E15 weekly 5. 12.

Monday, 5 December 2016 Issue 142 l newsstand price CZK 24/¤ 1 l www.e15.cz Fearsome race The Velká Pardubická steeplechase is a sometimes deadly fixture in world horse racing TOP STORY pages 8–9 Patriotism over nationalism Karl von Habsburg on why Central Europe must not forget its history FACE TO FACE pages 10–13 9 771803 454314 0 0 1 4 2 facebook.com/ e15weekly Defence analysts’ antennae were twitching after an expert ministerial panel selected an offer from an Israeli state defence firm that outbid French and Swedish rivals Pavel Otto It’s taken four years of decision- -making and negotiations that were sometimes undermined by unexpected setbacks, but the defence ministry has finally chosen a supplier for a modern 3D radar system. It is desperately needed to replace old Russian technology that is nearly ready for the museum. Israeli state firm IAI Elta Systems, the provider of the ELM EL/M-2084 Multi Mission Radar – which features in the SPYDER-MR, Iron Dome and David\'s Sling air defence systems – was selected by a 30-member eva- luation commission assembled to determine the most advantageous offer. The Israelis defeated France’s Thales and Sweden’s Saab in winning the deal. In return for eight mobile ra- dar units and long-term servicing, the ministry will pay out CZK 5.9 billion (EUR 218.5m). “The Israeli offer was persuasive on price, and also for the readiness to hold discussions at the inter-go- vernmental level and for the tying in of tighter cooperation be- tween armed units of the two countries,” a source who is close to both the ministry and the winning firm told E15 daily. The adjudicated results of the tender, which were scrutinised according to 360 economic-technical parameters, were offici- ally declared by defence minister Martin Strop- nický (ANO) last Friday. Stropnický had previously during his three-year long tenure as minister not managed to substantially progress such a strategic commissi- on. Though he can chalk up the radar breakthrough as a su- ccess, he will nevertheless fail to complete the contractual side by the end of this year and send the first half-a-billion-crown down payment, as was planned. Continues on page 2 3D radar deal switched on

SOCIAL CARE Adéla Čabanová Councillors at Prague City Hall are set to up- date the capital’s local government policy approach to homelessness. They will outline the priorities to be pur- sued through to 2020. “The- re are insufficient capacities when it comes to the majority of services for the homeless on the territory of Prague,” it is stated in materials prepared for the resetting of objectives. One priority is likely to be the establishment of smaller fa- cilities which are not much of a burden on surrounding environments. “The measures and services for the homele- ss must be as fair-mindedly distributed as possible on the territories of all the administe- red districts of Prague,” reads a line in documents drawn up to explore key starting points for the update. Prague is currently dis- cussing two settings for new centres. It wants to set up two more low-threshold-to-entry daily centres in the city centre in order to lighten the worklo- ad of existing facilities, and further centres in other areas where the homeless tend to gather. The operation of a dai- ly centre for people without a home can cost around CZK 5m annually. The original homelessness policy adopted by Prague councillors back in 2012 coun- ted with low-threshold facili- ties, but nothing has come of that prioritisation. In Prague 5, there are efforts to create a centre for the homeless in Klikatá stre- et. The anticipated place for it, however, turned out to be unavailable due to a property restitution. No other feasible place has yet been identified. “Even with the engagement of special facilitators there has been no success in fin- ding a  suitable placing for such a facility in Prague 5,” said Prague 5 spokesperson Helena Šmídová. In Prague 14, no daily cent- re for the homeless exists, but there is a question mark as to whether that is actually a pro- blem. “The homeless, whom we have assessed through monitoring as amounting to around 50 here, as a rule sleep out and early in the mor- ning make their way to the city centre, which to them is a more appealing place,” said Prague 14 spokesperson Vero- nika Berná. According to Ber- ná, it would make more sense to locate a daily centre in the Hloubětín quarter, although, she acknowledged, suitable premises for such a facility were yet to be discovered. Prague 8 Mayor Roman Petrus said City Hall should first make a contemporary map of which services for news 2/3 Prague revising policies for the homeless Efforts at creating daily assistance centres foundering across the city Photo: Archive 3D radar deal switched on 1805’s Battle of Austerlitz erupts in quiet chateau grounds Around 50 members of military history clubs and extras gathered for battle reconstructions as part of the Emperor’s Faithful programme of events. The “renewed hostilities” – brought to life in chateau grounds in Čechy pod Kosířem, near Prostějov, Central Moravia – re-enacted Battle of Austerlitz (or “Battle of Slavkov”) clashes between Napoleon’s forces and a far larger Russian and Austrian army led by Czar Alexander I and Holy Roman Emperor Francis II which took place in December 1805. Cavalry and cannon regiments were prominent as battle was joined. Pictured are French field infantry cannoneers with a four-pounder cannon. The Battle of Austerlitz, one of the most decisive engagements of the Napoleonic Wars, is often cited as the greatest victory achieved by the French emperor Photo: ČTK the homeless exist in Prague today and where. Only if such mapping demonstrated that his quarter did not have more such services than other city quarters would he move to back the setting up of a new facility. Continued from page 1 The decision of the expert pa- nelstillneedscabinetapproval, after which talks with IAI Elta Systems can begin to nail the final contractual details. Even if they take several months, it will go down as the current government’s second military deal with major significance for the future defence of the country, following the extensi- on of the Gripen fighter planes leasing arrangement closed by the Bohuslav Sobotka (Social Democrat) administration. EL/M-2084 will be dual- -purpose. Apart from its role monitoring air space above the Czech Republic to a hei- ght of 3,000 metres, with the aim of picking up even small and low-flying targets, it will also be capable of guiding and activating ground-based anti-aircraft weaponry. The inter-governmental aspect of the deal should also produce some benefits. “We wish to tie in closer armed forces co- operation with the supplier’s home country, for example in the form of joint exercises or the sharing of sensitive infor- mation,” Stropnický recently disclosed. The radar contest was seen as a  battle between two of the strongest Czech defence groups. Behind the Israelis stood the Czecho- slovak Group of Jaroslav Strnad, while Sweden’s Saab was backed by the more usu- al Czech standard bearer in defence equipment trading, namely Omnipol. During spring this year, Strnad took over Pardubice-based military electronics firm Retia. It is to contribute to the production and servicing of the acquired EL/M-2084 radar. Two years ago, Retia stood at the head of a consortium of Visegrad 4 firms which were offering the Czech Republic a 3D radar product. But the defence ministry cast aside their proposed system, spu- rring Retia to link up with IAI Elta Systems. It is thought the Czech firm will earn around two billion crowns from the radar deal.

