New moves to raise revenues and cut spending by the Czech government have brought an immediate backlash with the main opposition party, the left-of-center Social Democrats (ČSSD), calling for a vote of no confidence in the fragile center-right coalition. The government already looks divided over the mooted austerity measures and could get more shaky as they are firmed up, but the prospect of election anihilation should encourage some voting discipline. 

Confidence in the Czech economy has risen f0r the second  month in a row, largely thanks to industrial and service companies, the latest monthly index compiled by the Czech Statistical Office suggests. Consumer confidence, however,  fell back even though unemployment fears appear to be easing.

Moody's Investors Service has placed on review for downgrade the debt and deposit ratings of 21 bank subsidiaries located in Central and Eastern Europe (CEE) and Commonwealth of Independent States (CIS) — including several Czech banks — “reflecting concerns regarding weakening capacity and/or willingness of parent banks to provide support to these subsidiaries.”

As expected, Czech  unemployment climbed in January to reach 534,089, or 9.1 percent of the active workforce from December's 8.6 percent. The ratio of job seekers to every vacancy widened to an average 1:15.5 with little improvement in the overall jobs picture expected soon.