President Pavel gives backing to bill cutting index-linking of pensions

President Petr Pavel says he will sign into law a government bill under which the indexation of state old-age pensions will be reduced in June. Speaking to journalists on Wednesday afternoon, Mr. Pavel said supporting the bill had not been an easy decision, adding that in the current circumstances there was no good solution that would work for everybody.

The head of state said he understood opposition assertions that the legislation was unconstitutional, because it is retroactive and it has been pushed through in a fast-track procedure.

Mr. Pavel said, however, that he agreed with the government when it said it was important at the present time to slow pension growth.