Trade unions reject next year's budget at tripartite talks

Prague, Sept 24 (CTK) - The Czech tripartite negotiations Monday did not produce agreement on the 2013 state budget bill, Finance Minister Miroslav Kalousek (TOP 09) said after the meeting, adding that the trade unions rejected it and employers had reservations about the government-proposed version.

The government is to submit the draft budget to the Chamber of Deputies by the end of September.

Kalousek said the budget would be submitted together with the positions of the unions and employers.

Representatives of the government, unions and employers met at the negotiating table after half a year.

The unions left a tripartite meeting in the spring saying the government talked to them only after it had made a decision. It was not for the first time that the unions walked out from a meeting.

However, even Monday's meeting was jeopardised still at the weekend due to the statement of Jaroslav Zavadil, chairman of the CMKOS umbrella union organisation, on Friday that the government of Prime Minister Petr Necas (Civic Democrats, ODS) has been the worst since 1950.

Then Czechoslovakia was ruled by communists from 1948 until end-1989.

Necas reacted saying he will not meet Zavadil until he withdraws his statement.

Necas eventually arrived at the tripartite meeting Monday later because of other duties.

Zavadil told journalists that Necas returned to his statement. He did not want an apology from him, but wanted him to withdraw the statement, which Zavadil did.

"It is over," Zavadil said, adding, however, that he insists on that Necas's government has been the worst post-communist one.

Zavadil said the unions cannot support the budget in its current version.

They do not like that the government based the draft budget on legislation that has not yet been passed.

They disagree with the basic parameters and warn about the launch of the pension reform and the raising of VAT as from next year.

Zavadil said the envisaged freezing of salaries will restrict consumption.

Pavel Juricek, Conferederation of Industry vice-president, said the budget is insipid and includes risks.

The planned investment in transport, education and research has, however, pleasantly surprised the employers.

On the other hand, they mind the government's inactivity on a reform and slimming of the state administration.

Finance Minister Miroslav Kalousek (TOP 09) said he was not surprised that no agreement was reached on the budget.

He said the debate was matter-of-fact, calm and not ideological.

Kalousek said the government will approve the final resolution on the budget and will hand the bill together with the stands of unions and employers to the Chamber of Deputies.

Kalousek counts with a 100 billion crowns deficit next year, which is below 3 percent of GDP.