Gov't approves restitution deal

The government unanimously approved a restitution plan for churches harmed by the 20th-century communist regime Jan. 11, overcoming erratic last-minute objections from the junior coalition Public Affairs (VV) party.

Though the government had already informally agreed to a plan that would see 17 official churches receive some 59 billion Kč in compensation over 30 years, beginning in 2013, VV had sought to squeeze concessions out of the other parties at the eleventh hour, a move that saw Prime Minister Petr Nečas (Civic Democrats, ODS) pledge to end the government if the plan did not pass.

VV's demands were widely seen as the latest in a string of unpredictable policy shifts by the coalition's smallest party, which public opinion polls indicate will not make it into Parliament in future elections. The unusual demands by VV leaders, including the merger of two ministries, came as anti-corruption police recommended that VV's chief financier and unofficial leader Vít Bárta face criminal charges for bribery.

"We agreed with the prime minister that the money to be paid to churches would be gained from the state budget savings and red-tape reduction, and not from the budget cuts in particular sectors, not to mention welfare investments," VV Chairman Radek John said by way of explaining his party's eventual support for the restitution plan.

Nečas declined to comment specifically on VV's decision to support the same law that they were opposed to just hours earlier.

While the agreement calls for 59 billion Kč in payments, that number could balloon to as high as 96 billion Kč depending on the rate of inflation. Churches, with the Catholic Church as the largest beneficiary, will also get back 56 percent of real estate that had been confiscated by the state. The settlement also includes a gradual phasing out of public financing for churches - which at present amounts to around 1.5 billion Kč annually - over a 17-year period.

Officials offered praise of the restitution deal after a meeting of the Czech Association of Regions Jan. 13. The country is dotted by dilapidated buildings, with ownership that has been in limbo for more than two decades. This uncertainty made investors wary of either buying or renovating the properties out of fear they would be confiscated at some future date, leaving them to fall into disrepair.

The opposition Social Democrats (ČSSD) have said they will not support the restitution bill when it goes before Parliament, though the governing coalition has the votes to push it through the Chamber of Deputies and override a veto by the Senate - where the ČSSD has a majority - if necessary.

A recent public opinion poll found 70 percent of the public is against restitution payments. The Czech Republic is the last of the post-communist members of the European Union to agree to a restitution package for churches.

Benjamin Cunningham can be reached at
bcunningham@praguepost.com