Adéla Čabanová The pedals of the Rekola bike- sharingandbikehirecompany, which started out as a volunta- ry project, should soon be tur- ning that much faster thanks to a  three-year operational loan from Spread Capital, run by Mall.cz online retail giant founder Ondřej Fryc. “The in- vestment will make it possible for us to complete the trans- formation into a stable bona fide company,” said Rekola’s co-owner Vítek Ježek. Fryc has injected tens of millions of crowns into Rekola in return for a minority stake. As part of the Spread Capital portfolio, it will feature among investments in enterprises including online insurer ePo- jisteni.cz and wood-plastic composite materials producer Woodplastic. ThesupportofSpreadCapi- tal has also made it possible for Rekola to approach the Office for the Protection of Compe- tition [ÚOHS] to lodge its ob- jections about the bikesharing Almost but not quite the end of the road for the Segway Road signage crews have been busy on the streets of central Prague installing signs banning the two-wheeled Segway personal transporter. However, although the first signs are already up in Hradčany, by Prague Castle, the ban is not yet in place and the signs remain covered over. The installation of the signs on designated streets will continue until around 10 December. The ban cannot come into force until all the signs are in place and a two-week period has elapsed from the issuing by Prague City Hall of what is officially called a “measure of general nature” pertaining to the installation of traffic signs Rekola sat upright in saddle after investment Photo: Michael Tomeš E15 weekly, economic and business news magazine | www.e15.cz Igor Záruba, Executive Editor, igor.zaruba@cninvest.cz; Marian Hronek, Editor, marian.hronek@cninvest.cz | Translation: TextMasters, textmasters@textmasters.cz 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, sarka.kamarytova@cncenter.cz Production: vyroba@cninvest.cz | Distribution: distribuce@cninvest.cz 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 commission drawn up by the Prague Public Transit Compa- ny [DPP]. Thepublicordercountswith paying out CZK 50m for the creation of a Prague scheme anda furtherCZK10mperyear for operations. The majority of the investment costs would go on special bike stands. The Rekola system, however, does not at all require such stands – a fact that means it does not fulfil the commission’s qualifi- cation criteria. “We are convinced that this systemisoutdated,”saidJežek. What’s more, he added, the entire tender is unnecessary. “Prague need not invest one hundred million [crowns]. We are providing the same service without it,” he said. Prague representatives in- sist that people should not be encouraged by a bikesharing systemtoleavetheirbikeswhe- rever they wish. Such an app- roach can cause obstruction, particularly in the city centre. Rekola points out that it has developed its innovative GPS locatorapp.Itmakesitpossible tolimitwherepeopleleavetheir bikes, perhaps to selected avai- lable bog-standard bike stands. During the winter, the compa- ny intends to agree on specific limits with the various Prague city districts. Fryc said he thought the Re- kolaprojectwouldhavea future in Prague, even if lost the DPP tender.“WhenwefoundedMall, we were always upset when so- mebody else won a subsidy. But at the end of the day it didn’t changeanything.IfPraguecho- oses another provider, Rekola will ride on,” he remarked. Bidding for the Prague bikesharing contract is Big- Board, the largest billboard space operator, via its Velonet project. Also in the running is Homeport, which in coopera- tion with the Eltodo firm has experience in bikesharing in 16 foreign localities. After the winter pause, Re- kola will again journey out to five Czech locations, where it expects to offer 750 bicycles overall. Don’t miss the train of digitalisation Three major announcements were made by the Hungarian government at Budapest’s Regional Digital Summit. One bold move will see the corporate tax rate reduced to 9 percent for all companies as of 1 January 2017. Another tax cut to be made by the government was also introduced to the broader European public and our region: as of the same date, VAT on all digital services will be reduced to 18 percent. The third and most ambitious proposal was a new initiative to reduce VAT to 5 percent on all digital services in 2018. As Hungarian Prime Minister Viktor Orbán put it: “The internet should be considered a basic need, just like milk and bread.” These two goods already enjoy this exceptionally low VAT rate in Hungary. The Hungarian government has, meanwhile, called upon the other three Visegrad countries to support this initiative as it counters the current European regulation which only allows internet services to be taxed at the highest VAT level. Will this be an initiative that motivates V4 governments to make common cause? Will they see this as an opportunity to break through a strong barrier to growth in most of our economies, namely the low level of connectivity? We await the answer. What we know for certain is that the digital economy will be the key to economic recovery and growth in the very near future. As one of the leaders of Deutsche Telekom put it recently: Everything that can be digitalised, will be digitalised, and everything that can be connected will be connected. Unless we jump on the train of digitalisation, our region risks losing out on the fourth industrial revolution. After 26 years of slow and uneven convergence, it is time to act fast. Tax cuts help make the digital revolution real. Moreover, they also help to balance the budget. Previous tax cuts – supplemented by measures against tax fraud with the introduction of online cash registers and the Electronic Public Road Trade Control System – have generated a healthier economy and a Hungarian budget surplus of EUR 185.3m during the first ten months of 2016. These are necessary steps that make the Visegrad Group one of the pillars of European growth. The author is a Hungarian Ambassador to the Czech Republic have your say Tibor Petö

