A member of the governing coalition’s vote against a government-sponsored tax bill in Parliament on Friday (the bill was defeated by one vote) has resulted in a crisis within the Cabinet, where a shuffle is expected, but we expect the crisis to quickly pass. The Czech koruna already reacted negatively to the development, though (it yesterday closed at CZK/USD 31.4, down 2.23%); equities remain unaffected.
Jiri Soustruznik