Draft budget moves forward without trade union support

The draft budget for 2011 will be presented to the government session tomorrow, 6 October, without receiving the support of trade unions, which oppose the proposed budget and the related government austerity measures.

The other party in tripartite talks, employers, agreed with the draft overall, but also had certain reservations. “Businesses do not welcome some of the measures, but in general we accept the draft budget, as it applies the principal that if we want to be better off in future, cost cutting is essential” said head of the National Association of Employers, Marian Jusko.

The employers would have preferred if the government increased VAT by more than 1%, while the 1% hike was one of the reasons why the trade unions were against the budget, as they claim it will increase inflation and prices. The trade unions held the first of a series of protests last week, and there is even speculation about calls for strikes.

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