The unmaking of Ferdinand Piëch How the VW legend came to be unceremoniously ousted profile pages 10–11 No room at the courthouse 70 Issue 70 l newsstand price CZK 24/¤ 1 l www.e15.cz 9 771803 454314 Monday, 11 May 2015 Ministry of justice has proposed to build a new home feature pages 12–13 Bali padda: We rebuilt lego, brick by brick Though Lego is branching out into the virtual world, its core business will remain classic brick-building, says Lego’s Executive Vice President Bali Padda B ali Padda is a small, inconspicuous, greyhaired Indian man. He speaks in a slight, but deep voice; the British accent clearly betraying that he left his place of birth for the southern English county of Kent a good many years ago. Outwardly, there is little to betray that Padda is number-two at Lego, the largest toy manufacturer in the world. His demure, gentlemanly manner is in strong contrast with the extrovert, jocular manner of Lego’s Danish CEO Jørgen Vig Knudstorp. Our interview begins with Padda handing me a plastic figure bearing his likeness – it has grey hair, green trousers, is emblazoned with the name Bali Padda, and even features his telephone number. It turns out that such figures are used at this firm instead of business cards Do you know what Kladno was famous for producing before Lego set up a manufacturing facility here? No, I don’t. But each time we travel from the airport, to our right we see a huge, truly monstrous-looking factory. I often wondered what they make there. But I’ve been told the factory is closed. Perhaps you can tell me more... That factory went bankrupt. But it used to be a steel plant, and was the biggest employer in the town. They used to make steel ingots in Kladno. Now Lego has been here for 15 years, employing 2,000 people in the Czech Republic. Continues on page 8 Photo: Hynek Glos Petr Horký 2/3 news New army chief faces uphill battle Igor Záruba’s notebook General Petr Pavel’s successor wants topped-up numbers in combat units New Chief. Lieutenant General Josef Bečvář (left) assumed the top military rank after predecessor General Petr Pavel (right) was elected as the next Chairman of the NATO Military Committee Armed forces Pavel Otto W Petr Weikert Things are hotting up where the Port of Hamburg lot owned by the Czech state is concerned. The transport ministry, intent on reconstructing the facility, wants to revoke an existing contract with the current lot tenant, EkoLogistic. But if the company has to leave, it will apparently demand compensation amounting to millions of crowns from the Czech state. EkoLogistic has an agreement to lease the Hamburg infrastructure until 2021. Company executives are maintaining they have invested millions of crowns in emergency repairs. Photo: ČTK to reach full strength within seven years. The slight increase announced for the defence budget is intrinsically linked to the ability to allocate the funds available in an efficient and timely manner – these objectives have always troubled the defence department. Meeting the fresh goals will be an onerous demand, especially given the fact that defence ministry heads are largely yet to make it past the talking stage. For example, the long-discussed tender for 3D radars is still to be called. Bečvář would also like to acquire new or modernised equipment for the 7th mechanised brigade which is stuck with outdated caterpillar-tracked infantry carriers. Furthermore, he does not want to neglect the artillery units whose self-propelled Dana howitzers entered service back in the 1970s. Cyber warfare defence lab announced Scientists and security experts dedicated to researching, developing and testing defences against cyber-attacks will in future be able to turn to a state-of-the-art computer laboratory commissioned by the Faculty of Informatics at Masaryk University in Brno. The government has in recent years upgraded cyber-security to a higher priority, given the ever increasing number of new risks and spates of major hacking attacks on state security organisations around the world Photo: ČTK Pilsen last week completed a week-long Festival of Liberty celebration of the 70th anniversary of the end of WWII. The West Bohemian city was decked out in Czech, American and Belgian flags. It was American soldiers led by the celebrated General George S. Patton, together with some Belgian units attached to the US army, that liberated Pilsen. The week included the unveiling of a 9.5m-high steel sculpture of the general, a convoy of Second World War jeeps and tanks and a dozen American and Belgian veterans addressing 300 teenagers from local schools on issues such as safeguarding hard-won liberty Investigators probing STV’s armed forces deals Pavel Otto Criminal prosecution offices have started to take an interest in suspicious activities of STV Group arms dealer Martin Drda in relation to the military munitions base in Týniště nad Orlicí and deals his company arranged with the armed forces. Investigations commenced less than two months after the police raided the headquarters of businessman Jaroslav Strnad’s Excalibur Group, which has been the main rival of Drda’s company for some years. It was Drda’s letters to ex-defence minister Vlastimil Picek during the first half of 2013 which triggered the case in which several officials face accusations in connection with the selling off of tank and armoured vehicle engines. Now it is Drda’s STV which has a problem with the law enforcers. Like Excalibur, STV repairs and exports old army equipment, while it also specialises in munitions trading. Play your heart away – so my parents told me when I was a boy. The sentiment mixed resignation and permissive benevolence. But in Las Vegas, they really know the meaning of “play”. Nothing new there, but the Sin City has made for an intriguing backdrop to this May’s EMC IT summit, with 14,000 attendees. Suddenly two very distinct kinds of gamers were mingling, alongside tech nerds, suits and Silicon Valley types. Examine the dress codes. Vegas gamblers are usually far less Joe Pesci or Bond, and far more T-shirt, shorts and flip-flops. The IT types dress far more smartly. But these two far- removed groups share one thing – they both like to play. Playfulness is part of human nature. But how far to take it. Slot-machine players are limited by their pockets. IT types must address growing client fears on the use of personal data. And there is a third group. Sharing the slotmachine addict’s hypnotic gaze, they stare at their smartphones nonstop; an almost cybernetic existence turning on ever-growing data. Gambling addicts and IT obsessives comprise small groups – but the smartphone zombies are growing in number. Look up. See if you can spot the blank stare, the twitching thumbs... Zdeňek Pečený’s notebook Weak is strong Whom does it help? Those in favour of a strong dollar, please raise your hand. My hand stays still. And so do those of US firms; a burly dollar costs them money. The last time the dollar was strong, USD 2bn was wiped off Apple’s quarterly profits. But four out of five Americans don’t even have a passport, so the impact on foreign travel is negligible. And given the fact that the US economy, with its 300 million consumers, is highly self-reliant, similar concerns about a strong Photo: Martin Pinkas Port Hamburg leaseholder gets the hump Smartphone zombies City remembers its 1945 day of jubilation Photo: ČTK hen Lieutenant General Josef Bečvář was appointed the new Chief of the General Staff by President Miloš Zeman, his priorities were clear-cut: issues surrounding the lessthan-optimum military personnel numbers – thousands more soldiers are needed – and the need to promptly execute investments such as new radar and