Lower house approves controversial pensions bill

The Czech lower house has approved a government proposal to lower the pension increase during June indexation. The vote took place at an extraordinary Saturday session of the lower house following four days of opposition filibustering.

Under the government-proposed amendment, the average monthly pension will rise by CZK 760 instead of the expected CZK 1,770. The government says limiting pension increase during June indexation is necessary to stabilise public finances and will save CZK 19.4 billion this year alone.

The draft will now head to the Senate, where the ruling parties have a majority. In order to take effect this year, it needs to be signed into law by the president by March 22. Incoming President Petr Pavel is expected to announce his position on Friday.