Czechs affirm tax increase, Premier Petr Necas with vote

— Czech Premier Petr Necas on Wednesday won a confidence vote tied to an unpopular tax increase after suppressing a revolt among his lawmakers that weakened the government as it pursues budget cuts.

The lower house approved a bill containing about $1.1 billion of measures to reduce the budget deficit to less than the European Union limitnext year. Necas mustered the backing of 101 lawmakers in Wednesday’s vote that was tied to a confidence motion.

A group of ruling lawmakers, who had opposed some tax increases in the plan, stepped aside to allow for the approval of the bill in the 200-seat chamber.

With the country facing the prospects of the longest recession on record, Necas is trying to avoid the fate of European leaders who wereousted as they pushed austerity measures that stunted economies from Romania to Spain.

The premier, who credits previous cuts with helping to reduce borrowing costs, is likely to meet more difficulties with his austerity measures as the desertion of one lawmaker pushed the government into a minority.

“Horse trading is to become a feature of any important vote in parliament,” OtiliaSimkova, an analyst at Eurasia Group in London who had predicted the government to survive the confidence vote, said in an e-mail.

“This bodes poorly for government’s ability to implement any key legislation in the future as well as its overall stability.”

Front Section, Pages 7 on 11/08/2012

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