09-12-2025, 09:26 PM
![[Image: wiG0rsV.jpeg]](https://i.imgur.com/wiG0rsV.jpeg)
Tsargrad - Everyone knew when it started that it would not be a happy marriage. But that the coalition between the SSD and KDU would already show cracks within the first year of taking office is something that even the harshest critics of this government would not have believed. In a stunning development, the Skupština voted to reject the government its planned tax reforms by a vote of 221 in favor and 239 against. Despite the overwhelming majority of the Third Lazarescu government in the lower house, a estimated 90 respresentatives from the SSD voted against the reforms, resulting in them being rejected.
The tax reforms were agreed upon in the coalition agreement fostered late last year. In it, the coalition promised to cut taxes for the middle class and freeze a planned tax increase on incomes above 200.000 DTE. The reform also lowered the fossil tax from 10% currently to 3% and would completely remove the 2% income tax levied on those with a income of less then 10.000 DTE a year, basically granting them a exemption from the income tax. The reforms were presented as a major win by the KDU, with newly appointed KDU Treasurer Zvonko Stojčević working for the past few months to present the reform to the lower house.
But from the beginning a large group of SSD lawmakers oppossed the reforms, primarily for lowering the fossil tax and the freeze of tax increases on the wealthy. Additionally, Prime Minister Lazarescu seemed lukewarm to the idea himself. Despite being bound to the coalition agreement, he only defended the reforms when explicitly pushed on it, even then refusing to linger on the subject. Behind the scenes, the Prime Minister was criticized by his KDU partners for not lobbying his own party to vote for the bill, instead leaving the whipping of votes to his Assembly majority leader Renato Hrnjkaš. Hrnjkaš himself only talked with his own caucus, the moderates, while neglecting the building of support with the rebelious factions within the SSD.
The result was a rejection of the tax reforms, with the entire oppossition except the nationals voting against, with Savez! leader Bozo Sedlar believing the reforms not going far enough, while RKP leader Ela Marinović calling out the SSD for "cooperating in the proposition that will make the rich only richer." Imperial Treasurer and Deputy Prime Minister Zvonko Stojčević responded harshly on the outcome of the vote.
Those close to the cabinet report on several closed door meetings between the PM and Treasurer, with the potential outcome being a trimmed down version of the original tax reform. Even so, the rejection of these reforms sparks debate on the outcome for other agreements within the coalition agreement. Stojčević himself hinted at the potential rejection of the renewal for the Social Security 2.0 UBI scheme, with the SSD and KDU agreeing on extending the program but with the Treasurer having the ability to block such a extension. The unhappy marriage seems to break down even faster then some might have anticipated.
The tax reforms were agreed upon in the coalition agreement fostered late last year. In it, the coalition promised to cut taxes for the middle class and freeze a planned tax increase on incomes above 200.000 DTE. The reform also lowered the fossil tax from 10% currently to 3% and would completely remove the 2% income tax levied on those with a income of less then 10.000 DTE a year, basically granting them a exemption from the income tax. The reforms were presented as a major win by the KDU, with newly appointed KDU Treasurer Zvonko Stojčević working for the past few months to present the reform to the lower house.
But from the beginning a large group of SSD lawmakers oppossed the reforms, primarily for lowering the fossil tax and the freeze of tax increases on the wealthy. Additionally, Prime Minister Lazarescu seemed lukewarm to the idea himself. Despite being bound to the coalition agreement, he only defended the reforms when explicitly pushed on it, even then refusing to linger on the subject. Behind the scenes, the Prime Minister was criticized by his KDU partners for not lobbying his own party to vote for the bill, instead leaving the whipping of votes to his Assembly majority leader Renato Hrnjkaš. Hrnjkaš himself only talked with his own caucus, the moderates, while neglecting the building of support with the rebelious factions within the SSD.
The result was a rejection of the tax reforms, with the entire oppossition except the nationals voting against, with Savez! leader Bozo Sedlar believing the reforms not going far enough, while RKP leader Ela Marinović calling out the SSD for "cooperating in the proposition that will make the rich only richer." Imperial Treasurer and Deputy Prime Minister Zvonko Stojčević responded harshly on the outcome of the vote.
Quote:If our coalition partners are not serious about respecting the deal that we have with them, then they should not be suprised if we do the same. While i have no doubt that the Prime Minister has good intentions, as i have seen during cabinet meetings, he needs to put a spotlight on these intentions and act on them if he seeks to keep this coalition intact. I will be in discussion with the Prime Minister on what steps we need to take to move forward
Those close to the cabinet report on several closed door meetings between the PM and Treasurer, with the potential outcome being a trimmed down version of the original tax reform. Even so, the rejection of these reforms sparks debate on the outcome for other agreements within the coalition agreement. Stojčević himself hinted at the potential rejection of the renewal for the Social Security 2.0 UBI scheme, with the SSD and KDU agreeing on extending the program but with the Treasurer having the ability to block such a extension. The unhappy marriage seems to break down even faster then some might have anticipated.