Czech Parliament Approves Broad Fiscal Reforms

Vladimir Spidla's cabinet survived a confidence vote and pushed through a crucial package of financial reforms that should strengthen the coalition government's shaky hold on power. The lower house of parliament approved all 11 bills of a major public finance reform package. The government will now have more time to prepare further reforms in the months before the Czech Republic officially joins the European Union on 1 May 2004. The reforms, which require all ministries to trim their budgets, have led to one minister's departure, helped trigger a teachers' strike and other union protests, and pushed Social Democrats (CSSD) deputy Josef Hojdar out of the party parliamentary faction, saying the stringent budget cuts violated the party's principles. Spidla has said his job depends on passage of the reform package, which aims to gradually cut the state deficit, now at more than 100 billion crowns. The 11 bills still have to be approved by the senate in October and also need President Vaclav Klaus's signature.