PRAGUE, July 4 (Reuters) - The Czech Social Democrats will fight the economic crisis by boosting infrastructure and social spending if they take power after an October parliamentary election, the party said on Saturday.
At a pre-election congress, the leftists set the stage for a showdown with their right of centre rivals, the Civic Democrats, whose government they toppled in March, halfway through the Czechs' European Union presidency.
In their platform for the Oct. 9 and 10 vote, the leftists said they would push for a stimulus worth 1 to 1.5 percent of gross domestic product with the aim of creating 100,000 jobs.
The party said it would pay for the higher spending by scrapping a flat personal income tax and tapping the profits of state-owned firms, including energy firm CEZ.
'The priority will be measures that keep people in work,' Social Democrat leader Jiri Paroubek said in a speech.
'We are aware that these actions will not solve the crisis, but they can soften the impact on Czech citizens.'
The export-dependent country of 10.5 million has suffered less than many EU states in the crisis, although its economy shrank by 3.4 percent in the first quarter and unemployment was 7.9 percent in May, from 5 percent a year earlier.
The Social Democrats have criticised rightist former Prime Minister Mirek Topolanek for neglecting poorer Czechs, while the Civic Democrats say the leftists' plans for higher spending are fiscally irresponsible.
The sitting caretaker government, which replaced Topolanek's cabinet after it fell to a Social Democrat-led no-confidence vote, has warned against any hikes in spending.
It expects the public sector deficit to triple this year to 4.5 percent of gross domestic product, well above the 3.0 percent required to join the euro zone, which the Czechs are expected to do in the middle of next decade at the earliest.
The government sees the deficit rising further to 5.1 percent of GDP in 2010 and staying high for several years to come due to continued weak growth and rising social costs.
The Social Democrats also proposed boosting support for the unemployed and families with children, as well as paying pensioners an extra '13th month' payment each year.
They also pledged to scrap doctors' visit fees introduced by Topolanek's cabinet to cut healthcare costs and reinstate higher sick payments it had cancelled to counter a work absenteeism rate that dwarfed the EU average.
The Social Democrats' standing in opinion polls has dropped sharply since Topolanek's fall. A poll at the end of June showed they had slid into second place behind the Civic Democrats with 30 percent support to 35 percent, a fall of eight percentage points.
(Reporting by Michael Winfrey; Editing by Sophie Hares) Keywords: CZECH ELECTION/SOCIALDEMOCRATS (michael.winfrey@reuters.com; +420 224 190 472; Reuters Messaging: michael.winfrey.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
At a pre-election congress, the leftists set the stage for a showdown with their right of centre rivals, the Civic Democrats, whose government they toppled in March, halfway through the Czechs' European Union presidency.
In their platform for the Oct. 9 and 10 vote, the leftists said they would push for a stimulus worth 1 to 1.5 percent of gross domestic product with the aim of creating 100,000 jobs.
The party said it would pay for the higher spending by scrapping a flat personal income tax and tapping the profits of state-owned firms, including energy firm CEZ.
'The priority will be measures that keep people in work,' Social Democrat leader Jiri Paroubek said in a speech.
'We are aware that these actions will not solve the crisis, but they can soften the impact on Czech citizens.'
The export-dependent country of 10.5 million has suffered less than many EU states in the crisis, although its economy shrank by 3.4 percent in the first quarter and unemployment was 7.9 percent in May, from 5 percent a year earlier.
The Social Democrats have criticised rightist former Prime Minister Mirek Topolanek for neglecting poorer Czechs, while the Civic Democrats say the leftists' plans for higher spending are fiscally irresponsible.
The sitting caretaker government, which replaced Topolanek's cabinet after it fell to a Social Democrat-led no-confidence vote, has warned against any hikes in spending.
It expects the public sector deficit to triple this year to 4.5 percent of gross domestic product, well above the 3.0 percent required to join the euro zone, which the Czechs are expected to do in the middle of next decade at the earliest.
The government sees the deficit rising further to 5.1 percent of GDP in 2010 and staying high for several years to come due to continued weak growth and rising social costs.
The Social Democrats also proposed boosting support for the unemployed and families with children, as well as paying pensioners an extra '13th month' payment each year.
They also pledged to scrap doctors' visit fees introduced by Topolanek's cabinet to cut healthcare costs and reinstate higher sick payments it had cancelled to counter a work absenteeism rate that dwarfed the EU average.
The Social Democrats' standing in opinion polls has dropped sharply since Topolanek's fall. A poll at the end of June showed they had slid into second place behind the Civic Democrats with 30 percent support to 35 percent, a fall of eight percentage points.
(Reporting by Michael Winfrey; Editing by Sophie Hares) Keywords: CZECH ELECTION/SOCIALDEMOCRATS (michael.winfrey@reuters.com; +420 224 190 472; Reuters Messaging: michael.winfrey.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.