business 4/5 ENERGY Jan Stuchlík One drama is over, but another is on the ho- rizon for renewable energy operators. Starting with the good news first, the European Commission has confirmed that support awar- ded to green power plants put into operation prior to 2013 does not contravene Europe- an law. Now the Energy Re- gulatory Office [ERÚ] is set to write out support amounting to CZK 37bn for 2017. “We must await the arrival of the Commission decision and look into its conditions,” said ERÚ spokesperson Michal Kebort. The ERÚ needs to alter two price rulings, which it can process under shortened time limits. In September, it indi- cated that after the receipt of the notification it would be capable of offering the supp- ort within a couple of weeks. The Commission’s decision was welcomed by renewable energy operators, the Confe- deration of Industry of the Czech Republic and the Czech Banking Association. But now the bad news: the renewable power plant owners are not yet at ease because the Eu- ropean executive body has mentioned that the notifica- tion will create a mechanism designed to ensure that the Czech state has not provided outsized subsidies. The industry and trade ministry is now talking about a  verification process that could cover support provi- ded over the past decade. If an operator is found to have received more than it was legally permitted to obtain, the height of its subsidies could be adjusted. The mi- nistry attempted a  similar control exercise in 2013, but the screening proposal did not earn the necessary support given opposition from envi- ronmental associations and banks, the latter of which felt that the repayment of a major proportion of CZK 100m of credits awarded in the renewable energy sources sphere could be threatened. Instead, the solar tax was extended. “Solar plants have not been involved in outsized support. Only a fraction of the plants in 2008 for example drew investment and opera- tional support in which some- thing [wrong] might be found. But right now we still don’t have the specific text from the Commission,” said František Smolka, co-owner of the firm Solar Global Investment. Sources in banking circles nevertheless referred to ris- ks flowing from the way the state decides to tackle the verification. If support was to be cut before the full re- payment of loans, operators might not have enough capi- tal to pay off awarded credits. Calculations centred on se- lected projects which were drawn up by Komora OZE [the Chamber of Renewable Energy Sources] for the mi- Brussels wants subsidies verification Plant operators and banks fear what screening for outsized support might mean Suburban park outlined for rivers’ meeting point A spacious suburban park is planned for lands at the confluence of the rivers Vltava and Berounka on the outskirts of the capital. The initiative is being worked on by the Institute of Planning and Development Prague [IPR Praha]. A platform stemming from its activities, covering all involved parties – from city quarter and city parish representatives, through to Prague City Hall representatives and land plot and en- terprise owners – has been launched. IPR Praha’s intention is to win approval from City Hall for the Soutok Park [River Meeting Park] plan in January 2017. “Uncoordinated management is by now causing gradual territorial devastation, it is possible to discover a good many unauthorised garbage dumps. At the same time, these river meadow lands at the confluence have huge development potential,” said Marek Vácha, spokesperson for IPR Prague  Read more at E15.cz/weekly Photo: Reuters Jan Šindelář Czech Airways [ČSA] plans to split its air tickets into five categories that suit a range of passenger demands and pocket depths. The plan is to go into effect from the start of the new year, along with flights to new destina- tions. Overall, the new tic- kets structure will deliver some price level lowering since the national carrier’s offer will most particularly widen at the cheaper end of the spectrum targeting tra- vellers with cabin luggage only. One aim is for ČSA to feature more prominent- ly among offers presented by low-cost carriers on the many air ticket price com- parison websites. “Differences between the business strategies pursued by low-cost airlines and tradi- tional carriers are disappea- ring. We can hardly afford not to go with the current trends and fall behind our competitors,” said Ján Tóth, ČSA’s commercial director. A year ago, the carrier be- gan testing its cheapest tariff, “Value”, on flights to seven destinations: Warsaw, Copen- hagen, Düsseldorf, Venice, Milan, Hamburg and Rome. Now, its cheapest tickets will be available under the “Lite” tariff for all ČSA destinations except Riyadh and Seoul. The introduction of the segmentation can be seen as a breakthrough, especially for flights to destinations in Russia where such an offer is almost unheard of. “Passen- gers’ short flight decisions are mostly based on price,” Tóth added. ČSA offers more cheap tickets nistry suggest that the power plants have not received exce- ssive support. “But the scree- ning after all leaves us with the same anxieties we had in 2013. Particularly in terms of how it might be executed. If the state was to control all plants, it would be very hard to make that practicable,” said Štěpán Chalupa, head of Komora OZE. Photo: Profimedia.cz

