Prague - As the Czech Republic takes over at the helm of the European Union on Thursday, the country's diplomats already face a big test - The EU response to Israeli air-strikes on the Gaza Strip.

Prague, a proponent of deeper EU ties with Israel, still hopes to stage the first top-level meeting between the EU and Israel in the final days of its presidency ending on June 30, officials said.

But instead of paving way for an upgrade in EU-Israeli relations, Czech Foreign Minister Karel Schwarzenberg is likely to lead an EU delegation to deal with the latest Middle East conflict as soon as Sunday.

Prague  - Skoda has launched its most expensive and fastest production car, the Superb V6 four-wheel drive, powered by a 3.6-litre FSI with an output of 191 kW/260 hp and prices starting at 34,790 euros (48,521 dollars).

With the cheapest Skoda costing only 8,092 euros in 1997, the latest Superb is the "most expensive Skoda ever built," according to the car maker. The Elegance version including all extras cost 45,229 euros including seven airbags and an array of assistance systems, leather upholstery and sunroof.

Prague  - The Czech parliament's lower house Friday struck down direct fees for medical care, an unpopular public finance reform of Prime Minister Mirek Topolanek's government designed to curb waste in healthcare.

The leftist opposition, helped by several government lawmakers and independents, voted 97-92 to strike down the fees that were introduced in January. Four lawmakers abstained.

Prague  - Czech Prime Minister Mirek Topolanek's big test in 2009 will be juggling the nation's historic trans-Atlantic ties, his reserve toward the European Union and the task of chairing the EU.

Topolanek, whose country was occupied by Soviet troops during the Cold War, made it clear in 2008 that he sees strong US ties as the most reliable guard against Moscow.

In July, his government struck a deal with President George W Bush's administration to host a missile-defence radar base on Czech soil and was rewarded with visa-free US travel for its citizens.

Prague - The Czech Republic's central bank Wednesday cut its benchmark interest rate by 50 basis points in a bid to boost the country's economy which is bracing for a severe slowdown next year.

The Czech National Bank slashed the benchmark two-week repo to 2.25 per cent, the lowest level since October 2005 in a second dramatic cut in a row. The bank already cut the key rate by 75 basis points on November 6.

The cut brought the rate below that in the eurozone. The European Central Bank delivered a 75-basis-point cut on December 4, bringing the key rate in the 15 countries using the euro to 2.5 per cent.

Prague - The Czech Republic wants the European Union to craft a "win-win" climate-package deal that would not detriment the EU's Eastern European members, an official said Wednesday.

"For us phasing-in in the power generation sector is a kind of a red line. It must be part of the solution," said Vice-Premier for European Affairs Alexandr Vondra, referring to an EU proposal to require companies to buy greenhouse gas emissions permits at auctions.