helicopter acquisitions. Bečvář assumed the top military rank after predecessor General Petr Pavel was elected as the next Chairman of the NATO Military Committee, a job he is to begin in June. “Some units are severely below the strength necessary for the efficient performance of their military tasks,” said Bečvář, addressing members of the Defence Committee of the parliamentary Chamber of Deputies. The army currently lacks up of 5,000 men and women in uniform. Bečvář would like to recruit 1,500 this year, followed by another 2,000 in each of the following years. The new Chief of the General Staff plans dollar impacting exports to the US are also misplaced. Yet European and Asian tourists are left most unhappy. Their holidays across the pond are now 20 percent more expensive than they were six months ago, and almost 50 times more expensive than four years back. Electronic goods prices have also been hit. If the ECB aborted its policy of printing money to help Italy and Spain, thus weakening the euro but strengthening the dollar, we would all be better off. Suspicious activities. STV repairs and exports old army equipment, while it also specialises in munitions trading Investigators have focused among other things on the equipping of laboratories for the testing of munitions, which were supplied by STV, and on deliveries of 125-millimetre munitions for the tank battalion based in Přáslavice, near Olomouc. “The provided munitions were apparently not entirely new, so not in line with what the army requested. Looking at the data distortions they allegedly had to occur in Týniště,” said a source in the military police. E15 weekly, economic and business newsmagazine | www.e15.cz | Tomáš Skřivánek, Euro E15 Division Director | Igor Záruba, Executive Editor, [email protected]; Marian Hronek, Editor, [email protected] | Contacts: Zuzana Faltová, Secretary | Call (+420) 225 276 461, | Postal address: Mezi Vodami 1952/9, 143 00 Praha 4 – Modřany | Published by Mladá fronta a. s., Mezi Vodami 1952/9, 143 00 Praha 4 | David Hurta, Chief Executive Officer | Advertising: David Korn, Sales Director, [email protected] | Production and distribution: Soňa Štarhová, Director, Call (+420) 225 276 252 | Marketing: Hana Holková, Director, Call (+420) 225 276 276 Registration E 21420 E15 weekly, ISSN: 1803-4543 | Reprints & Permissions: The Publisher will consider requests for reprints or any other reproduction | Printed by: EuRoPRINT a. s. 4/5 business Sitting on lithium worth CZK 40bn up and down Supplies mined from deposits in the Ore Mountains could compete on the world market Photo: Reuters T he mining of battery-grade lithium carbonate under the Ore Mountains [Krušné hory] in the locality of Cínovec is becoming a realistic prospect. The estimated production cost has fallen below the key threshold of USD 2,000/tonne, meaning the deposits near the northwestern border with Germany could boldly compete with output mined by South American market competitors. The release of feasibility study results from Czech firm Geomet have sparked huge interest from investors in Australian mineral exploration company European Metals Holdings, the parent company of Geomet. Its shares on the Australian stock market strengthened by nearly 300 percent to 24 cents over the course of a week. Geomet is also starting a further CZK 100m exploration phase. “If in Europe we can manage to produce lithium at two thousand dollars, everybody will take note of us,” Otto Janout, co-founder of Geomet, told E15 daily. Vladimír Šolc CEO, Sberbank CZ The third element. Insatiable demand for lithium is spurring mining companies to scour the globe’s remotest corners (pictured Bolivia) MINING David Vagaday The market price for lithium carbonate has over 13 years quadrupled to USD 6,000/ tonne. The deposits beneath Cínovec have been estima- ted at 330,000 tonnes. Their market value would therefore exceed CZK 40bn. European demand for the important industrial chemical could be met for two decades. The profitability of the potential mining in Bohemia would be positively influenced by the sourcing of potassium sulpha- The bank last year earned CZK 383m, which amounts to year on year growth of more than two-thirds. The figure is also a record in the history of the Czech branch of the Russian bank group and it was never bettered by predecessor Volksbank. te – a required raw material in the production of artificial fertilizers. The Cínovec lithium deposits are problematic in that they have a low metal content in the ore, so Geomet must count on income from the sale of by-product commodities produced during the lithium mining. The planned profits from sales of the potassium sulphate would lower the lithium production cost to a competitive level. Europe is entirely dependent on lithium imports, which mainly derive from South America, or China if need be. The largest lithium deposits in the world are located in Argentina, Bolivia and Chile. Mild winter costs RWE small fortune Jan Stuchlík A slump in fees charged for gas storage in underground reservoirs coupled with a very mild winter have driven RWE Czech Republic profit for 2014 to a level one-third below what was anticipated. In 2013, the energy company recorded a profit of CZK 10.5bn in the Czech Republic, but last year’s figure came in at just CZK 7.4bn. However, the company is planning to recover one billion crowns through increased distribution charges in 2016. Above-average temperatures during last winter reduced gas consumption in the Czech Republic by 15 percent. In combination with falling gas prices, the lower consumption cut the group’s revenues by one-fifth to CZK 43.5bn. Yet the com- pany is facing an even more pressing issue associated with its underground gas reservoirs, which are capable of storing some 3 billion cubic metres of gas. The diminishing difference between winter and summer wholesale prices has pushed gas storage fees down. RWE was already facing falling gas consumption in the Czech Republic before last winter’s weather became a problem. To a degree, it has managed to offset the decline through sales of compressed natural gas used to fuel vehicles. “We have been in discussions with the environment ministry on ways of applying European funds to revive the 330,000 consumer gas connections that have been idle,” said Martin Herrmann, RWE Česká republika CEO. Helika at the UAE school project ‘gates’ Visualization: Helika Czech project design office Helika is a step from commissioning a construction company to build a school for about 3,000 students in Abu Dhabi, the capital of the United Arab Emirates. The project, which is at the conceptual design phase, is required by authorities to reflect some special cultural requirements, such as separate facilities for boys and girls Did Floyd Mayweather, Jr. knock out Avengers? Photo: Falcon Second-place was the best Avengers: Age of Ultron could do at the US box office on its opening weekend. The film’s debut in US theatres generated more than USD 84.4m in ticket sales, meaning it had the second-highest single-day gross of all time. According to Boxofficemojo.com, the actionadventure-sci-fi film also scooped more than USD 187.6m at the box office over its first three days. Despite the efforts of its mightiest heroes – including Iron Man, Hulk, Thor and Captain America – Age of Ultron was pipped to the post by Marvel’s The Avengers prequel released in 2012. Marvel owner Walt Disney may thus be mildly disillusioned. Concurrent major sports events, such as the Floyd Mayweather Jr. vs. Manny Pacquiao “Boxing match of the century”, may have been to blame for the near-miss A151003600 Libor Janoušek Boss of Brokerjet ČS Unprofitable Brokerjet Česká spořitelna