ČSSD majority to slow reforms

A Social Democratic Party (ČSSD) majority in the Senate, won after last weekend's elections, will complicate the quick passage of economic reforms, but it doesn't mean the Cabinet's austerity measures will be threatened or fail to pass.

The Senate has the ability to veto legislation approved by the Chamber of Deputies, but a veto only sends bills back to the chamber, which can then take another vote to overturn the veto with a simple majority.

The left-leaning opposition ČSSD opposes many of the social welfare cuts the government has proposed in order to cut the budget deficit and steer public finances to a more sustainable path.

Following elections, ČSSD Deputy Chairman Zdeněk Škromach told Czech Television his party would veto any proposed legislation that is "very restrictive and inappropriate."

"There will certainly be amendments to laws affecting workers and families with children," he said.

The party won a narrow majority with 41 seats in the 81-seat Senate in the Oct. 22-23 elections. The tri-partite coalition of Prime Minister Petr Nečas' ODS, TOP 09 and Public Affairs still holds a strong majority in the Chamber of Deputies, with 118 seats out of 200.

"We simply have to take into consideration the fact that the approval of laws will take five weeks longer," said Finance Minister Miroslav Kalousek (TOP 09) following the election results.

Investors and the markets don't seem worried that the elections could affect the government's commitment to public reforms, Markéta Šichtařová of NextFinance told The Prague Post, based on markets following the elections.

"There was absolutely no change in the Czech crown; it didn't change even a tiny percentage, which means foreign investors and speculators are not concerned and are not focusing on elections," she said.

What the elections could mean, however, is a signal to the government that pubic opinion has changed since earlier this year. Parties were elected in the spring for their fiscally conservative platforms when voters were hearing about Greek woes, rumors of a fracturing eurozone and countries flirting with bankruptcy, she said, but attitudes have relaxed concerning the economy since, and voters may be pushing back against tough austerity measures.

"Now the situation has changed significantly, and the Senate elections show that the opinion of voters has changed," Šichtařová said. "The right doesn't have as strong support as it used to in past months, and of course, if the government wants to keep voter support, they might be motivated to take a step back from some reforms."

Claire Compton can be reached at
ccompton@praguepost.com