Parliament passes financial reforms

The Czech lower house has passed an extensive financial reform bill. In a final vote on Tuesday, the centre-right coalition government's draft legislation was supported by 101 of the 200 MPs in the Chamber of Deputies. The votes of two rebel opposition Social Democrat MPs, Milos Melcak and Michal Pohanka, were needed to push the reform through the lower house. One government MP, Christian Democrat Ludvik Hovorka, voted against the bill, which has sparked much controversy with critics saying that it will do nothing to halt the Czech Republic's rising budget deficit whilst leaving many people worse off.

The passing of the bill has staved off a potential political crisis, as Prime Minister Mirek Topolanek had threatened to push for early elections if the vote failed. The bill includes major changes to the Czech Republic's taxation and welfare systems. It will now have to be approved by the Senate and the president before becoming law.