ČSSD to scrap compulsory pension schemes if it won polls

Prague, Feb 12 (CTK) - The Czech Social Democratic Party (CSSD) would scrap people's compulsory saving in pension funds as well as the changes in VAT as planned by the present centre-right cabinet, if it won the elections, CSSD acting chairman Bohuslav Sobotka said Saturday, server iDnes.cz reported.

It is mainly the junior government TOP 09 that promotes people's compulsory participation in private pension schemes through pension funds, and the introduction of a single VAT rate of 19 percent, compared to the present 10 and 20 percent rates.

"If the coalition pushes through the compulsory saving in funds as from 2013, only one year will be left before the elections. We should tell people that after the elections we would abolish the compulsory participation in pension schemes," Sobotka said at a meeting of the CSSD central executive committee Saturday.

He said it is necessary to let people know what would change in society if the CSSD won the polls.

The next regular general election is due in 2014.

Sobotka said the CSSD, if it succeeded in the polls, would also scrap the increase in the lower VAT rate, if the government coalition pushed it through parliament now.

The above mentioned steps have mainly been promoted by TOP 09. Prime Minister Petr Necas's senior ruling Civic Democrats (ODS) prefer voluntary private schemes, but are ready to nod to the system being compulsory.

The other junior ruling partner, centrist Public Affairs (VV), says compulsory private saving for pension should be only a supplementary measure applied to high income people.

The VV has rejected the planned increase in the lower VAT that is mainly applied to foods.