Czech interim cabinet to rule until May 2010 - Social Democrats

Paroubek pointed to the results of public opinion polls, revealing that the current cabinet is enjoying trust of 55 percent of Czechs.

After the Chamber of Deputies did not shorten its election term on Tuesday, regular elections can be held next May or earlier, Paroubek said.

Fischer said his cabinet would continue if the Chamber of Deputies voted again confidence in it and if the austerity package drafted by Finance Minister Eduard Janota were passed.

Under the proposed measures, the budget deficit is to be lowered from the suggested 230 billion to under 170 billion crowns next year.

Paroubek said the deficit of 230 billion was unacceptable for the Social Democrats. He spoke about 160-180 billion.

However, the Social Democrats disagree with the "Janota package" being passed as a whole, Paroubek said.

"As far as the sacrifices that are needed to cover the gaps in revenues are concerned, they must be brought by everyone," Paroubek said.

"It is absolutely unacceptable to vote about the entire package as a whole if we do not even exactly know what it contains," Paroubek said.

Sacrifices necessary to fill the gap in tax revenues should be made by everyone, not only by the people with low and medium incomes, he added.

Paroubek said the CSSD would hate to have VAT on food or medicines increased by 2 percent, while an increase in the basic tax rate could be spoken about.

Paroubek said Janota's package lacked measures to increase taxation of individuals with incomes over 100,000 crowns a month.

Paroubek said cuts in maternity leave benefits and family policy schemes were unacceptable. He said it was possible to save some 20 to 30 billion crowns by reducing the expenditures of individual ministries.

He also said he was for the payment of the 13th pension.

Representatives of leftist parties have made it clear they are not ready to pass the proposed package as a whole. They disagree with some of the measures and want to come up with their own solutions.

Leftist parties are against the planned cuts in expenditures and want to increase budget revenues through taxes.

The Civic Democratic Party (ODS) is of the view that the package should be passed as a whole and in a shortened procedure and the government should link with it a confidence vote.

A commission composed of representatives of parties is to discuss the package. Paroubek said the deficit of 160-180 billion should be reached through a political compromise.

At first early elections were to be held this October. But as the Constitutional Court ruled in September that the decision to call them was at variance with the constitution, a new date had to be sought.

Fearing that the Constitutional Court might again dismiss another proposal to hold the early elections in November, the Social Democrats withdrew their support to the plan on Tuesday. As a result, Fischer's interim government, formed in April after the fall of a center-right coalition government, may rule until the regular elections scheduled for next May.

($1=17.334 crowns)

Autor: ČTK
www.ctk.cz