President Klaus has vetoed the government’s pension reform bill. The bill introduced a so-called “second pillar” to the pension system which would enable Czechs to send part of their compulsory pension insurance contributions to private accounts as of next year. The president is concerned that there is no consensus over the reform among experts, politicians and the broad public. He also cautioned against introducing such a reform in an uncertain economic climate. The opposition-controlled Senate vetoed the same bill earlier, but the veto was overturned by the lower house of parliament in early September. The bill will now go back to the lower house for another vote in which the governing coalition would have to find 101 votes to override the president’s veto.
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