Deputies Approve Fiscal Consolidation Package In First Reading

The Chamber of Deputies passed the government's fiscal consolidation package in first reading after a debate lasting more than 27 hours. Finance Minister Zbynek Stanjura said that the package will now be discussed at committee level, before being sent back to a plenary session in early September.

• As the debate went on in parliament, coalition representatives met yesterday to discuss a list of several dozen amendments proposed by lawmakers from the ruling bloc. Seznam Zpravy reports that the bulk of the proposed amendments concern tweaks to VAT rates applied to different items.
• Stanjura refused to provide any opinions on the proposed amendments and said that negotiations will continue, although he does not expect many changes to the original version of the package.
• The structure of the fiscal consolidation package will be consequential for markets insofar as it affects inflation dynamics and CNB rate outlook, with the central bank monitoring the implementation of the austerity measures.