Petr Fiala’s government promised to be different than Andrej Babiš’s — it is, but it’s even worse

FILE - Czech Republic's Prime Minister Petr Fiala speaks with the media as he arrives for an EU summit at the European Council building in Brussels, Friday, March 24, 2023. (AP Photo/Olivier Matthys)
By Thomas Brooke
7 Min Read

During the pre-election campaign, the now-governing ODS promised a conservative approach to leading the country and managing our money.

Prime Minister Petr Fiala and Finance Minister Zbyněk Stanjura vowed not to raise taxes, declared property tax as immoral, and stated that levies must not be increased for self-employed people and citizens must be left with as much of their money as possible. They said it long before the elections, they said it constantly in the years 2015-2021. They also said that the state budget must be reduced, that they would fire at least 13 percent of civil servants, that Babiš’s government had plunged the country into outrageous debt, and that above all, the state must save money instead of raising taxes for citizens. That’s what they talked about when they were in opposition.

Then they came to power and everything was different. According to them, 2022 was a record year — well a record for debt. In the first three months of this year alone, they were able to add 166 billion crowns (€7.1 billion) to the national debt! If we compare this with their statements before the election, we have to ask: Were they making fun of us, did they deceive us, or are they just completely incompetent?

But the economic dilettantism of Fiala’s government is not only betrayed by the debt they have accrued. It is also important, or even more so, how they want to solve the debt crisis.

Finance Minister Zbyněk Stanjura is desperately looking for a way to get some money into the state coffers. His management is unsustainable, and money is flying out of his hands. Any businessman, but also any normal-thinking citizen, would give him simple but very constructive advice:

Minister Stanjur, Zbyňka, start saving! Cancel everything we don’t need, reduce household spending (understand, the state), stop showing off to the world, and fire a third of the useless employees who are leeching on the bloated state.

Cancel 35 state offices, useless researchers, and institutions that only distribute subsidies. Look at how many billions you get away with every year by paying outrageous benefits to police officers, look at how ineffective purchases are made by the state or the regional healthcare or education sectors. Calculate how expensive one kilometer of a new highway is (not that you would build one, right?). Get rid of meaningless so-called investment incentives. Put order in the digitization of the state administration, which is nothing but a goldmine of politicians, officials and contractors, where tens of billions are lost every year.

This, and much more, we would advise Mr. Stanjura. Simply put, don’t sweat it and start saving. But no, Minister Stanjura, he will not save money. Small, even insignificant savings, such as the cancellation of the branches of the Financial Office and the post office, or the intention to cancel subsidies to large companies (after all, no one but large companies has subsidies). The essential thing is that he does not have the courage to implement actions that could save 100 billion crowns a year. He doesn’t want to bother civil servants and rich corporations or even the EU command, does he?

We must also mention the fact that Mr. Stanjura decided to tax large companies, banks, and energy companies as well. But they laughed at him. After all, they will not pay taxes on the profits that Fiala’s government so generously prepared for them. So, Mr. Stanjura has been sharp, and instead of the 60 billion he dreamed of, he will get less than 30, and even that is still uncertain.

And so, there we have it. Because Mr. Stanjura does not have the courage and desire to save, he must have the courage to take more money from us, citizens and small businessmen. And he has this courage. Property tax increases, an increase in levies for self-employed people (they say it won’t happen, but believe me it will), income tax increases, VAT increases.

And lest we forget, Mr. Stanjura can also save, but we, the citizens, have to do it for him – the cancellation of building savings contributions, reduction of pension values, shortening of maternity paid leave, we have already heard all of this from Mr. Stanjura. How Mr. Stanjura “saves” from our pockets instead of his is the same as if you wanted to lose weight, but asked someone else to run for you.

Sure, we citizens and businessmen should also participate in some kind of austerity program so that our country can run a reasonable economy and be able to have a stronger military, good roads, and a functioning health care system. But it is difficult for us, because the Babiš and Fiala governments have so clearly wasted our money. However, if the state, i.e., the government and the minister of finance, set an example, we would certainly be willing to join in with some reasonable management. But how are we supposed to be motivated when we have to save, pensioners will have their payments cut and mothers will have less maternity leave, while MPs will get an increase in their salaries, civil servants’ wages (already outrageously high) will rise, and at the end of each year we will find out what bonuses of hundreds of thousands have been received by civil servants because they are said to have performed exceptionally well?

We have a government that promised to be different from the previous one. I’m afraid they have succeeded. It is different, unfortunately, at least in the economic field, it’s even worse. How do I feel about it? Poorly. A sense of disappointment and ruin prevails.

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