurants. It is the result of the economic boom following the collapse of the planned economy and the Wall - and it has intensified following EU membership. Growth this year is estimated to be some 4,5 per cent. By 2010, the Czech Republic will probably have introduced the euro - they are already close to fulfilling the criteria - which is likely to boost exports and investments even more. They will probably also lower their corporate tax from 28 to 24 per cent, due to competition from other new EU members. Tax competition does not only affect Old Europe.