TNBiz (TNBiz)
Finance  |  September 14, 2010 20:13:00

The agreement between the government and unions back there


Mediafax

PRAGUE (MEDIAFAX) - The agreement between the government and unions to avoid or at the hearing on the budget for next year, mainly trade unionists matter cuts. Prime Minister Petr Necas (ODS), however, after tripartite negotiations on Tuesday said the government still insists on deficit 4.6 percent of GDP.

"In a number of things came disapproval, especially from trade unions, but the government also continues to stabilize public finances, which means a deficit of 4.6 percent of GDP next year, the state budget is 135 billion crowns," Necas said.

"We acknowledge the need for cuts and we understand that on the budget for next year was little time, so it is mainly based on the cuts.We strongly welcome the intervention by government because the private sector in the past two years, the crisis suffered enough, "said Jaroslav Hanak, Vice President of the Confederation of Industry.

Employers, however, disagrees with the three points. First of all, it's another week of sick leave, which would have to pay their employers. "Furthermore, we do not like fall for the construction of infrastructure, because we believe it will threaten the competitiveness of the Republic," said Hanak.

The third thing employers do not like the distribution of funds for science and research. "I have nothing against academics and basic research, but they have their certain. The others get less," said Hanak.

The sharpest criticism came as expected unions. "We do not like in particular, that the budget is built only with changes on the expenditure side.In our view, the changes have happened more on the revenue side, because there is a massive loss of revenue since the days of Topolanek's government, "said President of the Czech-Moravian Confederation of Trade Unions (CMKOS) Jaroslav Zavadil.

Cuts in the wage bill and changes in the way of pay as Zavadil cause deterioration of police services, health and other public services.

"I told the public one crucial thing. Reducing the wage bill is not the same as wages. Often confused even the media, but it's not the same thing," he joined the debate, Finance Minister Miroslav Kalousek (TOP 09).

Necas to Zavadilová statement added that the government sees tax increases space. "Currently, fragile recovery really is no room for tax increases, especially since the tax hike was already with theJanotovým package, "said the Premier.

The discussion in the tripartite still lead the way in which the government wants to achieve savings of ten percent of wages. With the change in tariffs is strictly unions disagree. The Prime Minister said that this question is still room for maneuver. What the government takes is saving the money itself. "Even if we beat unionists caps and forces of the past we chropět:, ten percent down, '" concluded Necas.

George Taborsky, taborsky@mediafax.cz

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