Jan Šindelář Český Aeroholding is analysing its options for the best possi- ble utilisation of its Václav Ha- vel Prague Airport buildings. The property getting the lion’s share of attention is the oval- -shaped “APC building”, built by Czech Airlines [ČSA] at the beginning of the millennium as its headquarters. ČSA sold the building in 2009 because the national air carrier was strugg- ling to avoid going bust. It re- ceived CZK 600m from Český Aeroholding, the company that manages the airport, in return for the property. After years of leasing the address, ČSA moved out completely this year, leaving APC half-empty. Český Aeroholding is mulling two alternatives: one is to move all of its employees into the APC building and vacate a number of other properties, while the other option is to move everyo- ne out and vacate APC. Should the latter option be chosen, the airport administrator’s manage- ment would consider converting the property into a hotel. Acco- mmodation has been in short Airport hotel option studied for ČSA’s ex-HQ up and down Pavel Šercl CEO for CEE, Intersnack It’s crunch time. Tough competition on the crisps market has pushed its largest domestic producer into the red. Nissim Hadas Executive Vice President, IAI Elta Systems Elta defeated France’s Thales and Swede- n’s Saab in the tender to provide the Czech Republic with a 3D military radar system. Costing EUR 218.5m, the ELM EL/M-2084 Multi Mission Radar features in Israel’s Iron Dome air defence, which shoots down Hezbollah rockets. Jaroslav Vrtal Owner, Sapeli After a quarter of a century he has gained a majority stake in the largest Czech manufacturer of doors. The enterprise is successfully pushing up its revenues and profitability. Martin Lenfeld CEO, Pewag CR The Austria-headquartered international Pewag Group is transferring chains pro- duction from Italy and France to the Czech Republic. A new company plant is being built in Vamberk, East Bohemia. Vítek Ježek Co-owner, Rekola His company has secured a substantial loan from the founder of the Mall.cz internet shopping enterprise, meaning it can complete its journey to becoming a fully-fledged company. It started off as a voluntary project. Photo: Profimedia.cz supply at the airport, especially during times when airlines have needed to put up passengers st- randed by a delayed or cancelled flight. “If it were down to my per- sonal preference, I’d say that a hotel is sorely needed here. And if a major hospitality cha- in were prepared to take it on as a long-term investment then I am sure we should treat this option with all seriousness,” said Václav Řehoř, chairman of the board of Český Aeroholding and the airport’s director. Řehoř added that a decision should be reached within months. He has himself already moved out of APC and now spends most of his time in a Terminal 1 office overlooking the runway. Český Aeroholding is cu- rrently fine-tuning its “Airport City” strategy. This is meant to generate commercial revenue from the company’s unused land. The relevant document remains classified, but Řehoř claims that any development will not involve offices and shopping malls. “That is definitely a direc- tion we are not following in our deliberations,” Řehoř said. Special treat brewed up for visitors Pardubice Brewery, celebrating its 145th anniversary this year, has enhanced its imaginatively illuminated route for visitors with a novel addition: mini-brewery Arnošt. The mini-brewery is capable of producing up to 10,000 hectolitres of beer a year. The first output is to be ready for consumption in early December. Pardubice Brewery produced 89,000 hectolitres of beer last year, a quarter of which quenched thirst outside the Czech Republic Photo: ČTK Jan Mládek Czech trade and industry minister His ministry has finally managed to secure Brussels’ agreement that subsidies given to renewable energy operators are in harmony with European law. James Mattis Retired US Marine Corps general President-elect Donald Trump has named Gen James Mattis, a former marine who served in Iraq and Afghanistan, as his defence secretary. Marines fondly refer to him as Mad Dog.

Finance minister Andrej Babiš’s con- tortions around last-minute chan- ges to his EET electronic receipts system are a fasci- nating example of our post-truth age The concept of “post- -truth” – lately named word of the year by Ox- ford Dictionaries – has been discussed in many global poli- tical scenarios of late. The era of post-truth politics means the political, ideological and social norms on which we built the perception of truth/ lies are all ceasing to apply. Instead we have the social network paradigm, namely like/dislike. And it is now evident that to a large degree ANO leader Andrej Babiš has become a symptom of this phenomenon, as evidenced by a recent “spat” between the finance minister and PM Bohuslav Sobotka. Let’s focus on a single mo- ment: as a major proponent of the EET system already in place in Croatia and Slo- venia, finance minister Babiš suddenly introduces last-mi- nute changes and supposed “improvements” to the so- on-to-be introduced system. The PM then states that such conduct is both chaotic and unprofessional. Babiš retorts with a letter posted on soci- al media (and one assumes also actually sent to Sobotka) expressing his objections to such a characterisation, and arguing that the changes in question are designed to help business owners. A wonderful example of spinning in this new post-truth age. Let’s look at things the old- -fashioned way – meaning utilising arguments and lo- gic, and still giving credence to the very notion of what is the truth. Wanting to change one of this government’s most important pieces of legislati- on a week before it goes into effect is clearly unprofessio- nal. And such last-minute changes really are a recipe for chaos. And so Babiš re- ally is unable to fairly refute Sobotka’s arguments. But in the logic of the post-truth age, he can, of course deny reality and create an entirely diffe- rent one. And if wrapped up in a su- fficiently attractive manner, then this lie can enjoy greater success than Sobotka’s truth. Such wrappers stem from the tradition of spin (the tail wags the dog), meaning twis- ting reality and arguments to suit a particular point of view. Babiš put forth a super- ficially appealing argument suggesting that the changes will help businesses. Such as- sertions are then amplified through online social media until one seemingly has no choice but to approve of the EET changes, lest one be la- belled a monstrous socialistic opponent of progress. And so the lay public has managed to entirely supplant reality with fiction. Because, in actuality, businesses large- ly oppose EET in any form, including the new Babiš 2.0 version. So if the finance mi- nister was really interested in helping, then he would simply abandon the entire mandato- ry electronic receipts project altogether. Until recently such contor- tions would have been impo- ssible. Neither politicians, nor anyone of sound mind, could expect to get away with such deceptions without sig- nificant consequences. But in the post-truth age, it might even lead to an increase in ANO’s popularity and lead to Babiš finally fulfilling his ambition to become prime minister. Existing supporters evidently have no intention of abandoning the ANO leader over such a wagging of the dog, and it may even lead to the constituency of the self- -employed – largely respon- sible for the rise of the party in 2013 – returning to his ranks. Welcome to the post- -truth era. Sadly, it’s time to get used to the new rules of the game. Or rather the total absence of rules. And that is destined to cause the Social Democrats in particular some serious headaches. opinion 6/7 joke Martin Čaban’s diary Klaus reanimates, Fidel and Krakonoš cash in chips One should always start with the most important news. And so: Václav Klaus undertook a recent trip to Zurich to attend an anniversary conference of Swiss paint workers. The former president, who gave a speech, later revealed that the Slovak ambassa- dor to Switzerland, also in attendance, had committed an act of “grave offence”. Turns out that Madam Andrea Elsche- ková Matisová had stated that the EU was a helpful body, and without it we could easily end up looking like Ukraine. Václav Klaus wasn’t about to let such an “insult” pass and so, as he later related: “I wrote an SMS about it to several friends and colleagues.” What a fighter! Krakonoš is dead! Or per- haps, better stated, Czech actor František Peterka, who portrayed the legen- dary fairytale spirit of the Krkonoše Mountains during the 1970s and 80s, has passed away. Setting aside the Bolshevik propaganda- -soaked subtexts of the show, mocking anything to do with the non-prole- tariat, the show still has a place in many hearts. Peterka died at the age of 94, proving that Krako- noš was after all (almost) immortal. Fidel Castro also appeared immortal until his death last week at the age of 90. His passing led to an interesting dance of word-mincing from leaders around the world, who were desperate to find a balance between honouring an iconic leftist leader and acknowledging the less glossy aspects of Castro being a dictator and mass murderer. And so the final lesson to take away from the life of the Cuban revolutionary is perhaps this: An oppressive reign spanning half a century is certainly one way of gaining immortality, never mind the scope of histori- cal assessments spanning everything from revolu- tionary praise to utter condemnation. Photo: Anna Vacková “My phone looked huge when I first got it, but I think I’m ready to upgrade to something bigger.” Stanislav Šulc Babiš, EET and the post-truth 255869/179  inzerce

