Reform is one big compromise

There are so many controversial cities in the reform of public finances that perhaps there would be at least one. This is the bottom of the fact that we now have only one hundred votes in a two-hundred-member House of Representatives.

In other words, reform is one big compromise that cannot satisfy anyone in all respects. I’m afraid that with the current distribution of forces, we couldn’t do much better. There is no consensus on a reform of the reform, and it probably won’t be in the near future. The only thing on which the overwhelming majority is chosen is the same that reform is needed.

The economy is at that age. Eclipse

From my point of view, public finances still have a time bomb. The draft budget for five years is still a sweat with a deficit exceeding 70 billion crowns.

At the same time, they choose to ask me what the budget deficit would look like if the economy did not succeed. For five years now, from the point of view of the last 10 years, it will still be economically above average. The economy will grow by about 5 percent and the unemployed will probably go less than today. Now there is no unemployment since 1998 and 2.4 applicants will apply for one vacancy, while in 2001 it was almost 14 applicants.

What would the state budget look like if, for example, there was an economic crisis abroad due to bad mortgages, the economy would slow down sharply and unemployment would grow rapidly? Businesses would lose, lose money, and cash incomes would fall, while a growing army of the unemployed would reach out to hundreds of people. Would a deficit be below 150 billion crowns?

Problm je ve vysokch vdajch sttu
The controversy is mainly how finances are lit. The public focuses mainly on the income side of the budget. This is not the main problem of public finances. They should just be married. They are growing rapidly even with the current very favorable macroeconomic development. This is probably where the dispute starts, not if everyone is to be taxed at the same rate.

Until the voters in the elections have told politicians that they want painless change to not exist, we will never achieve real reform. On the contrary, we will still run the risk that one day the economy will need to be reformed and it will hurt more.