UPDATE 2 - Nečas: We have a deficit below three percent of GDP, it is not without Package

PRAGUE (MEDIAFAX) - (The report was updated in the 5th and 7th paragraphs for more information.)

ODS chairman and Prime Minister Petr Necas considers that the tax package is a decent political compromise which is necessary for the Czech Republic. We have a deficit below three percent of gross domestic product, without this package, you can not, the Prime Minister said in Sunday's debate Czech Television Moravec.

"The increase in VAT is a standard tool of the state governments in the European Union," pleaded Necas tax package.

Connection requests to the package with confidence in the government consider his opponents as stupid. Prime Minister but in this context he said that he had such an opinion none of disaffected Democrats, including civil Petra Tluchoř eyes say.

Rebellious MPs suggested as a possibility of reducing the tax changes from three years to one year. "I will now evaluate individual proposals," said Necas with it, it will not send messages through the media. Pointed out, however, that the increase in VAT, the proposal of the Minister of Finance Miroslav Kalousek (TOP 09), but the coalition agreement.

Disputes on the future rate of value added tax may cause Necas said that there is a provisional budget. Uniform VAT rate of 17.5 percent Necas refuses. It would mean in his words, to increase the state budget deficit of 24 billion crowns.

Necas believe that eventually occurs in ODS match: "Granted, it's not clear the government proposal, but it will not be clean design my six colleagues."

The Prime Minister is also convinced that common sense will prevail and his Cabinet will continue to govern and fulfill its reform program. Early elections are not in his words, a victory for any of the political actors. In the event of a fall the Government considers Necas but logical to combine early elections to the House with the presidential election.

Cabinet this week approved its re-pack tax laws, which may include an increase in VAT and real estate transfer tax or the introduction of a "millionaire's tax" and again it has returned to the game. His approval in the House, however, this time will be associated with trust the government and should be approved within three months. Coalition government is responding to a situation where six members of the ODS stabilization package returned Deputies of the Senate did not support.

Denisa Šindlerová, sindlerova@mediafax.cz