Czech government cuts budget deficit by just 3bn, to 386bn crowns

The Czech government has concluded difficult negotiations over the final version of next year's budget. The originally planned deficit of 389 billion crowns was trimmed by only three billion, to roughly 386 billion, and the structure of spending barely changed: as the dominant party in the coalition, the ANO movement got what it specifically wanted. According to the National Budget Council, the decision puts the Czech economy on a “downward slope” that ultimately leads to a debt trap.

The government defends its version of the budget

Prime Minister Andrej Babiš and Finance Minister Alena Schillerová disagree with that assessment. In their view, the budget is honest and focused above all on investment, while still preserving social peace in the country. That is why public-sector salaries are being raised, and pensioners, in addition to the usual pension indexation, will receive a one-off payment of 2,000 crowns. The government promises a genuine “diet” later: over the coming years, the deficit is meant to fall from 3.5% to 2% of GDP.

Meeting with Meloni and criticism of the judiciary

Exactly where the prime minister intends to find 155 billion crowns in savings is what he will be asked today, live on air, in the traditional fifteen-minute conversation with journalists. Besides the budget, the discussion will also cover his meeting with Italian Prime Minister Giorgia Meloni, who came to Prague for a short visit. The host wants to know what Czechia can learn from Italy, whether Meloni — whom the Czech prime minister himself calls Europe’s most successful politician — can help push through changes to the emissions trading system, and whether the two leaders' views align on European Commission President Ursula von der Leyen’s state-of-the-union address and on the threat, both hybrid and real, from Russia.

A separate topic will be the sharp criticism triggered by the ANO leader’s recent remarks about judicial independence. Babiš said that “there is a mafia operating in this country that puts people behind bars on order,” and that “some judges hand down rulings without evidence.” What exactly he meant is something the prime minister will have to explain on air.

Source: denik.cz