Vladimír Urbánek (Kurzy.cz)
Markets  |  February 06, 2013 12:21:00

NERV supports the adoption of financial institutions

National Economic Council Government initiated the Czech financial institutions. Agreeing above parameters is of course a matter of political compromise, but the adoption of the law should be, according to the National Economic Council in the interest of all political parties.

NERV supports the adoption of the constitutional law on fiscal responsibility, or so-called financial institutions. Its proposals in this area, the Council published a year and a half ago. "The aim was to propose measures that will mitigate the political mechanisms leading to increasing spending and debt," explained board member of NERV suggestions Tomas Sedlacek.

Question of the parameters of financial institutions has been of course a matter of political agreements, arranged form of government but the majority of the members of NERV supports. Adoption of financial institutions should be in the interest of all political parties. 'It should not happen that the proposal will be put off just because it will be the first to apply for this or that government. It is a long-term rules that set all governments debt brake, "said another member of the financial constitution NERV Michal Mejstrik.

The proposals NERV was the emergence of the budget of the National Council, which would supervise the government measures in the event of significant growth in public debt. With this institution also expected government proposal. "Some tie the hands of the politicians, but if we want to ensure the long term sound public finances, so it's necessary," the rationale behind the budget board member of NERV Jan Prochazka.

According to NERV's right to establish political accountability for budgetary discipline and sanctions for non-compliance, at least in the form in which it allows the government to draft financial institutions.Along with the budgetary objectives, expenditure frameworks and other measures mentioned by NERV it will improve budget management.

Source: Press Release Office of the Government

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