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No-confidence Vote Scheduled For Thursday

CZECHIA
  • The Communist Party leadership plans to debate whether its deputies should back other opposition parties in a no-confidence vote against Prime Minister Andrej Babis' minority government scheduled for Thursday, according to Bloomberg.
  • As a reminder, opposition parties have tried to remove leader Babis from power (over terrible management of the Covid19 crisis and conflict of interest over his control of trust funds linked to his Agrofert business empire), but have very little chance in doing so and therefore the Czech legislative election is very likely to be held as originally planned on October 8/9.
  • Yesterday, we saw that GDP growth contracted by 2.1% in Q1 (as expected, second print), and manufacturing PMI rose to a new high of 61.8 in May (vs. 59 exp.).
  • Next economic data to watch is the average real monthly wage YoY coming out on June 4; next CPI print (for May) will come out on June 10.

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