Economic policy tensions rise in Czech Republic and Slovakia

Political developments in the Czech Republic and Slovakia highlight ongoing tensions regarding economic and social reforms. In the Czech Republic, the government faces opposition in parliament that seeks to block various legislative proposals intended to support the economy and citizens. Labor unions have noted that while some measures, such as electricity price reductions, have been successful, significant changes—including proposals to cap the retirement age at 65 and allow early retirement for high-risk professions—remain stalled due to political resistance.

In Slovakia, opposition MP Ondrej Dostál (SaS) has criticized Prime Minister Robert Fico's decision to abolish the transaction tax. Dostál argued that the tax was poorly implemented from the start and that Fico is attempting to claim credit for economic growth through this single measure, despite the government's long-term responsibility for the country's economic state. Concerns have also been raised regarding how the government will compensate for the lost revenue resulting from the tax's removal, given existing budgetary gaps.