is scrapping its Můj makléř [My broker] service, citing poor interest from clients. The internet brokerage itself is continuing to operate, but observers are speculating that there may be market consolidation ahead in online investments. a dv e r t i s i n g 6/7 opinion Coalition faces impasse over budget No wonder then that this situation, which the billionaire ANO leader enthusiastically embraced, is now being used to make life difficult for Babiš by his coalition partner and PM Bohuslav Sobotka could have been left out of the number-crunching taking place between the ministries. However, last January’s coalition deal was instead loaded with generalities – some time in the future, we would “just hammer out” our differences. This enabled the Social Democrats [ČSSD] to honour spending commitments and ANO to honour its promise to not raise taxes – especially on Agrofert. Instead, Babiš was, within a year, going to clamp down on tax avoidance, reaping tens of billions of crowns in extra tion partner and PM Bohuslav Sobotka. The political aim of ČSSD is to raise taxes in a fashion that shields its voters drawn from low-income individuals and groups whose income is tied to public spending. Conversely, Babiš, elected by right-leaning voters, is intent on resisting such a scenario. Presently, the Social Democrats are pushing for a second tax bracket for large firms. Which is certainly no less damaging than sector taxes. Relatively low corporate taxes serve as a pillar of cur- still insufficient to begin to pull down the Czech budget deficit. If this is even being mulled in the talks on next year’s budget, then it represents a stunning memory lapse of our politicians. After all, we’ve already paid a heavy price for such post-2008 socialist spending practices. An encore would be highly depressing. Sobotka should realise that the future of Czech economic prosperity is far more important than the allure of an “I told you so” victory over Babiš. The labour ministry has issued a near halfa-million-crown tender for help widening its footprint on TV, radio and newswire service ČTK. The basic campaign –depict a labourer on benefits as a sympathetic person who is professional, knows what he is doing, and does it well. The campaign peak is to feature Minister Michaela Marksová on the main Czech Television evening news. Seems some ministers are a bit deluded as to what is and is not newsworthy... President Zeman has boasted about his own good health during a tour of Central Bohemia. Though conceding he suffers mild diabetes and peripheral neuropathy, he implied he’s otherwise fit as a fiddle: “My lungs are absolutely clean [he’s a smoker], and I have the prostate of a virgin,” he declared. Perhaps, like me, dear reader you wish you’d been spared that nugget. Sailing the Vltava, on the decks of the Šumava, the trays piled with Agrofert doughnuts, the ANO party founded its youth wing. Members aged 15-35 are sought. Naturally ANO chief Babiš was at the event, too. It was May Day, after all. joke ad ve r ti s in g A150000824 S ome tough back and forth between the three coalition parties over the first draft of next year’s budget is to be expected. But what is unusual is that this time the dispute is over the kind of fundamental principles which should have been ironed out in the coalition agreement. That way, politics rent Czech growth, and are spurring the gradual recovery of private sector investment. Embarking on such policies at a time when the EU-wide economy remains stagnant is foolhardy. In fact, one other, even less desirable option is apparently also on the cards. It is something that would send an even worse signal to foreign investors and the financial markets – namely, raising corporate taxes and accelerating state spending growth at a time when economic growth is The Social Democrats appear unable to fathom that for the ANO-run finance ministry efforts to scrap the “supergross wage” [untaxed wages plus social and health payments] are far less important than unmasking “irregularities” in the returns of each taxpayer, who in the past merely brushed past the state authorities. And if that wasn’t enough, it was actually the Social Democrats who permitted TV Barrandov to “malign” Monika Babišová, wife of Andrej, for allegedly seeking to avoid paying customs duties on a handbag after the pair’s return from their recent US trip. The Christian Democrats also appeared to stay mum on the matter. But they are making noises about proposed spending cuts in the 2016 budget. And still the state is short on the tax receipts side... Let’s give Babiš another chance to churn his numbers. Pavel Páral revenue. This, the promise went, would yield a bright new future for the country, and everyone would be happy ever after. Naturally, no tough and unpleasant reforms of any kind would be needed. The spending began right away; public sector pay was hiked, more funds were poured into the black hole of healthcare. No wonder then that this situation, which the billionaire ANO leader enthusiastically embraced, is now being used to make life difficult for Babiš by his coali- This is how we live here Photo: ČTK Let’s keep our fingers crossed that Finance Minister Andrej Babiš holds firm, and that the Social Democrats realise the government should not spend more than the revenues generated by economic growth Jana Havligerová’s political diary 8/9 cover story We rebuilt lego, brick by brick Continued from page 1 Yes. People here have proven to be very technically gifted. Prior to joining Lego you worked in the pharmaceutical industry and also for footwear maker Timberland. Was it a shock to join a cult toymaker producing a very specific product? If you look at it from the point of view of a supply chain, and logistics, then the challenges are the same. You buy raw materials, process them in some way, and then sell a finished product. But the culture at Lego was completely different. Firstly, it is a family firm, which fosters a very different dynamic and relationships. Secondly, the product is a highly entertaining one. Why do you think they hired you specifically? You would have to ask my boss [laughs]. I started out in a factory in the US. This was at a time when Lego was facing near-bankruptcy. But then a new CEO, Jørgen, came on board. Later, in 2005, he asked me if I would join the [management] team. Photo: Hynek Glos In communist Czechoslovakia, Lego was an expensive luxury. Were you able to play with Lego as a child? I come from India, and when I was born there was no Lego available there. I probably first encountered it in England, following the birth of my son. That was Lego Duplo; my son was around two-and-a-half then. I also remember how I bought him a Technic [a more technically advanced Lego series –Ed.] building set when he was around nine. And that made me fall in love with Lego too. That was around 20 years ago. We didn’t plan our rapid growth. It just happened neglecting its core business – namely Lego bricks – and focusing on other products instead... That was one of the reasons. Back then, many indicators were suggesting that children were developing shorter attention spans. Meaning they wanted quicker gratification. So we started To what extent were external factors producing larger components, which responsible for Lego’s woes back in the weren’t really Lego. Also internally we lacked discipline. So we ended up with early 2000s? We were internally responsible for a pile of problems. our problems. They would have come about, irrespective of external factors, Was that the toughest period in the such as an economic crisis. company’s history? From my personal experiences, cerWhat, in your view, were the root