CZECHIA: FinMin Stanjura Outlines 2026 Fiscal Plan With CZK280bn Deficit Target
Aug-28 07:47
- Three regional courts rejected complaints against the far-right SPD party after its rivals accused it of being a coalition in disguise, arguing that the matter is essentially decided by self-identification. The SPD has formed an electoral pact with Trikolora, PRO and Svobodny, but they are registered as a single-party committee, which lowers their electoral threshold to 5% from 11% for coalitions. The courts are yet to rule on similar complaints against the post-communist Stačilo! party, which has partnered with SOCDEM and two smaller parties, and the Pirate Party, which cooperates with the Greens in a couple of regions. The deadline for these verdicts is in the middle of next week. The only official coalition registered for the upcoming elections is the ruling Spolu, which consists of ODS, TOP 09 and KDU-ČSL, and faces a higher 11% electoral threshold.
- Finance Minister Zbyněk Stanjura presented the outline of the 2026 state budget to his Cabinet colleagues yesterday. Industry and Trade Minister Lukáš Vlček told reporters that the draft envisages a deficit of CZK280bn (versus CZK241bn this year), but the discussion is set to continue in September, with Prime Minister Petr Fiala noting that ministers' demands exceeded their allocations. Deník N reported that he managed to fill the gap in funding for Ukraine aid.
- Seznam Zprávy reported that the government was in possession of expert analyses suggesting that it has to recover billions in subsidies obtained by opposition leader Andrej Babiš's Agrofert already in 2022, but has acted on them only a month or so before parliamentary elections. This may trigger accusations of a politically motivated delay, with the ruling coalition facing an uphill battle against Babiš's ANO party.
- There is little of note on the local data docket today. The CZSO will publish flash Q2 GDP data tomorrow morning, with July money supply data due shortly after.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US: Trump Post on North Sea Oil
Jul-29 07:45
Donald J. Trump
@realDonaldTrump
North Sea Oil is a TREASURE CHEST for the United Kingdom. The taxes are so high, however, that it makes no sense. They have essentially told drillers and oil companies that, “we don’t want you.” Incentivize the drillers, FAST. A VAST FORTUNE TO BE MADE for the UK, and far lower energy costs for the people!
BUNDS: Testing Intraday low, Heavy volumes goes through in ERZ5
Jul-29 07:32
- A new intraday low for Bund, but very little in term of size flow going through, in fact the volumes for this time of the day are way below averages.
- The Bobl supply is heavy and has been helping some of the small downside early flows.
- The most notable size going through is in the ERZ5, sold in 10k, and this expiry already trades 3 times the rest of the White strip.
- No Block trade have printed in ERZ5.
EURIBOR: Record Volume day in the Calendar spread Yesterday
Jul-29 07:21
- We noted some notable early flow in the Blue (Euribor) ERH9/M9 calendar spread, being sold down to 4.5 from a 5.5 record high printed last Week, and also a massive day in the ERM7/U7 spread seller at 7.5.
- While the Volume is those Calendar spreads are non existent today, the chart clearly shows a record day in the ERM7/ERU7 Yesterday.
- Also note that plenty more were done on legs, so not showing in that total outright volume.
(Chart source: Bloomberg Finance LLP/MNI).