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8/9 top story Photos: ČTK The stalwart’s steeplechase Richard Guryča The 2016 edition of the legendary Velká Pardubická race – often de- scribed as the world’s most dangerous horse race – was watched by 25,000 spectators present at the racecourse, 2.3 million TV viewers and tens of thousands via online live streaming. The pinnacle of the Czech jump ra- cing season was also broadcast by Britain’s most popular racing channel, Racing UK. On the race day itself, punters pla- ced bets worth more than CZK 5m at the racecourse. The best result was achieved by a punter who correctly wagered on the first three horses to cross the finishing line. His CZK 350 flutter returned CZK 50,050. The origins of the fame of the Velká Pardubická stems from the traditi- on of hunting with hounds, imported from England and France in the early 19th century. The countryside around Pardubice mainly served as hunting grounds for the local branch of the Lichtenstein nobles. The flat, sandy and forested landscape was as close as could be to the Bohemian nobles’ romantic visions of the English coun- tryside in their quest to replicate fox hunting. However, the very first hunt with hounds organised by the Kinský family happened to follow the tradition of a French deer hunt. A hunting society was established in Pardubice in 1838 under the name of Parforsní honební společnost and it quickly made the town a popular destination for the hunting fraternity found among Czech noble families. However, where the history of the fa- mous jump race is concerned the main inspiration came from England and its own history of hunting and jump The Czech Republic is no horse racing power, but the country’s fearsome steeplechase, the Velká Pardubická, is world-renowned. Although horse sports were labelled pastimes of the bourgeoisie under the communist regime, the race thrived even under such an official putdown, and it continues to do so

racing. A major factor in the founding of the Velká Pardubická was the exi- stence of the oldest and most famous steeplechase, the Grand National, run at Aintree racecourse, near Liverpool, since 1836. The English were much emulated across the continent and the popula- rity of hunting with hounds was soon mirrored by the rise of horse racing. The lands of the Czech crown were no exception and early reports on races from across the English Channel were soon followed by jockeys and trainers who had gained practical experience in the very cradle of horse racing. The first jump racing meeting was held on hunting land just outside Par- dubice in October 1842. The initial race track in Pardubice was inaugu- rated in 1856 and from the word go featured a unique and rather deman- ding layout of obstacles. Right back to its early days, the racing tradition in Pardubice was in the hands of capable, influential and enthusiastic people who successfully laid down solid foundations for the lasting success and popularity of ar- guably the continent’s most deman- ding jump race. The founder and great supporter of horse racing in Bohemia was count Oktavián Kinský, an avid fan of hunting with hounds. He also con- tributed in no small part to the unique nature of the Pardubice racecourse. The founding of the racecourse and the big race itself was greatly influ- enced by the existence and tradition of the Grand National, to this day a pinnacle of the British National Hunt season alongside the Cheltenham Gold Cup. Some claim that early editions of the Grand National were run on rented land in Maghull, not far from Aintree on the outskirts of Liverpool. The race attracted a considerable number of spectators who were surprised to find it run on rough grass and over a num- ber of natural obstacles spread over a distance of four miles. Those were the beginnings of steeplechase racing, so different not only from flat racing but from hurdle racing as well. The Grand National grew in fame and put race going as such firmly on the map as a fashionable pastime and major social affair. It was no wonder then that the fame of the phenomenon spread quickly and soon reached Bo- hemia. A group of men associated with the Czech Horseracing Association conceived a plan to organise a race of similarly exceptional standing, on a par with the Grand National. And where else should the race be held but in Pardubice which by that time already had a racecourse that had gar- nered quite a following. The design work for the course, which was to be unlike any other course elsewhere in Europe, was placed in the hands of racing-savvy Count Oktavián Kinský along with Emil Egon, Prince of Fürs- tenberg, Count Maxmilián Ugarte and Prince Egon of Thurn and Taxis. It was the last of this group that the most notorious, feared and controversial obstacle on the course, Taxis Ditch, was named after. The first race over the new course in Pardubice was run on 5 November 1874 and it immediately attracted ex- ceptional attention. It also sparked heated discussions over the most diffi- cult, imposing obstacle on the course. Even one of the course’s authors, Emil Egon, Prince of Fürstenberg, himself an experienced horseman, wanted the fence taken out. [Allegedly Thurn and Taxis dismissed the requests with: “Your Serene Highness [Fürs- tenberg], neither you nor I will ever jump the fence again, therefore I see no reason to take it out and make [the maintain balance after initially landing on just a single front leg before the other three gradually made contact with the ground. Add that to the fact that first-timers among the horses re- alised the presence of the ditch only after they cleared the hedge. It is no wonder that the obstacle tended to cause all sorts of trouble and that of the many horses that fell many were injured so seriously that they had to be put down. Twenty eight horses have died at Taxis Ditch, compared to 14 at Becher’s Brook, the toughest obstacle in the Grand National. The 1990s saw many a sharp protest against Taxis Ditch by animal rights activists. They succeeded in having it made considerably more horse and rider-friendly, although it is still almost as formidable as before. race] any easier for anyone else.” –Ed.] The gaping ditch with a big hedge in front nevertheless stayed in place and despite a number of modifications it still remains one of the greatest draws of the race. Jockeys in the early editions of the Pardubice steeplechase were asked to jump what was to become the Taxis Ditch in the form of a ditch two metres deep and five metres wide, preceded by a hurdle. The hurdle was replaced in 1892 (when the fence also got its present name) with a hedge one and half metres tall and wide. The horse and rider were thus expected to fly a distance of about eight metres to clear both the hedge and the ditch and land safely on solid ground on the other side. The landing was espe- cially tricky as the horse needed to

