The government agency CzechInvest mediated 154 new foreign and domestic investment projects worth over CZK 73 billion (€2.5 billion) in 2005, representing a 5.5% year-on-year increase in number, and a 37.7% y/y in volume, CzechInvest General Director Tomas Hruda announced, adding that the new investments will create at least 21,653 new jobs in the following years.

Deputy Industry Minister Vaclav Petricek commented the results by saying that the fears that investors lose their interest in the country has not materialized, on the contrary, further expansion by investors already present in the country has been observed. In 2005 the biggest investment was Skoda Auto's CZK6.1 billion extension of its plant in Kvasiny, East Bohemia, creating 2,150 jobs, while Czech Airlines invested CZK1.25 billion in a new repair centre which will employ up to 400 people. Most of the investors (42) were from Germany, the Czech Republic (29) and the USA (21). In terms of regions, Jihomoravsky kraj in southern Moravia attracted 32 projects worth CZK7.7 billion, while Ustecky kraj in northern Bohemia and Moravskoslezsky kraj in northern Moravia together lured 49 projects amounting to CZK26 billion.

We note that in Jan.-Oct., the Czech Republic attracted FDI totaling CZK238.1 billion, representing a 107% compared to full-2004 mainly due to the sale of Cesky Telecm to the Spanish Telefonica for CZK82.6 billion. The state offers investors considerable tax breaks lasting up to 10 years, a subsidy for a newly created job worth up to CZK 200,000 and various courses and personnel retraining. The government also prepares industrial zones and infrastructure for investors. It spent CZK4.26 billion on the zones from 1998 to 2004 and has earmarked a further CZK3.25 billion from privatization proceeds for their support until 2007. Throughout its existence since 1992 CzechInvest has taken part in 605 investment projects worth over US$15 billion in total, owing to which almost 125,000 direct jobs are to be gradually created.