President signs legislation on finance reform

President Vaclav Klaus has signed the country's bill on public finance reform; his spokesman Petr Hajek made the information public on Friday. The legislation, bringing changes to taxation, social security, and health care, is aimed at cutting the country's debt. The opposition is opposed to the bill, with the largest opposition party saying it will lodge a complaint at the Constitutional Court. The Czech president has reportedly admitted the legislation was not without flaws, although he did not think they contradicted the Constitution, Mr Hajek said. Under the new bill, which takes effect on January 1st, Czechs will, for example, pay cash for visits to doctors' surgeries as well as to hospitals. Also, those on sick leave will not receive payment for their first three days off. Among other changes, the legislation also introduces a flat income tax rate, and raises VAT on foodstuffs and medicines.