Prime Minister Petr Fiala's government has come under fire from low-income voters over record inflation
Issued on: 11/05/2023
Prague (AFP) – The Czech government presented an extensive tax and pension reform on Thursday designed to curb soaring public debt due to the Covid pandemic and the war in Ukraine.
Presenting the "Czechia in Shape" programme, Prime Minister Petr Fiala said its goal was "to fundamentally reverse the trend of growing debt" and make the pension system sustainable.
"The pace of the debt growth in our country is horrific," Fiala told reporters.
The EU member of 10.5 million people was hit hard by the Covid-19 pandemic and topped the global statistics for per capita deaths for several months.
In 2019, before the pandemic hit Europe, the Czech government's debt reached 28.3 percent of gross domestic product (GDP).
Last year, it stood at 42.6 percent.
The government will cut spending in the government sector, curb subsidies, and raise the real estate tax and corporate income taxes from 2024.
It will also introduce changes to extend the pension age.
Labour and Social Affairs Minister Marian Jurecka said the retirement age would be set on the basis of life expectancy from 2025, against the current 64 years.
The average Czech should receive a pension for 21.5 years, Jurecka told reporters.
"Around 2050, we will have one working person per one pensioner, this is why the change is crucial," Jurecka said.
He added the state would also tighten the rules for early retirement.
Fiala's government will also replace the current three value added tax (VAT) rates of 10, 15 and 21 percent with two set at 12 and 21 percent, said Finance Minister Zbynek Stanjura.
Vital goods such as foodstuffs, housing and healthcare will be taxed at 12 percent against the current 15 percent.
The government also expects to raise taxes on alcohol, tobacco and gambling, and has scrapped VAT on books.
Fiala's centre-right government -- in office since late 2021 -- threw its support behind Ukraine after it was invaded by Russia in February 2022.
It has provided Ukraine with substantial military and humanitarian aid and received almost 500,000 war refugees, which also had an effect on its spending.
The economic plan has to be passed by parliament, but is expected to pass easily as the government holds a majority of 108 votes in the 200-member lower house.
Fiala's government has recently come under fire from low-income voters staging several rallies in Prague over record inflation and falling living standards.
© 2023 AFP
Presenting the "Czechia in Shape" programme, Prime Minister Petr Fiala said its goal was "to fundamentally reverse the trend of growing debt" and make the pension system sustainable.
"The pace of the debt growth in our country is horrific," Fiala told reporters.
The EU member of 10.5 million people was hit hard by the Covid-19 pandemic and topped the global statistics for per capita deaths for several months.
In 2019, before the pandemic hit Europe, the Czech government's debt reached 28.3 percent of gross domestic product (GDP).
Last year, it stood at 42.6 percent.
The government will cut spending in the government sector, curb subsidies, and raise the real estate tax and corporate income taxes from 2024.
It will also introduce changes to extend the pension age.
Labour and Social Affairs Minister Marian Jurecka said the retirement age would be set on the basis of life expectancy from 2025, against the current 64 years.
The average Czech should receive a pension for 21.5 years, Jurecka told reporters.
"Around 2050, we will have one working person per one pensioner, this is why the change is crucial," Jurecka said.
He added the state would also tighten the rules for early retirement.
Fiala's government will also replace the current three value added tax (VAT) rates of 10, 15 and 21 percent with two set at 12 and 21 percent, said Finance Minister Zbynek Stanjura.
Vital goods such as foodstuffs, housing and healthcare will be taxed at 12 percent against the current 15 percent.
The government also expects to raise taxes on alcohol, tobacco and gambling, and has scrapped VAT on books.
Fiala's centre-right government -- in office since late 2021 -- threw its support behind Ukraine after it was invaded by Russia in February 2022.
It has provided Ukraine with substantial military and humanitarian aid and received almost 500,000 war refugees, which also had an effect on its spending.
The economic plan has to be passed by parliament, but is expected to pass easily as the government holds a majority of 108 votes in the 200-member lower house.
Fiala's government has recently come under fire from low-income voters staging several rallies in Prague over record inflation and falling living standards.
© 2023 AFP
Fiala’s Government Sees Lowest Popularity Rating Since 2013
Czech News Agency April 19, 2023
Prague, April 19 (CTK) – The government of Czech Prime Minister Petr Fiala (ODS) has the lowest popularity rating since the cabinet of Petr Necas (ODS) in 2013, according to a poll conducted by the Public Opinion Research Center (CVVM) between late January and 20 March.
Czech citizens mostly criticise the cabinet’s program, performance and individual members, as well as the prime minister himself and the way he communicates with the public.
In all of these aspects, Fiala’s cabinet has lower popularity ratings than at any time during the two cabinets of Andrej Babis (ANO; 2017-2021), the cabinet of Bohuslav Sobotka (CSSD; 2014-2017) and the caretaker cabinet of Jiri Rusnok (2013-2014), despite the fact that Babis’s first government and the Rusnok cabinet were ruling without the confidence of the Chamber of Deputies.
The only lower rating than Fiala’s was for Necas’s cabinet in a February 2013 poll. Necas’s government underwent extensive personnel changes during its three years in power and ended by resigning in summer 2013 after a police raid in the government offices.