10/11 face to face KARL VON HABSBURG Nationalism stems from the head, not the heart Photos: archive

Vladimír Mertlík Europe is marking the 100th anniver- sary of the death of Franz Joseph I, Em- peror of Austria and King of Bohemia. Could we begin by reflecting on this event? Of course. Nonetheless, I am still sur- prised at how people think that I will be able to reveal some great secrets about Emperor Franz Joseph. I can’t, and everything I know about him is in the public domain. What were his defining characteris- tics? His sense of responsibility, correct behaviour, talent for detail, ability to address a particular problem that was presented to him, and the fact that he was always extremely well-informed ahead of entering into any kind of for- mal talks. He governed for three gene- rations [1848-1916 –Ed.]! There were many people who were born under his reign, grew up, worked and died. And that created a kind of sense that he would always be there. It was a sense of continuity that he himself strongly helped to cultivate. In the summer of 1914 (a month after the assassination of Archduke Franz Ferdinand by a  Serbian nationalist ), the Serbs conceded to nearly all the conditions of an ultimatum issued by the Austro-Hungarian monarchy. The Habsburgs were not considered to be aggressive or oppressive, and Franz Jo- seph was viewed as ruling in the inte- rests of peace. So could the First World War not have been prevented? What can one reply to a question like that? If we closely analyse the conditi- ons of the ultimatum to Serbia [an end to all anti-Austrian propaganda and the permitting of a full investigation into the assassination of Ferdinand –Ed.] not by contemporary norms, but by the norms of the time – then they were certainly not excessive, were reasona- ble, and the Serbs actually wanted to approve them. But they gave in to pre- ssure from Russia forbidding them to do just that! This much is widely known. It’s very important to note that at the moment shots began to ring out in Sa- rajevo, none of the rulers of that time had any idea of the kind of conflict into He is the first-born son of Archduke Otto of Austria, the last Crown Prince of Austria-Hungary and head of the House of Habsburg. Karl von Habsburg is also the grandson of the last Austrian Emperor and ruler of the Austro-Hungarian Empire, Charles I. Today, the Austrian politician, businessman and aristocrat insists: “The most important duty in this present time is to not forget the past history of Central Europe.” which they were becoming entangled. No-one knew the scope and dynamic that the First World War would ulti- mately assume, nor the unimaginable losses that it would bring. They belie- ved it would be a short conflict in the manner of: mobilise [into the Kingdom of Serbia], extinguish the conflict, and six weeks later we will be back home. But things turned out very differently... Many Czechs, focused on their own na- tional ambitions, and not wanting to fight fellow Slavs on the side of Germa- ny and Hungary, deserted to the side of the Allies. If that war had turned out differently, today such Czechs would be considered traitors. Where is the boundary of loyalty in such cases? I think that the feelings that led many Czech fellow citizens to abandon the monarchy, and then towards deserti- on during the war, already existed on a latent level beforehand. It’s just that it was not a majority view until an out- side impulse stoked the fire. It’s worth examining what would have happened had war not erupted. Presumably that would mean no such expressions, or desertions. And also it’s worth thinking about what it led to – that the end of the war did not yield a fully functioning system, and that the conflict induced by nationalism continued to cause Europe problems. Some sources suggest that the con- servatism of Franz Joseph’s govern- ment, and an unwillingness to federa- lise the empire, were major causes of the downfall of the monarchy. Do you agree, or was merely nascent nationa- lism to blame? If the aim is to find a distilled cause of the First World War then that is undoubtedly nationalism. But what also played a role is that once war broke out, there was no longer time to enact numerous planned reforms. So the moment war broke out, the politicians could no longer carry out their former decisions. Rather, events were placed in the hands of the military, and civilian reforms fell by the wayside. Right from the outset that created discontent. But yes, growing nationalism was the main reason for the war; but, as we can see now, this has been a direct theme throu- ghout our history from the time of the French Revolution all the way through to today. And today’s EU? Once again, I believe that it is the small eruptions of nationalism which are bringing crisis to this bloc. During a debate on the EU Constituti- on, your late father, Otto, said that the body should grow naturally like a tree and not super-fast like an American skyscraper. Is that an example of Habs- burg conservatism? I am not sure if that can be described that way. I think rather that it repre- sents a basic notion of conservatism of the kind we know from the English constitution or from Edmund Burke, which described the causes and influ- ence of the French Revolution, meaning the consequences on the institutions of state, Europe and the world. That is a form of conservatism which our family understands; a conservatism, which does not emphasise adheren- ce to traditional forms, but rather an emphasis on values. And when such values are important, then to also utilise modern forms to attain them. So how would you define the difference between patriotism and nationalism? Patriotism is the diametric opposite of nationalism. It is tied to the character of a person, and stems from internal emo- tions. It is a positive state of mind; a dis- position towards one’s own culture, country, native soil, and surroundings. Nationalism, on the other hand, stems from the head and not heart. And this rational sense of superiority lacks the opportunity to spread from the fringes Franz Joseph I and Crown Prince Otto (father of Karl von Habsburg)

