Parliament to reconsider controversial budget rules amendment

MPs are due to reconsider a controversial government amendment to budget laws on Tuesday. President Petr Pavel vetoed the bill, saying it threatens the long-term sustainability of public finances. Opposition MPs fear the legislation would allow the government to spend more and increase the state debt by loosening fiscal responsibility rules. The government is determined to override the president’s veto with its majority in the lower house.

In his veto statement, Pavel said the law would significantly change the way the state manages public money. He also warned that it would weaken parliamentary oversight of public finances in favour of the government. Prime Minister Andrej Babiš (ANO) called the president’s decision irresponsible and activist.