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Europe Live Sunday 26th May 2013

New Austerity Measures in the Czech Republic

16th April 2012

The Czech government adopted another austerity plan on 10th April to limit the country's deficit to 2.9% of the GDP in 2013 and 1.9% in 2014. Amongst other measures there will be tax increases and a limit on the indexation of pensions. The adoption of this plan over a three year span puts an end to a conflict within the tripartite Czech coalition. The centrist party, Public Affairs (VV) indeed threatened to withdraw its ministers from government if such measures were not adopted rapidly.

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