Parliament rejects 6,000 CZK allowance for pensioners

Kateřina Eliášová
23. 4. 2008 12:00
The opposition´s proposal rejected by parliament

Praha - Czech government rejected yesterday a proposal by Social Democrats and the Communist Party to give a one-time allowance of 6,000 CZK to every pensioners.

From 154 MPs present 78 MPs said no, so the proposal did not come through during the first hearing.

The social democrats and former labor minister Zdeněk Škromach who is the one of the proposal advocates wanted to compensate the impacts of the reform and growing inflation.

"The inflation with the pensioners has reached 10 percent in the first quarter," said Škromach in parliament.

"Without your reform the inflation would be around 3 percent and we would have the problems we are having now,"  said Social Democrats´ vice-chairman Bohuslav Sobotka.

Labor minister Petr Nečas warned that the opposition´s proposal could threaten the pension system.

"As much as I understand the proposal and the opposition´s motivation, it is not possible to implement it neither from the social nor from the political point of view,. It would result in a deficit in the pension scheme," said Nečas.

Minister Nečas counted that the one-time allowance of 6,000 CZK would mean altegether 17 billion extra in the budget. That would siphon all the funds in the pension budget.

The government valorized the pension allowances in April this year.

 

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