ČSSD proposes active measures to stabilize public finances and support economic growth
2011-11-08 With respect to the 2012 budget, ČSSD proposes active measures to stabilize public finances and support economic growth. Considering that the government of Petr Nečas has once again submitted an unrealistic budget which completely ignores the need to promote employment and social cohesion, to stabilize public budgets or to stimulate economic growth, ČSSD is unable to support such a budget bill.
With respect to the 2012 budget, ČSSD proposes active measures to stabilize public finances and support economic growth.
Considering that the government of Petr Nečas has once again submitted an unrealistic budget which completely ignores the need to promote employment and social cohesion, to stabilize public budgets or to stimulate economic growth, ČSSD is unable to support such a budget bill.
Given the expected slowdown of the Czech economy and the growing risk of rising unemployment and decreased tax revenue, ČSSD asks that the government take active steps within the limited range of current public finances to confront the greatest risks of 2012.
In the interest of stabilizing public budgets and supporting economic growth, ČSSD proposes seven specific measures:
1. Fight tax evasion based on current legislation, combat the “Švarc system“ and not support it through proposed legislation, thoroughly fight against unreported “under the table“ employment.
2. Postpone, or better yet, eliminate the introduction of the second pillar pension reform. In doing so, the government will save at least 20 bil. CZK annually and pension funds will not run the risk of losing the savings of Czech citizens through the continued turbulence of financial markets.
3. Eliminate tax reforms which further reduce tax revenue and encourage a transition to the Švarc system. This will save the government 15 billion crowns annually.
4. Stop dismantling the network of employment offices. This is only being done so that certain private agencies and software companies may profit.
5. Take all necessary steps to quickly and thoroughly draw all European funds allocated to the CR. The government should negotiate the transfer of funds from programs where no funds are being drawn to those which are drawing funds, namely the Regional Operational Programs.
6. Increase active employment policies as a means of increasing employment among vulnerable groups of citizens on the labor market and preventing the escalation of tension in poor and socially excluded areas.
7. Pursue an economic policy targeted at creating the best possible conditions for Czech companies within the EU, while providing the greatest possible government support (including economic diplomacy and bolstering the trade offices of key embassies) to expand markets beyond the European Union including China, India, Brazil, and other markets growing more quickly than the Euro zone.
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