Final Word from Thursday, April 13, 2006
There's no turning back the electric meter to counteract mounting criticism of ČSSD for having rapidly increased energy prices, so the government has decided to attack a ČEZ board member instead. Vice Chair Alan Svoboda has been charged with insider trading and could go to prison for 2-8 years. Svoboda did a stupid thing by buying shares just days before market-moving information was released, but he did it openly and showed contrition. A hefty fine from the SEC seems justified, but prison? Svoboda is a scapegoat for the government's bad energy policy and is another example of how ČSSD is having to go into damage-control mode as the elections approach. Last week Jiří Paroubek distanced himself from his beloved Communists, this week it is ČEZ. Next week it might be Miloš Zeman, David Rath or even the EU. It's too early to say for sure, but we might be witnessing the collapse of ČSSD's election campaign. [Czech Republic European Union insider trading Securities and Exchange Commission]