Fiscal reforms find smooth passage through parliament
The Lower House of Czech Parliament has approved in the second reading eleven bills that constitute a major public finance reform proposed by the government. Although some coalition MPs had previously voiced their dissatisfaction with certain reform measures, the cabinet had few problems pushing the package through.
The only rebel in the otherwise united governing coalition is the chairman of the economic committee of the Lower House, Josef Hojdar, who has resorted to abstaining from certain votes. This seems a rather symbolic gesture, because it does not help the opposition in any way to block the bills. Nevertheless, he has threatened to vote against up to three reform steps in the third, final vote.
There were surprisingly few amendments but it is likely that the MPs will eventually make some minor changes to the reform laws. The government itself had yielded to pressure from the Trade Unions just before the parliament started debating the proposals and softened the planned pension reform.
The government has staked its future on the success of the public finance reforms. The state budget for next year is directly linked with the reforms and as Finance Minister Bohumil Sobotka recently said, the government has no "plan B".
Prime Minister Vladimir Spidla, who has promised to resign if the reforms fail, says that he would tolerate minor amendments and partial defeats. Given the smooth passage of the laws through parliament, pundits agree a collapse of government is highly unlikely, even though the opposition has arranged a cosmetic vote of no confidence in the government for this Friday.
