Právo: Finance Ministry may strip state employees of benefits next year

Meanwhile, the daily Právo reports that the Minister of Finance, Miroslav Kalousek, has prepared a change in funding regulations that may lead to state employees losing benefits next year. The fifty percent cut to the cultural and social needs fund could entail the loss of state employees’ allowances for holidays, pension insurance, emergency assistance payments or meal allowances. According to the finance minister’s report on the change, the additional 1.2 billion crowns saved would help decrease the budget deficit and meet the government’s goal of reforming public finances for the sake of a balanced budget by 2016. The state employees’ union has said the proposal is devastating. Last week a demonstration of some 40,000 people protested 10% cuts to state employees’ salaries that have already been proposed for 2011. Trade Unions are considering strike action in October.