Top court rules last year’s budget cuts unconstitutional

The Czech Constitutional Court ruled on Monday that the government’s austerity package, adopted in late 2010, was approved in breach of the constitution. The package, which slashed social and other benefits to lower the deficit in public finances, was pushed through Parliament after having called a “legislative emergency”. The court said this was unacceptable, and gave the government until the end of the year to have the laws re-approved.

The Czech Constitutional Court, photo: CTK

The Czech right-of-centre government will have to send their cost-cutting package to Parliament once again. The measures, adopted in November 2010, lowered this year’s state budget deficit by some 23.5 billion crowns. But the country’s Constitutional Court upheld on Monday a complaint by the opposition Social Democrats who objected to the way these measures were adopted.

In the Czech lawmaking system, “legislative emergency” is a process in which Parliament adopts bills in a shortened procedure, with limited or no debate on the floor. This tool is expected to be used at times of crisis, such as natural disasters and the like. But in November, the coalition used the instrument to save up on social, sickness and maternity benefits, and state incentives for private savings accounts.

Petr Nečas

The coalition parties have 118 MPs in the 200-seat lower house. That alone would guarantee the smooth approval of the austerity package. But the government did not want to bring up the sensitive issues of budget cuts ahead of October’s local and Senate elections – which saw the opposition gain a majority in the Senate. That would mean further delays in adopting the package. The Constitutional Court, however, showed little understanding for this strategy. Judge Eliška Wágnerová explains when a legislative emergency can be declared.

“There have to be circumstances that escape the regular course of events. The state budget, however, is approved every year. So the state of legislative emergency cannot be something that already envisioned in the system of law.”

The court was divided overt the issue, and ruled against the austerity package with the slightest majority. The judges also kept the laws in effect, giving the government until the end of the year to have the laws re- approved by standard procedure. This prompted one dissenting judge to scoff at the ruling saying the court managed to revoke and uphold the package at the same time.

The opposition Social Democrats naturally welcomed the verdict. Party leader Bohuslav Sobotka said he expected Prime Minister Nečas to apologize.

Bohuslav Sobotka, photo: CTK

“The Constitutional Court moved to protect the legislation process. Its decision is also important for the protection of the rights of the opposition in Parliament. We can now also say that the coalition government abused the instrument of legislative emergency, and I believe Prime Minister Nečas should apologize to the opposition.”

But Mr Nečas has no intention of doing so. His government has enough time to re-introduce the exact same bills to the Czech Parliament, and enough MPs in the lower house to overturn any veto that might come from the opposition-dominated Senate.