Non-EU foreign nationals seeking to reside in the Czech Republic are expected to meet a number of obstacles following the news that the government is seeking to tighten its laws regarding residency permits.

In a move which may affect the country's property market, the government has announced that it may seek an amendment to the laws governing permits in order to crack down on those people trying to gain entry to the country illegally, Radio Praha reports.

Jana Malikova, interior ministry spokesperson, said that there was "now such abuse of the system" that the government "had to take action".

This may mean that people looking to live permanently in the country will have to complete additional paperwork and wait five years before they are issued with a permit.

Meanwhile, Germany's government is expected to extend a block on migrants from a number of recent EU entrants, including the Czech Republic, from working freely in the country, the DPA reports.

The ban was originally intended to last seven years, but the coalition government is likely to attempt to extend it by a further two years to 2011.

In related news, the Czech Republic's prime minister Mirek Topolanek recently stated that in order to join the European single currency the country would need to see a number of tax reforms, EUbusiness reports.

Mr Topolanek said that all discussions about when the country would introduce the euro would be "useless" if the reforms were not put in place.