President Václav Klaus, Prime Minister Jan Fischer and the heads of parliamentary parties agreed on Wednesday to form a working group to prepare options to change the constitution so as to secure a quick election after a Constitutional Court decision threw into doubt polls planned for 9-10 October. “We will all try to find a way for the election to happen either on the originally proposed date or as close to this date as possible,” Klaus told reporters.Continue Reading

The cabinet proposed tax hikes and spending cuts on Monday aimed at slashing the budget deficit and setting up a showdown with political parties, and it warned it may quit if the plan fails in parliament. The measures would cut the central state budget gap to CZK 155.3 billion. Finance Minister Eduard Janota said the package would have a negative impact on GDP of around 0.6%, bringing growth next year to about -0.3%.Continue Reading

The Czech central state budget is likely to be proposed with a deficit of CZK 230 billion (USD 12.76 billion) for next year if legislation does not change, which would mean a public finance gap of 7% of gross domestic product, Finance Minister Eduard Janota said on Sunday. He said the state budget deficit, which is a key part of public finances, could be slashed to roughly CZK 160 billion next year, or 5% of GDP, if taxes are raised and mandatory spending trimmed.Continue Reading