Let the good times roll

It was one piece of good investment news after another last week. First was the sale of Grisoft anti-virus maker. Then was Sungwoo's announcement of a new Kč 2.5bn car-body plant in Ostrava. Topping it all off was the CR's record 5.1% GDP growth for the second quarter. Will it ever end? Amazingly, the CR has consistently been able to gloss over the bad news - such as the explosion in government spending - ever since the Velvet Revolution, except for 1-2 years in the late 1990s. The trick will be to keep the streak going as labor costs rise and investors look East. Expecting politicians to undertake any real reform is wishful thinking. More likely is that the CR will turn protectionist. The CR has been a staunch supporter of further EU enlargement, but this could change. Why should it let Bulgaria or Romania take away the hens that have been laying its golden eggs?