A nation-wide civil servants' strike - including tax-revenue officers and other state employees - especially teachers - has become an almost one-hundred percent certainty for September 1st. The reason for the strike: to send a message to the government, currently hammering out complex public finance reforms, that more money is needed for end-of-the-year bonuses for state employees. They expect an additional six billion crowns to somehow be found in an already tight state budget.
Czech government approves the framework of its fiscal reform package. Central bank cuts key two-week repo rate to an all-time low of 2.25 percent. The Czech trade deficit for May narrowed well beyond expectations to its lowest level since January. Czech farmers will receive compensations for damage caused by sweeping floods last summer. Government is considering further privatisation of lucrative companies, including famous Budvar brewery. Telecommunications giant Czech Telecom hopes to reduce operating cost after taking over mobile operator
The reform of public finance approved yesterday by the government and the following protest rally of trade unionists in Prague seize the headlines in all major dailies on Tuesday. The front pages of PRAVO and MLADA FRONTA DNES show photos of the same female demonstrator wolf-whistling. HOSPODARSKE NOVINY has a picture of another protesting woman, hooting a horn, while LIDOVE NOVINY shows Prime Minister Vladimir Spidla waving his fist while addressing the crowd.
The leaders of the three ruling coalition parties on Sunday approved further details of the planned budget reform aimed at reducing the growing deficit in public finances. The proposed reform will include sweeping changes in the pension and social systems, tax adjustments as well as changes in state administration.
Representatives of the three Czech ruling coalition parties have agreed to measures aimed at reducing the country's growing deficit of public finances. Cabinet experts agreed to reduce the number of state bureaucrats and to slow down wage growth in the public sector. The ministers also approved a radical reform of the pension scheme from a continuously financed system to a savings-based one. The retirement age will be increased to 63 from the current 61 for men and 60 for women. Czech economic experts and foreign institutions have repeatedly warned that the growing public finance gap is unsustainable and besides causing other problems, it could pose a threat to the country's adoption of the single European currency.