PM says proposed reforms are emergency brake for fiscal deficits

Czech Prime Minister Mirek Topolanek told the Chamber of Deputies on Wednesday that his government's proposed finance reforms will act as an emergency brake for public spending. Mr Topolanek said that the draft reforms were needed to curb rising budget deficits, which are threatening public finances. The reforms, which include a flat tax, fees for healthcare services and changes to the social welfare system, are expected to pass their first reading in the lower house on Wednesday. Two opposition MPs supporting the government, which has no guaranteed majority in parliament, have said they will vote for it but haven't ruled out pushing for changes in the next stage of the approval process. The final vote on the reforms is to be taken later this summer.