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CZECHIA: Minister Bartos's Ouster Triggers Gov't Crisis, CNB Rate Decision Eyed

CZECHIA
  • Prime Minister Petr Fiala asked President Petr Pavel to dismiss Regional Development Minister and Deputy Prime Minister Ivan Bartos. This came after the two politicians met to discuss the future of the governing coalition in the wake of Bartos's decision to announce his imminent resignation as Pirate Party leader. Bartos presided over the Pirate Party's dismal performance in the recent regional elections and came under growing criticism from coalition partners and the wider public amid his botched attempts to reform the construction permit system. The latter was the reason cited by the Premier as he announced Bartos's dismissal. Following Fiala's announcement, Bartos said that the move was a violation of the coalition agreement, but did not go as far as to declare his party's withdrawal from the government - albeit many watchers believe that this would be a logical conclusion of the crisis. Fiala's decision came as his administration is trying to regain poise ahead of next year's parliamentary election, with the main opposition ANO party which remains the front-runner in opinion polls. Local political commentators noted that this is the first time when the government has plunged into an open crisis as accumulating tensions boiled over. Analysts speaking to Seznam Zpravy suggested that the decision was also an opportunity for PM Fiala to "flex muscles" and reassert control over his government at a relatively low cost, given the Pirates' precarious position. Meanwhile, Foreign Minister Jan Lipavsky told journalists that he would leave the party should the Pirates pull out of the ruling coalition, with Denik N reporting that he is being courted by TOP 09.
  • On the fiscal front, the cabinet is due to meet this morning to discuss amendments to the 2024 state budget and the 2025 budget draft. A press briefing is expected at 15:00BST/16:00CEST. The Finance Ministry proposed to raise this year's deficit target by CZK30bn to CZK282bn and next year's target by CZK10bn to CZK240bn due to the recent floods. Pirate Party's Ivan Bartos said he would attend the meeting.
  • The Czech National Bank (CNB) will announce its monetary policy decision at 13:30BST/14:30CEST, with a press conference due to follow at 14:45BST/15:45CEST. We have published our usual preview of the decision (see here).
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  • Prime Minister Petr Fiala asked President Petr Pavel to dismiss Regional Development Minister and Deputy Prime Minister Ivan Bartos. This came after the two politicians met to discuss the future of the governing coalition in the wake of Bartos's decision to announce his imminent resignation as Pirate Party leader. Bartos presided over the Pirate Party's dismal performance in the recent regional elections and came under growing criticism from coalition partners and the wider public amid his botched attempts to reform the construction permit system. The latter was the reason cited by the Premier as he announced Bartos's dismissal. Following Fiala's announcement, Bartos said that the move was a violation of the coalition agreement, but did not go as far as to declare his party's withdrawal from the government - albeit many watchers believe that this would be a logical conclusion of the crisis. Fiala's decision came as his administration is trying to regain poise ahead of next year's parliamentary election, with the main opposition ANO party which remains the front-runner in opinion polls. Local political commentators noted that this is the first time when the government has plunged into an open crisis as accumulating tensions boiled over. Analysts speaking to Seznam Zpravy suggested that the decision was also an opportunity for PM Fiala to "flex muscles" and reassert control over his government at a relatively low cost, given the Pirates' precarious position. Meanwhile, Foreign Minister Jan Lipavsky told journalists that he would leave the party should the Pirates pull out of the ruling coalition, with Denik N reporting that he is being courted by TOP 09.
  • On the fiscal front, the cabinet is due to meet this morning to discuss amendments to the 2024 state budget and the 2025 budget draft. A press briefing is expected at 15:00BST/16:00CEST. The Finance Ministry proposed to raise this year's deficit target by CZK30bn to CZK282bn and next year's target by CZK10bn to CZK240bn due to the recent floods. Pirate Party's Ivan Bartos said he would attend the meeting.
  • The Czech National Bank (CNB) will announce its monetary policy decision at 13:30BST/14:30CEST, with a press conference due to follow at 14:45BST/15:45CEST. We have published our usual preview of the decision (see here).