Tax vote delayed as threat to cabinet remains

The ruling Czech Civic Democrats will try to delay a confidence vote tied to an unpopular law to raise taxes, after failing yesterday…

The ruling Czech Civic Democrats will try to delay a confidence vote tied to an unpopular law to raise taxes, after failing yesterday to quell a revolt by six of its deputies that threatens to bring down the cabinet.

The government has insisted it use tax increases and spending cuts to bring its budget deficit below 3 per cent of gross domestic product next year, a stance that has brought the cost of borrowing to all-time lows but also extended the longest recession in the EU’s emerging east.

“We failed to find an agreement at the morning meeting of our working group, and at this point the most rational way is to propose an interruption of the parliamentary session until next Tuesday,” Civic Democrat parliamentary faction chief Zbynek Stanjura said.

“We will vote next week no matter what, even with the risk that the government will not survive.”

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The dissenters said they would support the delay to leave room for more talks.

Prime minister Petr Necas will defend his party chairmanship as well as the cabinet’s policies at a congress this weekend.