12/13 face to face into the mainstream – to the civic are- na. I can be a Salzburg patriot – that is where I live; I can also be an Austrian or European patriot. But I cannot be a European or Salzburg nationalist. Nationalism is always custom-hewed towards a particular country and has an internal negation. Nationalism says: my nation is the best, and thus other nations are worse. And that is not a view with which one can work constructively. Monarchies rule countries within the horizons of subsequently handing over power to their descendants. Po- liticians have to think about the next election, and the possibility of losing their mandates. And surely that has to influence the scope of vision, deci- sion-making will, and the will to take risks, don’t you think? You are right. I am convinced that is the case. Franz Joseph is a typical example of someone who helped to determine the nature of the political sphere and social environment of his country for three generations. Larger dimensions also existed, but it is alwa- ys important to not just follow such and such figures only in the context of their particular life-spans. One also needs to assess overall developments within the framework of both past and future generations. If we look at the current system of national debts, then that represents nothing less than ignoring future generations, because what we are using up today won’t be available for others tomorrow. It is a form of extreme short-sightedness and a failure to honour the needs of future generations. Since the age of four your father was raised with a  view to one day assu- ming the Habsburg throne and later, after 1918, to simply head the House of Habsburg. When did you discover that you could have one day become emperor? You know, I am unable to really an- swer that question. Did I ever feel like this or that? I have never been anything other than what I am! I am who I am and history has placed me in the role that it has. That is how it is and my children feel the same way. I have no idea as to when I first realised the historical import of my family. But thanks to my parents, even as a small child I experienced nume- rous events that reflected a particular role. I hope that my children see it the same way, and will continue to pass this on, because leading by example is the best principle you can offer your children. You were born in Germany in 1961 and first saw Austria in 1968 after your father, Otto von Habsburg, renoun- ced any claims to the Austrian throne or to former Habsburg assets. So was there such a strong fear in Austria of the Habsburg myth to require these concessions? Looking back at the end of the 1950s and start of the 60s, it was natural then that a fear component existed, which even led to demonstrations. From today’s perspective I can say that I was actually quite proud of all that my family had achieved. Even back in 1961 my father wanted to sign such a declaration, but the government ignored the proposal. So everything had to end up going through the courts, through which we de facto had to force a path for ourselves back into the country. We returned to Austria because that was the only part of our home [meaning of the former Austro-Hungarian Empi- re –Ed.] that was accessible to us. The other countries were unreachable because they were communist count- ries. But I can say with certainty that my father, my siblings and I would feel just as fine living in any part of the former monarchy as we feel living here. I believe that it is important to mention that. Today, you embody the Pan-European movement. In what way does pan- Wedding of Karl von Habsburg’s grandparents - Charles I and Zita of Bourbon- Parma (1911). Right Emperor Franz Joseph I., after his death in 1916, Charles I ascended to the throne Photos: archive

-Europeanism differ from today’s EU structures? I believe that it begins with our orien- tation and values, and is helped by the fact that we are not a party political movement. That enables us to possess a higher horizon for the propagation of European aims and values, and to work in that direction. During our existence as the Pan-European move- ment, we have managed to showcase such values on many occasions. His- torically we are the oldest movement pushing for the unification of Europe. It was we who openly opposed the Iron Curtain, and who declared how unnatural a formation this was in the heart of Europe. And we did so at a time when the great pseudo-pro- phets à la Willy Brandt were saying that whomever dares dream of a uni- ted Germany needs to have their head examined. That was a moment when we said that there are two expressions which should not be used in politics: never and always – because these are concepts which belong in the hands of religious practitioners. And that is why those who stated that both Euro- pe and Germany were for ever divided were ultimately proved wrong. In our activities in the parts of Europe not yet in the EU we emphasise that pan- -Europe means all of Europe and not just the [current] EU. Can you describe for us your schedu- le today, and also for the ensuing few days? It is mainly focused on two areas – the first, the aforementioned Pan- -European movement, and then the Blue Shield, an institution which is focused on the protection of cultural treasures in danger due to armed con- flicts. Last week, I was back again in Lebanon to discuss the issue of Syria’s cultural treasures. Yemen and Libya also represent significant countries in this regard. But I also partake in other activities. For example, I re- cently went with my family – meaning my extended family of around 300 people – to Rome, where we met the Holy Father in the Vatican. In two days I am flying to Hong Kong for a congress and that same weekend I am going to watch my son compete in car racing in Macau. And then, after that, I have to go to Miramar for a few days to discuss issues per- taining to minorities. So I certainly am not bored. In the Czech Republic, the word “po- litician” almost carries a  pejorative connotation. Is that because of the profession or merely its execution? Political leadership represents the biggest problem. We basically lack any real leadership figures – and that applies to both Europe and the US. Right now, both in Europe as an in- stitution, and in EU member states, no-one can really claim the mantle of leadership. At that comes at a time of overall uncertainty as well as the menace of Russia to the East. For example, look at what is going on in Ukraine – all the while a typical leader figure by way of Vladimir Putin is in power in Russia. And that then causes us distress. We had leader types in power long after the Second World War; and they carried over those ex- periences, knew the dangers, knew what they meant, and fought as hard as possible to avoid a repeat of that. When I hear young people now saying “We need a firm hand” then on the one hand I find that objectionable, as I know where that can lead, but on the other we really do need someone who possesses the charisma, and who can use that to really lead according to the needs of the times. I fear that the current atmosphere of disagree- ment represents the weakest aspect of European politics. You are a  politician yourself. Or do you consider yourself an active ci- tizen? Of course I am a politician. Undoub- tedly. My family has been in the trade of politics for more than 800 years. Which is why I am not bothered by the current pejorative character of the notion of politicians. We have to get past that, and that will succeed if we have strong leaders in place. Qua- lified people. Because right now we are stuck in a vicious circle. The more inept politicians ruin their trade, the more less qualified people move in to fill the vacuum. The EU is in crisis as nations retreat into themselves, seemingly signa- lling a potential break-up of the bloc. Is that not similar to the way it was when the Austro-Hungarian Empire fell apart? I believe that it is important to learn the lessons of that time and under- stand that there are indeed parallels between the EU and the old monar- chy. I also believe that a historical perspective on the monarchy is ex- tremely important to have, so that we can learn about the mistakes to avoid, and what to prevent, thus pre- venting a repeat of history. We have the opportunity to make a strong con- tinent out of Europe, but we have to avoid taking certain paths. It is important for me when I hear: “We know what nationalism led to and where it might lead again.” We also see it in the structures of the EU; the European institutions, the directly elected parliament, or the Commi- ssion, or the European Court – those are institutions that are working. But the representatives of nation states, meaning the representatives of the European Council, don’t think along European lines, but rather along the philistine levels of the nation state. They lack a European dimension, but despite this they try, from the position of a nation state, to gain both executive and legislative po- wers. That is harmful. One needs to think on a European level to apply the principle of subsidiarity, and to never forget that this is not a political but rather a social principle. And if their politics mirror that then we won’t see tensions between states and other bodies. But right now it looks as if the nation state is playing too strong a role. Taken from the magazine Patriotism is the diametrical opposite of nationalism Karl von Habsburg with his father Otto von Habsburg, who died in 2011, and son Ferdinand Zvonimir von Habsburg, the eldest son of Karl von Habsburg and head of the House of Habsburg-Lorraine

