Civic Democrat deputies sticking to their guns in VAT-hike controversy
The six Civic Democrat deputies who are vehemently opposed to the government proposed VAT hike for 2013 say they will torpedo the government’s austerity package for next year if a compromise solution is not found. A series of negotiations with the Civic Democrat leadership has not brought the two sides any closer to agreement. The respective bill is crucial for next year’s state budget and the prime minister has linked it to a vote of confidence in his government. Civic Democrats opposed in principle to tax hikes claim that the money should be found by cost-cutting measures and through privatization, but this solution has been criticized in view of time-pressure.