Negative assessments of Fiala’s government outweigh the positive ones. For example, only 24% of respondents were satisfied with the members of the government, while 71% are dissatisfied overall. The prime minister is rated negatively by 64% of people and positively by 32%. While 69% of Czechs are dissatisfied with the government’s actions, only 27% are satisfied. The cabinet’s communication with the public is assessed negatively by 66% of respondents and positively by 30%. The smallest margin between positive and negative evaluations is for the government’s program, with which 30% of Czechs are satisfied, compared to 59% that are not
Compared to the previous survey in August and September 2021, which evaluated Babis’s government, the share of dissatisfied people in each case has increased by up to 15 percentage points. The evaluation of the prime minister has changed the least; in the previous survey, 62% of people were dissatisfied with Babis as PM, while in the current survey, 64% of respondents evaluate Fiala negatively.
The poll found that older people are less satisfied with Fiala’s cabinet in all aspects, while people from higher-income households and with better living standards are more satisfied. Right-wing voters are generally more satisfied with the current government. Strong dissatisfaction with the cabinet was expressed mainly by supporters of the opposition parties ANO and Freedom and Democracy (SPD), as well as non-voters.
The current cabinet has been facing rising prices and other impacts of the Russian attack on Ukraine, which started last February. Over the past few months, protests against the government have been held repeatedly in the Czech Republic. On Sunday, thousands of people demonstrated at Wenceslas Square in Prague, with speakers calling for strikes and the resignation of the government.
In March, some of the participants in one demonstration tried to enter the National Museum building and tear down a Ukrainian flag.
Last September, around 70,000 people gathered at a protest rally calling for the government’s resignation. The organisers criticised the government over soaring energy prices and the pro-Western stance of the current cabinet.
The survey was conducted by CVVM from 31 January to 20 March on a sample of 861 Czech residents over the age of 15.
Appointed in December 2021, the Fiala cabinet comprises the three-party Spolu alliance of ODS, the Christian Democrats (KDU-CSL) and TOP 09, as well as the Mayors and Independents (STAN) and the Pirate Party.
Czech News Agency April 19, 2023
Prague, April 19 (CTK) – The government of Czech Prime Minister Petr Fiala (ODS) has the lowest popularity rating since the cabinet of Petr Necas (ODS) in 2013, according to a poll conducted by the Public Opinion Research Center (CVVM) between late January and 20 March.
Czech citizens mostly criticise the cabinet’s program, performance and individual members, as well as the prime minister himself and the way he communicates with the public.
In all of these aspects, Fiala’s cabinet has lower popularity ratings than at any time during the two cabinets of Andrej Babis (ANO; 2017-2021), the cabinet of Bohuslav Sobotka (CSSD; 2014-2017) and the caretaker cabinet of Jiri Rusnok (2013-2014), despite the fact that Babis’s first government and the Rusnok cabinet were ruling without the confidence of the Chamber of Deputies.
The only lower rating than Fiala’s was for Necas’s cabinet in a February 2013 poll. Necas’s government underwent extensive personnel changes during its three years in power and ended by resigning in summer 2013 after a police raid in the government offices.
Negative assessments of Fiala’s government outweigh the positive ones. For example, only 24% of respondents were satisfied with the members of the government, while 71% are dissatisfied overall. The prime minister is rated negatively by 64% of people and positively by 32%. While 69% of Czechs are dissatisfied with the government’s actions, only 27% are satisfied. The cabinet’s communication with the public is assessed negatively by 66% of respondents and positively by 30%. The smallest margin between positive and negative evaluations is for the government’s program, with which 30% of Czechs are satisfied, compared to 59% that are not
Compared to the previous survey in August and September 2021, which evaluated Babis’s government, the share of dissatisfied people in each case has increased by up to 15 percentage points. The evaluation of the prime minister has changed the least; in the previous survey, 62% of people were dissatisfied with Babis as PM, while in the current survey, 64% of respondents evaluate Fiala negatively.
The poll found that older people are less satisfied with Fiala’s cabinet in all aspects, while people from higher-income households and with better living standards are more satisfied. Right-wing voters are generally more satisfied with the current government. Strong dissatisfaction with the cabinet was expressed mainly by supporters of the opposition parties ANO and Freedom and Democracy (SPD), as well as non-voters.
The current cabinet has been facing rising prices and other impacts of the Russian attack on Ukraine, which started last February. Over the past few months, protests against the government have been held repeatedly in the Czech Republic. On Sunday, thousands of people demonstrated at Wenceslas Square in Prague, with speakers calling for strikes and the resignation of the government.
In March, some of the participants in one demonstration tried to enter the National Museum building and tear down a Ukrainian flag.
Last September, around 70,000 people gathered at a protest rally calling for the government’s resignation. The organisers criticised the government over soaring energy prices and the pro-Western stance of the current cabinet.
The survey was conducted by CVVM from 31 January to 20 March on a sample of 861 Czech residents over the age of 15.
Appointed in December 2021, the Fiala cabinet comprises the three-party Spolu alliance of ODS, the Christian Democrats (KDU-CSL) and TOP 09, as well as the Mayors and Independents (STAN) and the Pirate Party.
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