cau- tainly. There was also a smaller crisis back in the 1990s. But nowhere near as ses of the troubles? Poor focus. Lack of internal coope- serious as that which we encountered ration. An absence of direction. It was in 2002 and 2003. many things combined. What managed to reverse the slide? Based on what I have heard and read New leadership. A return to our roabout Lego, one of the main past pro- ots. One of the steps taken by our new blems stemmed from the company CEO was that he went out and talked to our fans and customers. And they were the ones who told him that Lego had stopped being Lego. And so he set to work, and also initiated a major staffing shake-up. And this brought massive growth. As of last year, you are the largest toy manufacturer in the world. We didn’t plan this growth. This growth just happened [laughs]. facility in China. This August we plan to open our own packaging plant and next year we will open a plastic pressing plant for Lego bricks. It is a complex process. But when we talk to Chinese mothers and their children, they feel the same way about these building bricks, and are just as entertained by them as are children in Germany or the Czech Republic. We believe that Lego is a globally comprehensible product. What matters, however, is to correctly read the operation of a market in a given country. As we are talking now, the company is hard at work developing a China strategy. When I fist came across Lego as a boy, there was Duplo for toddlers, and then for children of my age, there was Lego Castle, Lego City, and Lego Space. But that was about all. Today, there are countless Lego themes. How do, for example, themes such as Elves or Bionicle, come about? We have 200 designers at work in Denmark. You sit them down in one How successful are your efforts to ex- place and let them be creative. They pand into Asia, and China specifically? then unleash a flood of ideas for proFor us, this is a defining challenge. ducts, which in theory would be super We are preparing to set up a production to produce. Last year’s hugely successful The Lego Movie must have had a major impact too. The film created a kind of halo effect. It created new characters, but actually ended up impacting our entire product range – Lego City, Lego Star Wars, etc. It lifted up the whole brand. Will Lego Dimensions also be produced here? No. That is a joint effort – the sets are sold and distributed by US studio Warner. So we produce the components and then send those to them. To what do you attribute Lego’s success? Those building sets have been with us for a very long time. Born in India. Currently lives in the county of Kent in southern England. Previously served at footwear maker Timberland and pharmaceutical firm Glaxo Wellcome. Joined Lego in 2002, where he rose to become Chief Operations Officer and Executive Vice President, Operations. He is married with two adult children. Photo: Profimedia Bali Padda: For us, the quality of the product is paramount. You said that you first came across Lego when you were very small. You perhaps still have some bricks hidden away somewhere. And those bricks must be able to fit exactly into the bricks we produce today. Product quality and employee training levels are key for us. Which is why we make an effort to make all our production facilities look the same – table coverings, air ventilation, floors, etc. There can be no differences between a plant in the Czech Republic and China. The Lego Dimensions video game is a They must be the same as Lego’s home relatively new idea from Lego. With factory in Billund, Denmark. this, you are entering the Toys-toLife genre, which merges physical How many bricks does the firm make? We made more than 60 billion comtoys with a virtual space. How important do you think this product line ponents last year. Our machines run will be? Will it not lure children away 24-hours a day, seven days a week. from actual brick-building? It is an initial step; an experiment, What happens to all those bricks? After which will tell us more. We will see all, they are practically indestructible. Yes, that’s true. Dividing up all those where it takes us. bricks you could say there are more Did you willingly enter into this field, than 80 bricks per person on this plaor was it a reaction to competitors’ net. A number of years ago, I visited a activities, such as the Skylanders supplier in Germany. He brought in his video game series from Activision, old Lego building set, which must have which is reaping major successes in harked back to the 1960s. this sector? It was entirely our own decisi- Which Lego products are seeing the on. Nonetheless, we are observing most growth? an ever-greater fusion between the They all are. If you wanted a global physical and virtual worlds. We are top five, then four of these would be making sure that we have a stake in classic Lego themes. We have been very that. But we believe that the real, tac- pleased with our Lego Friends series. tile world will continue to exist. That While Lego is a unisex toy, it has always serves as our foundation. Anyone who been viewed as predominantly a boy’s has children of their own will know toy. But we’ve undertaken many efforts what it is like to have them spend too to break in to the girls’ toys market, and much time on their iPads and compu- Friends has achieved just that. ters. For us, it is important to have the virtual world connected to items, Where would you like to most expand which a user built previously in the in the near future? In Asia, where we are presently physical world. building a plant in Shanghai. But we Will the entire family be able to play must also pay heed to maintaining our Lego Dimensions? tempo in the US and Europe. We canIt will be a multi-player game, but not neglect our roots. only on a local level, not via the Internet. Which region is least familiar with Lego products? The Lego components produced in Africa, for sure. We are in Asia and Kladno – where are they sent to? Latin America, but in terms of Africa Here the entire range of Lego toys we only have a presence in South Afriare completed. We pack the building ca. From there, travelling northwards sets, and then they head to a distri- in the continent, our presence is pracbution centre in Jirny [east of Prague tically non-existent. –Ed.]; from there they travel to all of Europe and to Asia. But in about a year, it will only serve Europe, as Asia will be covered by a Chinese plant. Bali Padda (59) How do you choose the right ones? We select the ones which we know will be able to tell a strong story. We also consult with children, gaining feedback from them during the early design stages. Asides from the physical products, we also devise stories, films and games. After three or four years, the final product emerges. For example, the development of Friends took around four years to get from the drawing board to store shelves. lego’s Phoenix story In the early 2000s, Lego faced near-bankruptcy – but it has risen to become the world’s largest toy producer Petr Horký The business story is so well-known it has almost become myth. Or rather it has come to serve as a cautionary tale about a company forgetting to pay heed to its core business. Back in 1932, Danish carpenter Oleh Kirk Christiansen started making wooden toys at his factory in Billund. But as the Great Depression set in, orders for toys declined, and Christiansen was forced to also produce furniture to stay in business. But toy-making continued as a sideline, and in 1934 Lego was born, the word deriving from the Danish words “leg” and “godt”, meaning to play well. Plastic arrived in Denmark at the end of WWII, and in 1947 the Lego company acquired its first