The Czech Republic’s umbrella trade union organization has voiced strong protest against the government’s proposed austerity package, arguing that it will place an excessive burden on the weakest social groups. The unions’ head Josef Středula announced a strike alert before negotiations with government officials and employers began. Prime Minister Petr Fiala called the unions’ stand “irresponsible”.
Employers’ representatives and the Czech Chamber of Commerce expressed appreciation of the government’s efforts to lower the state deficit, but asked for further talks regarding some of the measures that will affect local businesses. The prime minister said minor alterations to the package were possible, but he would not allow it to be eroded by radical changes.
The austerity package aims to save 94 billion crowns in 2023 and will mean higher taxes for companies and individuals, layoffs or reduced salaries in the public sector, an end to all non-investment subsidies, the scrapping of work benefits and higher sickness insurance for employees, a slower growth in pensions and VAT alterations which will further increase the prices of goods and services. The five party ruling coalition has said the proposal presented was the best possible compromise.