Opposition Stalls Vote on Fiscal Rules as Schillerová Pushes for Reform

The Chamber of Deputies of the Czech Parliament is dragging out a vote on an amendment to the country's fiscal rules, with the opposition resorting to obstruction tactics even at the stage of approving the meeting's agenda. At issue is a law that President Petr Pavel vetoed and sent back to lawmakers, which the government now intends to override.

Finance Minister Alena Schillerová (ANO) defends the amendment as essential for drawing up a legal and realistic state budget. Without changing the rules, she says, next year's budget deficit would have to be cut from the current 310 billion crowns to roughly 150 billion.

"If the president, through his veto, is simultaneously demanding that we keep the old national limits — under which the 2027 budget deficit must not exceed 150 billion crowns, meaning halving it in a single year from the current 300 billion — while at the same time calling on us to sharply increase defence spending by tens of billions, does he realise what consequences his veto will have for the country's security?" Schillerová said.

What the Amendment Changes

According to the finance minister, the current rules would severely limit the government's ability to fund not only defence but other priorities as well, including healthcare, education, domestic security, transport and the pension system.

The amendment would exclude defence spending above 2% of GDP from the expenditure framework through 2036. A similar exemption is planned for a number of strategic infrastructure projects. In addition, if the security situation worsens, the government would be able to increase budget spending by up to 10% without prior approval from the Chamber of Deputies.

Schillerová rejected opposition accusations of reckless debt growth. She said the new fiscal-structural plan envisages the public finance deficit rising to 2.8% of GDP next year before gradually declining. "This is a clear and responsible path to consolidation," the minister said.

Opposition Threatens Constitutional Court Challenge

Citing warnings from economists, opposition parties argue the opposite — that the amendment would seriously weaken fiscal discipline and parliamentary oversight of government spending. STAN party leader Vít Rakušan said the ruling coalition stands to benefit from a growing national debt. "They don't care about the future, they don't care how the next generations will live," he said.

Pirates leader Zdeněk Hřib compared the amendment to a credit card issued in the name of Prime Minister Andrej Babiš (ANO). "The government wants this kind of credit card for Andrej Babiš, so it can pile up national debt without any limits or oversight. It will be our children — and even our children's children — who end up paying for it," he said.

The opposition began delaying proceedings already at the stage of approving the meeting's agenda, raising issues such as the government's summer scandals, the drought, personnel reshuffles at Prague Airport, child protection and affordable housing. Christian Democrat faction leader Marian Jurečka had warned in advance that the opposition would continue its delaying tactics.

The ruling coalition has the required minimum of 101 votes to override the veto, commanding 108 deputies in total. Should the amendment nonetheless pass, opposition parties intend to challenge its alleged unconstitutionality before the Constitutional Court.

Source: novinky.cz