PRAGUE: President Milos Zeman appointed a new centre-left cabinet yesterday, ending a seven-month power vacuum that has hampered policy decisions that the Czech Republic needs to boost recovery from its longest recession.
Zeman appointed ministers from three coalition parties who formed a parliamentary majority after an early election in October.
The coalition, led by Prime Minister Bohuslav Sobotka, plans to ease some fiscal restrictions imposed by the former centre-right cabinet, bring the country closer to the euro zone and clamp down on corruption — the election’s main theme.
“I am convinced this government will bring the economic growth, prosperity and the stability (the country) needs,” Sobotka said after the appointment ceremony.
“We want to pursue a socially sensible and just policy.”
Sobotka takes over from a caretaker administration that has governed since a centre-right cabinet collapsed in a sleaze scandal last June.
The Social Democrats aim to raise taxes, below the EU average but higher than in most new EU member states at around 35 percent of gross domestic product, to fund increases in wages, pensions and welfare.
They plan to run budget deficits under the EU’s 3 percent limit, abandoning previous aims to eliminate deficit funding and halt growth of debt, low by European standards at around 46 percent of GDP.
REUTERS
