Illustrative photo – Tripartite meeting, September 13, 2022, Prague. From left, Chairman of the Czech-Moravian Confederation of Trade Unions (ČMKOS) Josef Středula and Prime Minister Petr Fiala.
Prague – Representatives of the government, trade unions and employers will meet this afternoon to discuss the parameters of tax adjustments. The tripartite will also focus on measures due to energy prices, the impact of demographic changes on the labor market, and the analysis of the effects of European environmental legislation on households. It will also focus on the procedure for preparing the drawdown of European funds or larger transport constructions.
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In recent years, the Czech Republic has run deficits of one hundred billion. The government updated the program statement last week. In it, he states that in order to return to sustainable finances, in cooperation with the National Budget Council and the National Economic Council, the government will prepare and implement changes on the income and expenditure side. The cabinet deleted the promise to create a tax brake from the text. The Ministry of Finance has prepared material for the tripartite meeting with the parameters of possible tax adjustments. The Minister of Finance Zbyněk Stanjura (ODS) recently said that he will present the proposed changes in one package.
The tripartite should also discuss demographic development and its impact on the labor market. Czech society is getting older. Employers are already complaining about labor shortages. They warn of further worsening of the situation. In the 1930s, the most numerous generation of the so-called Husák children gradually began to retire. The number of young dropouts does not match.
Trade unionists from the Czech-Moravian Confederation of Trade Unions (ČMKOS) also want to talk about the upcoming pension reform. They complain that the cabinet does not discuss the intended changes with them and that they learn about them from the media. Leaders oppose the possible continuation of raising the retirement age. It is now gradually increasing and should stop at 65 in the 30s. Members of the government are talking about the fact that due to the indebtedness of the pension system and the effort to maintain pensions for future pensioners, the age limit will need to be pushed further, according to the extension of life. The growth could possibly gradually increase by roughly one year per decade. It could be increased up to the age of 68.
In the program statement, the Cabinet envisages that the pension should have three parts – basic, merit and savings. The increase of pensions during valorizations should be slowed down. The mandatory insurance payment period should be shortened. An earlier pension for demanding professions should be introduced.