food 14/15 Call of the wild Photo: Ondřej Košík Taken from the magazine With au- tumn, appeti- singly lean game meats once more feature prominent- ly in our cuisine. Who would not appreciate a tas- ty sirloin dish or a wild boar schnit­ zel? Štěpán Vašák Slice the meat into small steaks and smear with a  mixture of thyme, pressed garlic and olive oil. Salt, pepper and coat with plain smooth flour, beaten egg with unflavou- red yoghurt and, finally, breadcrumbs. Fry the coated steaks in lard on both sides until gol- den brown. Serve with boiled potatoes, along with chives and butter. Wild boar tenderloin schnitzels 4 SERVINGS PREPARATION: 40 minutes 1 kg wild boar tenderloin 2 cloves of garlic 1 handful of dried thyme 2 tbsps olive oil Salt and pepper 2 eggs 1 tbsp white yoghurt Plain smooth flour and breadcrumbs for coating Lard for frying 600 g new potatoes Chives Butter

society Teambuilding amid the roots, apples and cucumbers A nine-strong group of volunteers from the tax department of consultancy PwC ČR arrived at the Startujeme [“We Participate”] farm enterprise, which runs the on-premises café at the firm in Prague. They helped to gather the last of the apple fall, weed flower and seed beds and harvest late autumn cucumbers and tomatoes. Produce from the farm is delivered to the PwC Café. The chance for some teambuilding out in the sticks has since the start of this year been taken up by five teams from the consulting and advisory company. All in all, they have put is some 448 hours of voluntary work Photo: JA Czech Photo: PwC ČR High school students paired up with execs during Leaders for a Day Nonprofit JA Czech organised Leaders for a Day, bringing together aspirational school students and companies. Each high school student was paired up with a senior manager for a working day, meaning 10 managers “shadowed” the 10 students sent out to various firms. Pictured left is Kristina Michalsky, director of Microsoft CR’s Consumer Channel Group, who spent the day supervising student Nikol Hrubíšová. The initiative was supported by the Citi Foundation, the corporate foundation of Citibank advertising WWW.E15.CZ 15 MINUT PRO EKONOMIKU A BYZNYS S NÁMI VYDĚLÁTE 256373/20

16 diversions Tremendous indiscipline Even North Korean children can be impossibly boisterous, cacophonous and ready to shove and jostle. A fine display of indiscipline was there for all to see when Kim Jong-un made his first visit as North Korea’s supreme leader to Samjiyon County. In such circumstances, it seems, the young ones’ overriding emotions are absolutely acceptable. Kim Jong-un himself is thought to have attended a school in Switzerland under a pseudonym invitations picture of the week Photos: Archive Photo: Reuters EXHIBITION Time After Time at MeetFactory Nietzsche’s concept of “eternal recurrence” is the exhibition’s starting point. Artists from various parts of the globe give expression to the notion that time flows by in eternal circles – and that everything keeps recurring for ever. Prague’s MeetFactory. Until 8 January. CINEMA Egon Schiele: Death and the Maiden A 2016 biopic of turn of the 20th century Austrian figurative painter Egon Schiele, is driven by beautiful women and the drawing to an end of an era. And he’ll sacrifice Love and Life for his Art. Various cinemas. FILM FESTIVAL Asian films at Lucerna Cinema Take in some of the greatest hits from the Far East. A festival highlight is apparently the Korean bloody zombie night! Audiences can enjoy some striking movies to have come out of South Korea, Taiwan, Japan and China. Lucerna Cinema, Prague. 7-10 December. CONCERT Czech Radio Jazzfest at JazzDock Now Vs. Now from New York is billed as the main attraction at this year’s edition of the jazz event. Their music has been described as “weird, dreamy, unpredictable and sinister”, but also as “progressive, funky, raw, futuristic, trippy.” It’s your call. Prague’s JazzDock. 6 December. CONCERT Christmas concert sat St. Salvator Church The church, one of Prague’s Baroque architectural gems, will resound with works by Antonio Vivaldi, Antonín Dvořák and other greats. Concerts will take place at the church near Charles Bridge until 29 December. 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.