moulding machine. This led to experiments that created the famous interlocking bricks, which were first offered to customers two years later. Initially, the plastic version of the bricks did not sell well. They were updated with their now iconic, and subsequently patented, hollow studs in the early 1950s. Lego finally abandoned wood entirely following a warehouse fire in 1960. Throughout this decade, Lego continued as a medium-sized business. It employed 450 staff, and expanded into also producing bricks in the US. In 1963, Lego switched to making its bricks from thermoplastic polymer ABS. A year later, Lego added its first assembly instructions to Lego kits, a practice which also continues to this day. In 1968, Legoland entertainment park, built entirely from Lego, opened its doors in Billund. A crucial year in the firm’s history was 1978. It saw the creation of the Lego “minifigure”, a yellow-faced human figure with bendable arms and hips. The smiling character served to define the Lego experience for children. The figures also enabled Lego to branch out into various themes such as Lego City, featuring trains, boats, airports, pirates, spaceships, and so on. But by the 1990s, Lego appeared to lose its focus. From 1992 onwards profits began to decline, and in 1998 the firm experienced its first ever losses, recorded at USD 38mn. Five years later, that figure had grown to USD 394m, bringing a very real risk of bankrupt- LEGO Number of staff: 12 582 Sales: USD 4.4bn Profits: USD 1.1bn Kladno factory opened: 2000 Number of staff in the Czech Republic: 2000 cy. But in 2004, new CEO Jørgen Vig Knudstorp joined the firm, and decided to return Lego to its roots. Various Legolands were sold off, and actual, hitherto outsourced, Lego manufacturing was brought back into the fold. Specifically, Knudstorp’s reforms saw Lego assuming control of plants in Juárez, Mexico and Nyíregyháza, Hungary from long-term outsourcing partner Flextronics. The new CEO also reduced the types of bricks produced by the firm, and revived the Duplo name for large Lego bricks intended for toddlers (it had been changed to Explore). In 2009, Lego signed a deal with Warner Bros, which ultimately yielded 2014’s hugely successful The Lego Movie. The tonic worked. Last December, Lego overtook Barbie doll-maker Mattel as the world’s largest toymaker. 10/11 profile Ferdinand Piëch (78) » born to Louise Piëch, daughter of Ferdinand Porsche, founder of the eponymous carmaker and developer of the “People’s Car” VW Beetle, unveiled in 1938 » an engineer by education, Piëch studied at the prestigious ETH Zürich technology institute in Switzerland » from 1963-1971 worked at Porsche in Stuttgart; joined Audi in 1972, becoming head of that firm in 1990 » named Chairman and CEO of Volkswagen Group in 1993. Resigned from these posts in 2002, instead becoming Chairman of the Supervisory Board » has fathered 12 children with four women and has had three marriages The Phaeton disappoints But Piëch’s role was not merely centred around management. Two examples are illustrative, both coming about thanks to the boss’s hands-on engineering experience: the ultra-efficient Volkswagen XL1 and the super-fast Bugatti Veyron. It was he who also had final say over the appearance of the “monster” 2005 Veyron sports car, as well as its power and the fact that its maximum speed would be more than 400 km/h. Many commentators at the time considered such specs to be a waste of money. But Piëch stood by his baby. Engineers who opposed the boss’s ideas found themselves the targets of his wrath. And there were other vehicles as well to which Piëch took a fancy. Upon his departure as VW Chairman of the Board of Management, Piëch gave an interview to the BBC series Top Gear apparently in order to help secure his appointment as Chairman of the Supervisory Board. Looking back over his career, he singled out the Porsche 917 and VW Phaeton as among his favourite projects in which he had participated. Piëch remained restless over the fact that rivals were making big profits through luxury car sales. But the Volkswagen Phaeton, unveiled in 2002, was more than a flop, and it actually represented a financial catastrophe for the firm. Yet Piëch calmly weathered the storm. Kov Many associates say that Piëch is obsessed with detail as much as with megalomaniac projects. As a manager, his behaviour was reportedly frequently despotic. He ran the VW behemoth with the aid of a number of lower-level managers. Those unable to quickly and intelligently answer a particular probing question rarely remained in their posts for long. Upon assuming the management reigns at VW in 1993, Piëch oversaw his firm’s overtaking of General Motors in overall size, and even managed to nip at the heels of global number one Toyota. Last year, the firm sold 10 million automobiles and employed 600,000 people. But now, the decidedly oldschool Piëch is out. What that will mean for the future of VW remains unclear. Will the prickly 78-year-old be missed for his competitive, perfectionist, visionary nature and engineering talents? One change was immediately evident at Berlin’s recent Volkswagen Group Forum DRIVE. The previously starchy, aloof Martin Winterkorn was seen in a thoroughly joyous mood, cracking jokes and glad-handing all comers. It was as if a completely different person had emerged. ařík End of the old school islav Piëch’s departure caused shockwaves across the globe. Reports spoke of a “titan” of the German automobile industry; the man who in 1997 had a hand in reviving the iconic VW Beetle, originally created by his grandfather Ferdinand and uncle Ferry in 1938. Why all the commotion? Simply put, very few would have predicted that Piëch’s downfall would have come about via an ill-considered, obviously futile, attempt to oust a CEO, who by all measures was proving highly successful at his job. Union leader Bernd Osterloh, a man who had hitherto served as a reliable pillar of support for Piëch, was among those suddenly jumping ship. Cousin Wolfgang Porsche also declined to support the chairman’s ouster attempts. Stephan Weil, Social Democrat Prime Minister of Lower Saxony, which holds a blocking minority (mandated via the Volkswagen Law of 1960), also threw his support behind Winterkorn. Shortly after the Salzburg talks, several key shareholders told Piëch that he had lost their support. At which point, the patriarch immediately resigned, severing all his management ties in the group. Wife Ursula, 20 years his junior, also resigned her seat on the supervisory board. quickly and decisively. Drawing upon his vast experience in the automotive industry, he implemented a platform strategy, which increased efficiency by sharing components and technologies across the entire company’s range of cars. The result was an immediate turnaround, yielding lower costs and better quality cars. The same strategy was used during the development of the Volkswagen Golf and its related models, from the first Audi TT, through to the new Beetle. The plan was also used for the assembly of the group subsidiary Seat (acquired 1986) and Škoda (acquired in 1994) models. The money saved by this process was directed towards improved interiors, and a wider range of models. Occasionally valid criticism could be heard that VW’s vehicles were becoming a little similar to each other, but Piëch shrugged off such complaints. His very personality increased the blood pressure of his colleagues. Competitive by nature, the CEO did battle not just with other global car-making rivals, but also within VW Group itself. Piëch appeared to relish placing engineers, construction workers, and designers from various divisions in direct competition with