Final Word from Friday, June 29, 2007
The great summertime tax-break lottery is only one side of the reform battle. Also important are the protests against cuts on the spending side. Culture Minister Václav Jehlička said he'd resign if he didn't get more money; Education Minister Dana Kuchtová complained about a budget cut and won the backing of 65,000 teachers; and Defense Minister Vlasta Parkanová said she won't allow the army to be reduced to a parade brigade. Of the three, her arguments are the most dubious. Defense spending will rise next year, she admits, but it will fall to an all-time low as a percentage of GDP. But with double-digit growth in government spending pushing up GDP so much, what's the logic in making sure defense outlays keep pace (aside from the 2% Nato commitment)? The more Parkanová screams and sings, the more she raises questions about why her Kč 54bn pile of cash is so tall.[Czech Republic North Atlantic Treaty Organization KDU-ČSL Greens Party gross domestic product]