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Top Court Upholds Law on Curbing Pension Growth

CZECHIA

The Czech Republic’s highest court upheld a law on curbing pension growth, rejecting a legal challenge that threatened to derail government efforts to cut budget deficit, Bloomberg report:

  • "Changing the inflation-adjustment formula for retirement benefits was part of Prime Minister Petr Fiala’s plan to reverse the pandemic-era debt spiral. The measures, which also included tax hikes and spending cuts, triggered public protests and hit the cabinet’s popularity." Bloomberg write.
  • The ruling on a legislation was designed to save the state about CZK 53bln ($2.3 billion) in total in 2023 and 2024.

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