each other. And he made a point of identifying and rewarding the most talented – and also dismissing those who failed to measure up. During his tenure, Piëch gradually transformed VW into a healthy, thriving carmaker. But that wasn’t enough for him. And so began an acquisition shopping spree: Bentley, Bugatti, Lamborghini, Scania... But he wanted more still. Upon him becoming Chairman of the Supervisory Board in 2002, VW also added Ducati, MAN, and ItalDesign. He also wanted Alfa Romeo (owned by Fiat). While ostensibly no longer in command, Piëch continued to pull the strings from the shadows thereafter. This ensured that VW Group came out on top during a 2008 “battle of the giants” in which Porsche sought to assume control of Volkswagen. In 2012, VW’s EUR 4.46bn takeover of Porsche represented the closing chapter of this feud. Břet He sowed the winds and reaped a storm. Such a characterisation seems apt for Ferdinand Piëch’s final days as Chairman of the Supervisory Board at Volkswagen Group. According to the Financial Times, the 78-year-old unsuccessfully manoeuvred to stab in the back VW’s number two, CEO Martin Winterkorn. The move backfired, and ultimately it was Piëch who ended up having to resign on 25 April, likely never to return. It was a stunning change of form for a man known for his fox-like cunning, terse stare, and ability to move the chess pieces in such a way as to always get his own way. Piëch ended his long reign as supervisory board chairman following a stormy, several-hour-long management meeting in Salzburg, Austria at the end of April. In the past, Piëch had reacted to pressure by forming an impenetrable alliance of VW’s leading voices spanning his family (which has historic ties to both VW and Porsche going back to the 1930s), unions, politicians and other insiders. For years, Piëch dominated the automobile giant founded by his grandfather, Ferdinand Porsche. Even the master carpenter sometimes meets his match Photo: Reuters Igor Záruba Piëch had once thrown his full weight behind his number-two and evident protégé Winterkorn. In 2002, he was personally selected by Piëch to replace him as Chairman of the Board of Management, following Piëch’s retirement from that post. But in recent months, the pair’s relationship evidently soured following a series of escalating headaches for the carmaker. The list includes: a lack of success for Volkswagen in the US market, a fall in sales in Russia, growing dependence of the brand on sales to the Chinese market, and an inability to offer up new, enticing models. But what evidently irritated Piëch most was Volkswagen’s inability to turn a decent profit. According to Center Automotive Research (CAR) at Germany’s University of Duisburg-Essen, Volkswagen’s profit margin is presently almost laughable in comparison with the current world number one Toyota. Indeed, it is actu- Ferdinand Piëch became involved in auto production as a small boy in the workshops of his grandfather Ferdinand Porsche, founder of the eponymous car company. In 1968, Ferdinand built the Porsche 917 model, which ultimately became one of the most successful and celebrated sports vehicles of its day. Four years later, the engineer was forced to leave the firm following an agreement signed by the Piëch and Porsche families to play no role in the management of Porsche. And so Piëch set about founding his own engineering company, which soon yielded the OM617 five-cylinder diesel engine for automaker Mercedes. Shortly thereafter, he became chief engineer at Audi, and later ended up heading this company (a subsidiary of Volkswagen Group since 1966). During his 12 years in charge, Piëch managed to transform a relatively indistinct car company into a thriving, modern juggernaut. It was under his reign, for example, that the legendary Audi Quattro came into being. In 1993, Piëch became Chairman and CEO of the entire VW Group. At that time, Volkswagen was facing possible bankruptcy. But the new boss acted ing: L ast Tuesday saw the opening of the Volkswagen Group Forum DRIVE in the heart of Berlin. But someone was notably absent from the unveiling of Volkswagen’s newly restored, grandiose communications platform. Ferdinand Piëch, the man who once saved Volkswagen from bankruptcy; the man who had served on the company’s board for more than 20 years, but was unceremoniously ousted at the end of April. The dramatic departure carries echoes of Steve Jobs’ sudden departure from Apple in August 2011 From grandpa’s famous workshop Draw Ferdinand Piëch: A Fallen Idol Piëch remained in the shadows pulling the strings. This meant that when Porsche sought a takeover of VW, it was the latter carmaker which actually came out on top ally three times smaller: Toyota’s profit margin is USD 1,783 (8.6 percent) per average car sold; while for Volkswagen the figure is USD 585 (2.5 percent). The profit margin for the entire Volkswagen group, incorporating VW, is just under 6.5 percent. 12/13 feature ‘Palace’ advocated for crammed judges T Václav Drchal It is some 723 years since King Wenceslaus II of Bohemia founded the Cistercian Abbey at Zbraslav, near the confluence of the rivers Berounka and Vltava. If the efforts of current Justice Minister Robert Pelikán come to fruition, the ancient settlement of Zbraslav could soon become home to another notable landmark: a palace of justice. Prague already boasts one modernday palace of justice, which stands on Na Míčánkách street in the Vršovice quarter of Prague 2. However, judges of the Court of Central Bohemia and Prague, as well as state prosecutors, could still use more space. The contemplated construction of a palace of justice near Na Baních street in Zbraslav is a brand new proposal drawn up by the latest head of the justice ministry. The new premises would provide a home for the Regional Court of Prague, the District Court of Prague 5, the District Court of Prague-West, and most likely the associated state prosecutors as well. That would make for almost 160 judges, 50 prosecutors and a veritable small army of clerks. Bold estimates see the justice complex ready to go into service a mere three years from now. If the “Palace of Zbraslav” actually does materialise it would be one of the biggest post-November 1989 buildings dedicated to justice in the country. For the sake of comparison: the Na Míčánkách complex has the capacity for approximately 175 judges and 50 state prosecutors, while the overpriced palace of justice in Brno has space for about 100 judges and 50 prosecutors. The commissioning of the new compound would most likely be coupled with the vacating or selling of some buildings currently used by the judiciary around Prague. Although the justice ministry has already presented its plans to the heads of the relevant courts, the project could still go awry: the prospective land is owned by the City, while the national government, being the decisive body, has not yet even discussed the project. “The Zbraslav location is one of the possible locations but it would still be way too early to go into any detail at this time,” said Kateřina Hrochová, a spokesperson for the justice ministry, confirming the existence of plans for the building of a new Prague justice palace to Euro weekly. The Chair of the Regional Court of Prague Ivana Švehlová also discussed the ministry’s plans with some restraint. “There are several possible 5 in their current building on Kinských Square in Smíchov. The judiciary has been in occupancy there since the mid1990s and the judges have persistently complained about a lack of space almost from day one. Successive justice ministers together with the judges have struggled to devise a solution but none of the plans previously