Necas expected to win todays confidence vote

Czech Prime Minister Necas is probably to win todays confidence vote tied to an unpopular tax increase as rebels give up. The Czech center-right cabinet will therefore most probably survive. The victory will save Necas for now but given his weak position in parliament, the government will struggle to push through legislation and will remain vulnerable. The two VAT rates will be raised next year to 15% and 21%, according to an agreement reached yesterday between the two factions within ODS. A 7% solidarity tax will also be imposed on individuals earning more than 100,000 CZK per month. / The yield on five-year koruna bonds fell to a record-low 0.736 % yesterday, according to generic data compiled by Bloomberg