Czech Economists Warn Against Loosening Budget Rules

About twenty Czech economists signed an open letter warning that the proposed amendment to the budget‑responsibility law would allow government deficits to exceed the 3 % of GDP limit and create loopholes for infrastructure PPP projects and security‑council‑based spending, including a possible 10 % increase in expenditures.

The letter urged parliamentarians to curb these provisions. President Petr Pavel vetoed the bill, citing threats to long‑term fiscal sustainability and reduced parliamentary control over public finances. Finance Minister Alena Schillerová defended the changes as needed to support investment and security, while Prime Minister Andrej Babiš dismissed the economists’ criticism as politically motivated.