Czech President Signs Deficit-Control Measures into Law Amid Opposition

The new laws, resulting from a compromise by the ruling coalition, include tax hikes and budget cuts expected to significantly reduce the budget deficit.

• Czech President Petr Pavel has signed into law an economic package of measures introducing budget cuts and increased taxes to control the budget deficit.
• The measures include increased taxes on alcoholic beverages, medicine, and businesses, with corporate taxes rising to 21%.
• The government expects the measures to reduce the budget deficit by 97 billion Czech crowns ($4.3 billion) next year and by 150 billion ($6.7 billion) in 2025.
• The package is a result of a compromise reached by Prime Minister Petr Fiala’s five-party ruling coalition.
• Labor unions have called for a day of protests and strikes on Monday, and the opposition plans to take the matter to the Constitutional Court.

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