Czech workers rally against austerity plans

22 May, 2011

Tens of thousands of Czechs marched in Prague on Saturday against the government's plans to reform pensions, healthcare and social benefits, saying they were anti-social and damaging for the economy. Union leaders, who estimated more than 40,000 people gathered at the rally in the city centre, said its members would bear the brunt of the reforms in the European Union nation and called for a new election.
"We are refusing your pension theft," union leader Josef Stredula told the crowd at Prague's central Wenceslas Square. The Czech Republic's debt is about half of the EU average but is expected to rise without reforms. The government wants to cut the public sector deficit to 4.2 percent of gross domestic product this year and balance the budget by 2016.
The reforms include raising the retirement age, diverting part of pensions to private funds, raising payments for healthcare and tightening social benefits. The centre-right cabinet aims to submit reforms to parliament in June, although progress has been hampered by infighting and corruption allegations among the three coalition parties. If the coalition breaks up, the cabinet would lose its parliamentary majority. However, a drop in their popularity has given an incentive to all the ruling parties to avoid an early election. The next scheduled election is due in 2014.

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