put on the table ever progressed. The ideas pondered included for example a loft extension or the construction of another building in the courtyard of the existing one, but it was all to no avail. The Regional Court (as the official administrator of the building, while the District Court is a mere tenant) subsequently decided to act of its own accord and secured permission from the then Justice Minister Marie Benešová to evict the District Court from the building. That prompted the ministry and the District Court to start looking feverishly for a building that would be both suitable and, above all, big enough. However, the search came to nought. The ministry eventually decided that the District Court of Prague 5 needed to be split in two, and recently it even The latest plans propose the following: the District Court will split in three in the summer and merge again in three years’ time and move to Zbraslav together with the Regional Court solutions. The aforementioned project is just one of them and it has not progressed beyond the contemplative stage. As such it hardly merits an evaluation,” Švehlová told Euro via her spokesperson Zuzana Steinerová. Judges miffed by the squeeze The latest plans for the construction of a new palace of justice are the consequence of some 20 years of less than idyllic coexistence of the Regional Court of Prague and the District Court of Prague recommended a division into three parts. Judges dealing with civil law will stay in Smíchov for the time being while judges attending to criminal matters will move to a vacant building in Legerova street (formerly used by the District Court of Prague 2) with the foreclosures section to drop anchor at V. P. Čkalova street. Even though the big move is planned for this summer, the judiciary council of the District Court of Prague 5 expressed its disapproval three weeks ago, Selected venues that the Zbraslav project could affect pointing out that the split could result in a diminished performance of the court (as in the case of the District Court of Prague 6 some time ago). Moreover, the council described the building on Legerova street as “exceptionally unsuitable for a court of law”. A billion in investment The Regional Court of Prague could have considered itself the victor at this stage but then the justice ministry arrived with its bright idea of building a new justice complex in Zbraslav, turning all previous plans upside down. The intended splitting up of the District Court of Prague 5 would probably still go ahead but as a temporary measure only. In other words, the latest plans paint the following picture: the District Court is to be split into three in the summer and it is to be merged again in three years’ time when it will hold hands once more with the Regional Court and march off to Zbraslav. What still hangs in the balance is the future of the Kinských Square building, reportedly crying out for refurbishment at an estimated cost of CZK 891m. One possible route to take is to sell off this particular property. The key question regarding the Zbraslav complex is the cost. Since the ministry has not divulged any numbers yet, estimates must be resorted to. The slightly bigger justice palace at Na Míčánkách street came with a CZK 2.5bn price tag while the smaller (and overpriced) Brno palace cost just shy of CZK 2bn. It is no small change but the construction of a new palace of justice could still make sense financially. Under certain conditions, that is. Firstly, there would have to be no new minister with a further grand plan, secondly, the justice palace would have to be built quickly and at a reasonable cost, and thirdly, the justice ministry would have to be able to sell the building at Kinských Square, plus a few other buildings, for a good price instead of embarking on costly refurbishments. Umm, when was the last time the state succeeded in securing a good sale price or in building something quickly and at a reasonable cost? 7 Legerova street Justice palace at Kinských Square The 19th century building is currently home to the Regional Court of Prague and the District Court of Prague 5. However, relations between the two bodies are strained to say the least. For example the district judges are banned from the Regional Court’s cafeteria. Prague’s Lesser Town The District Court for Prague-West sits at 19 Karmelitská street. The court would also move to Zbraslav if the new complex was built there. 3 Edvarda Beneše street This is the address of the State Prosecution Offices of Prague 1 and Prague 7. The building’s structural integrity has been severely compromised. Although The building at the address is rented by the justice it will not be directly affected by the proposed ministry. It was previously used for the District exodus to Zbraslav, it is excellently located just Court of Prague 6 while it is now earmarked as a prospective temporary base for a part of the District opposite the Cabinet Office building should a sale be on the cards. Court of Prague 5. 18 V. P. Čkalova street The building, now vacant, had previously been used by the District Court of Prague 2. It is now intended to make it a temporary abode for a part of the District Court of Prague 5. The building is in a state of disrepair and in dire need of refurbishment. 21 Washingtonova street The building, in a state of considerable disrepair, is owned by the justice ministry. The ministry initially planned to hand it over to the culture ministry but no agreement was struck. The property was briefly occupied by squatters who broke in during October 2013. Photos: Martin Pinkas he justice ministry has stepped forward with the idea of building a second modern precinct for the judiciary in Prague. Zbraslav, located on the southernmost edge of the capital, seems a likely setting for it If the “Palace of Zbraslav” actually does materialise it would be one of the biggest post-November 1989 buildings dedicated to justice in the country 14/15 wine & dine society society La Bottega olda and olda Director of the Velké Popovice brewery Petr Kofroň christened two freshly born kid goats with the name Olda. For more than 40 years this name – the name of the person who took care of the beer maker’s first few generations of live mascots – has been passed down from goat to goat by the brewery, located southeast of Prague. Kozel, which means “male goat” in Czech, is part of the name of its award-winning Velkopopovický Kozel range of lagers Six variations on bistro Photo: ČEZ Holešovice recently saw the opening of a new La Bottega bistro created by Riccardo Lucque. Local residents and office workers have already been showing their appreciation access-friendly contraption tried out at school weekend Photo: Plzeňský Prazdroj Prague’s Hanspaulka primary school arranged a fun weekend for its youngest pupils along with the HanspaulCUP football tournament for their parents. During the occasion, visitors were invited to try out a new angled staircase platform introduced in the rear wing of the school. It makes it possible for the Kryštof pre-schoolers and anybody else who uses a wheelchair to independently access all the key parts of the school buildings. The foundation of energy company ČEZ contributed CZK 100,000 to buying the platform on the recommendation of six-time Paralympic winner and world champion in road and track cycling Jiří Ježek Klára Donathová a dv e r t i s i n g Photos: archive A151002208 Get your subscription! The Verdict You can subscribe securely via e-mail La Bottega Tusarova 39, Praha 7 Monday, 11 May 2015 CZK 24/¤ 1 l www.e15.cz Issue 70 l newsstand price The unmaking of Ferdinand Piëch How the VW legend came to be unceremoniously ousted profile pages 10–11 