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Last Updated: Friday, 26 September, 2003, 08:58 GMT 09:58 UK
Czech PM survives vote
By Rob Cameron
BBC correspondent in Prague

Vladimir Spidla
Mr Spidla is not out of the woods yet
The Czech Government has survived a vote of no confidence in parliament amid criticism of its package of planned public finance reforms.

The reforms, which include cuts in pensions and sickness benefits, are designed to prepare the Czech economy for eventual adoption of the euro.

But the opposition has accused the centre-left coalition of leading the country towards financial ruin.

Few observers believed Prime Minister Vladimir Spidla would lose Friday's vote, even though his government has a majority of just one seat in parliament.

Several MPs from Mr Spidla's Social Democratic Party had expressed their opposition to the spending cuts and some had even predicted the government's downfall over the reforms.

In the end, those fears proved groundless.

All but one coalition MP voted with the government on Friday and the public spending reforms are enjoying a surprisingly smooth passage through parliament.

The reform package now faces a final vote in the lower house, paving the way for the approval of next year's budget.

But Mr Spidla is not out of the woods yet.

The spending cuts are opposed by both the unions, who say they are too drastic, and analysts who say they do not go far enough.

Public approval ratings for the government, which came to power last year, have fallen from 72% to 27%.

The prime minister must still convince the people that these spending cuts are truly essential for the Czech economy.


SEE ALSO:
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22 Jul 03  |  Business
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12 Jul 02  |  Europe
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