The government coalition has completed long, hard and fair negotiations on the consolidation package, it is now up to the government to fine-tune its details. Finance Minister Zbyněk Stanjura (ODS) told journalists after a two-hour meeting with President Petr Pavlo. According to him, the negotiations must end this Wednesday. He said that the consolidation package must reduce the state budget deficit by 70 billion crowns.
The government wants to present the package for the consolidation of public finances and the details of the pension reform shortly before noon on Thursday. The coalition last discussed the package on Tuesday, a six-hour session that stretched past midnight and into Wednesday. Negotiations will continue this Wednesday with the government and later also within the coalition.
Pavel’s meeting with Stanjura was originally planned for an hour, but it lasted two hours. According to the minister, the debate at Prague Castle was quite thorough and detailed, he feels good about it. He told Pavlovi what the government will present to the public at the press conference on Thursday. He did not want to give details.
According to Stanjur’s earlier statements, the package should reduce the structural deficit, i.e. the economy of the state adjusted for the effect of the economic cycle, by at least 70 billion crowns, which corresponds to one percent of the gross domestic product, from next year. Last year, the structural deficit was 2.6 percent of GDP.
According to the statements of the cabinet members, most of the austerity measures should be on the expenditure side of the budget, but the government is also planning to adjust the value added tax or abolish some tax exemptions.
Last week, Pavel spoke about the consolidation of public finances with Prime Minister Petr Fiala (ODS). The president said after the meeting that the government’s package would have to be well explained because it would be unpopular. According to Pavel, people must understand and understand most of the measures in order to be sure that it is the only possible solution.
