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Economy / Czech Republic

The Czech Republic

September 2011 | Risk Summary

The Czech coalition government has failed to win the support of trade unions for the 2012 draft state budget after meeting September 20. The head of Czech Moravian Confederation of Trade Unions (CMKOS) Jaroslav Zavadil stated that the 'only progress made at the meeting yesterday was that the government admitted that the growth of Czech economy may be lower than the expected 2.5 percent of GDP in 2012'. While the Czech Republic has thus far managed to avoid more belligerent union activity against austerity measures, the prospect of a second year of austerity measures could prove the trigger point for more vociferous union protests. We expect 2012 to be another challenging year for the fractious coalition.

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