CZECHIA: New Gov't Commits To Keep Budget Deficit Below 3% Of GDP EU Limit-iDNES

Local news outlet iDNES.cz reports that according to a final draft policy agreement from the three parties set to form the next gov't coalition, they have agreed to maintain public finances safely below the 3% of GDP deficit limit set by the EU's Stability and Growth Pact. The article also claims the agreement, to be presented on Monday, 3 Nov, "expected to reintroduce the EET, return discounts on [public transport] fares for students and seniors to 75%, or cap the retirement age at 65."

• iDNES gets comment on the final draft from Jan Kubacek at Charles University in Prague, who notes, "It's a very ambitious plan and negotiated in such a way that even opposition MPs can't attack it that much. After all, no one wants poor healthcare, unaffordable housing, or not contributing to firefighters, police officers, or teachers. The main criticism is where the likely government wants to get the money for this, given the state's broken coffers."
• The report claims that the draft is almost entirely focused on domestic policy, with "the foreign and security policy in the statement is completely in line with the policy of the current President Petr Pavel" according to Kubacek. There was likely some concern in Brussels that a coalition including the far-right SPD and AUTO could have pursued an anti-EU, anti-NATO line. However, it appears presumptive PM Andrej Babis, not keen for fights with Brussels on foreign policy issues, has forced both parties to give up this rhetoric in exchange for inclusion in gov't.