No room at the courthouse Somewhat higher prices than usual Stock items/dishes not always available ed right next to the desserts. Last time I enjoyed marinated grilled courgettes with basil, hazel nuts and balsamic vinegar. La Bottega is not only a bistro, it is also a store where you can buy everything you need to prepare authentic Italian dishes at home: From highquality olive oil and tomatoes of different varieties to wines, vinegars, fresh pasta made from semolina flour and freshly prepared sauces. Use the e-mail address [email protected], State your name and delivery address. Use the code WEEK 0515B as the message subject 70 Simple fresh food Includes a store selling Italian delicacies and highquality ingredients 9 771803 454314 version was enlivened by the addition of mouth meltingly delicious bone marrow. With its well cooked rice, creamy consistency and beautiful yellow colour, it was close to perfect. From among the lighter dishes we also tried the grilled fish on toasted bruschetta with feta cheese. On the main menu the fish is presented as grilled mackerel, but as this wasn’t available on the day, I was offered a tasty fillet of sea bream instead. Who could complain? La Bottega Tusarova employs its own professioBurger. nal confectioner and during the day you can watch Italian With confectioner Daniele Comporchetta, bi at work through the glass salsa verde and coleslaw partition. Choosing only one of his delicious creations may prove difficult but you certainly won’t be disappointed by the rich chocolate effusion of the Foresta Nera, a domeshaped dessert of chocolate mousse, a cocoa glaze and forest fruits. Some unconventional and colourful salads are display- Full-year subscription: Ministry of justice has proposed to build a new home CZK 650 and as a gift feature pages 12–13 Bali padda: We rebuilt lego, brick by brick vouchers with a value of CZK 1,500 out into the Though Lego is branching s will virtual world, its core busines says Lego’s remain classic brick-building, Padda Executive Vice President Bali firm figures are used at this instead of business cards ali Padda is a small, Do you know what Kladno inconspicuous, greywas famous for producing haired Indian man. manua up set Lego before He speaks in a slight, here? ac- facturing facility but deep voice; the British No, I don’t. But each time he cent clearly betraying that airport, to the we travel from the truly left his place of birth for of our right we see a huge, factory. southern English county ago. monstrous-looking Kent a good many years what they to be- I often wondered been told Outwardly, there is little I’ve But there. make tray that Padda is number-two the factory is closed. Perhaps maat Lego, the largest toy His you can tell me more... nufacturer in the world. manner y demure, gentlemanl bankrupt. the That factory went a steel is in strong contrast with of But it used to be extrovert, jocular manner plant, and was the biggest Lego’s Danish CEO Jørgen employer in the town. They Vig Knudstorp. Our interview used to make steel ingots in begins with Padda handing Kladno. Now Lego has been me a plastic figure bearing here for 15 years, employing hair, grey has it – Czech his likeness 2,000 people in the green trousers, is emblazoned Republic. and with the name Bali Padda, even features his telephone Continues on page 8 such number. It turns out that Petr Horký B can be used for e-shop www.luxuryoffice.cz Photo: Hynek Glos I f you want to enjoy good Italian food at reasonable prices, an available seat is surely waiting for you in one of the six varied La Bottega bistros that now operate in Prague. The recently opened branch on Tusarova street in Holešovice is open from 9am and serves up a good selection of traditional breakfasts. Try a classic fresh croissant with a Gianni Frasi cappuccino, or eggs Benedict with cooked ham and Hollandaise sauce on a sesame bagel (195 crowns), or for the same price there are well prepared scrambled eggs with smoked salmon and mascarpone. Lunch is a more streamlined affair. Every week La Spaghetti Carbonara. Bottega offers a different With poached egg, pecorino and crispy quanciale lunch menu priced at 195 crowns for two courses. The menu always includes a soup, a meat or fish dish and a pasta dish or risotto. Soup of the day on our visit was a flavoursome cream of white asparagus and green asparagus with poached egg, topped with a hollandaise sauce and accompanied by two slices of crispy pancetta. Next up was the Milanese saffron risotto. This is one of the more familiar rice dishes from Italy but this until 29 September 2015 You can also subscribe online at our website http://www.mf.cz/produkty/ To subscribe on a toll-free number, call 800 248 248 Simply call to provide your personal details and cite the code WEEK 0515B This subscription offer is valid until 7 June 2015 7.5.2015 14:14:11 01-08-09 E15W 70.indd 1 This offer is valid for new subscribers only and will remain in place while stocks last. 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For more information and to read the general delivery conditions visit www.mf.cz 16 Photo: Reuters diversions picture of the week Close, but no e-cigar The aim for competitors battling it out at Vape Summit 3 in Las Vegas was nothing more than exhaling the biggest vape cloud from an electronic cigarette. But some contestants just had to take things a bit further than simply ‘cloud-chasing’; they were variously seen blowing vapour into a bubble, stepping forward with way-out flavoured vape juices such as thick and milky custard and pineapple cheesecake and using a trash can to create vapour rings, among other valuable pursuits. Research shows that performing tricks is one of the top two reasons why youngsters begin using e-cigs invitations photography ClassiCal musiC Folklore gastronomy The masterful work of Vlastimil Košvanec Jiří Wackermann’s Returns of the Seen Mahler’s music and young life in sync Prague set for Navalis baroque festival 50+ stalls at Fishkus festival Sorrow and tenderness is inimitably characterised by the work of painter and satirical illustrator Vlastimil Košvanec (1887-1961). He died isolated and forgotten after a nervous breakdown in a mental hospital. A three-sided Košvanec exhibition is taking place until 6 June at Prague’s Czech Centre, Italian Cultural Institute and Museum of Bedřich Smetana. Jiří Wackermann’s work moves between images of fantasy and simple optical lyricism. An exhibition of a range of his photography will commence on 12 May at the Café Kampus coffeehouse and gallery which is situated at 10 Náprstkova, Prague 1. It will remain open until 30 June. Jihlava will resound with the sound of the great Bohemia-born composer Gustav Mahler. The Mahler-Jihlava 2015 international festival will link works of Mahler to places he experienced during his childhood and youth. Many of the concerts, starting 14 May, will take place at the Elevation of the Cross church and the Jihlava House of Culture. The Navalis midsummer baroque festival takes place on 15 May in the vicinity of Charles Bridge. Folklore associations will offer various attractions on Křižovnické náměstí and the day will culminate with floating baroque concert performances on the river Vltava and a light show. Look out also for parachutists and a regatta of dragon boats. Fish and seafood festival Fishkus will be held on 16 May on Smíchovská náplavka by the river Vltava in Prague 5. Visitors can look forward to more than 50 stalls offering grilled, smoked, baked and pickled fish treats, along with oysters, mussels, shrimps, seafood and many other mouthwatering temptations. Photos: archive visual arts
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