Alternative History
Václav Klaus' First Cabinet
Flag of the Czech Republic
36th cabinet of Czechoslovakia
Václav Klaus 1990
Date formed 15 July 1983
Date dissolved 8 July 1987
People and organisations
President Jiří Hájek (1983–1987)
Alexander Dubček (1987)
Prime Minister Václav Klaus
Deputy head of government Miroslav Macek
Antonín Baudyš (1983–1984)
Michal Kováč (1983–1984)
Vladimír Mečiar (1984–1986)
Karel Schwarzenberg (1984–1987)
Ján Čarnogurský (1986–1987)
No. of ministers 18
Member party RS (9 ministers)
ČSL (3 ministers)
SĽS (3 ministers)
LDS (3 ministers)
Status in legislature Majority government
153 / 300
Opposition parties
147 / 300
Opposition leader Jiří Horák (1983–1986)
Jiří Dienstbier (1986–1987)
History
Election(s) 1983 federal election
Legislature term(s) 1983–1987
Predecessor Horák
Successor Klaus II

Václav Klaus' first cabinet assumed office on 15 July 1983 following the 1983 federal election. It was a majority government comprising the Republican Party, the Czechoslovak People's Party, the Slovak People's Party and the Liberal Democratic Party.

Parties involved in the cabinet[]

The government was composed by the following parties:

Party Ideology Leader
Republican Party of Czechoslovakia logo 1980 (WFAC) Republican Party (RS) Conservatism Václav Klaus
Czechoslovak People's Party historical logo Czechoslovak People's Party (ČSL) Christian democracy Antonín Baudyš
Slovak Cross Emblem Slovak People's Party (SĽS) Christian democracy Michal Kováč
Czechoslovak Liberal Democratic Party logo 1948 small (WFAC) Liberal Democratic Party (LDS) Liberalism Miroslav Macek

Government formation[]

Following convention, incumbent Prime Minister Horák tendered his government's resignation to President Rechcígl on 19 June 1983. Horák's cabinet would remain in office as a caretaker government until a new government assumed office.

As a result of the election, the RS, ČSL/SĽS and the LDS enjoyed a sustainable majority in the Federal Assembly, nor with all the mandates of the center parties. Negotiations began on 19 June, and on 12 July Klaus announced that the Republicans had come to an agreement with the ČSL/SĽS and LDS. The four parties formed a majority government with Klaus as prime minister, which was sworn in on 15 July. The cabinet passed its investiture vote on 22 July.

Investiture votes[]

Investiture
Václav Klaus (RS)
Ballot → 22 July 1983
Required majority → 151 out of 300 YesY
Yes
RS (102)
ČSL (20)
SD (19)
LDS (17)
SĽS (14)
SDVP (4)
SMK-MKP (4)
180 / 300
No
ČSSD (79)
KSČ (16)
SZ (13)
ČSNS (11)
119 / 300
Abstentions
0 / 300
Absentees
ČSSD (1)
1 / 300

Policies[]

Economic policies and privatisation[]

A privatization voucher used in Czechoslovakia. Each adult could acquire a share in selected companies for a fee of CSK 1,000. Presidents Hajek and Dubček heavily criticized Klaus' policy of voucher privatization of previously state-owned enterprises.

A privatization voucher used in Czechoslovakia. Each adult could acquire a share in selected companies for a fee of CSK 1,000. Presidents Hajek and Dubček heavily criticized Klaus' policy of voucher privatization of previously state-owned enterprises.

Within its broad policy, the new government had several main objectives: to reduce the federal deficit by cutting expenditures as well as taxes, improve the balance of payments, reduce unemployment, reduce public deficits and start paying off foreign debt, to reduce government restrictions and regulations, and to improve the flexibility and performance of the labor market.

The government initiated a recovery policy in which one of the first steps was a series of public savings: The federal government's block grant to the municipalities was reduced, and cuts in unemployment benefits, government stipends were carried out. In addition, the government temporarily froze wages in the public sector. Klaus government also introduced a fixed exchange rate policy between the Czechoslovak Koruna (CSK) and the German Mark (DM), which was to instill confidence in the Czechoslovak economy in the international financial markets. In total, the government achieved in saving CSK 13 billion on the 1984 federal budget, and by July 1984 there were positive developments in all economic indicators except unemployment.

Most of the government's savings proposals had passed in the Federal Assembly with the support of the Free Democrats, while the ČSSD, ČSNS, the Communists and the trade union movement, in particular, had protested loudly against what they thought were unsocial measures. However, despite major strikes and protests at Wenceslas Square and Letná Park in Prague, Hviezdoslav Square in Bratislava, and around the country, the government in general had the support of the population.

The government also carried through a series of privatization measures, selling almost CSK 70 billion in shares of such diverse state-owned institutions as ČEZ, Škoda Auto, Czechoslovak Airlines (ČSA), the Třinec (TŽ), Vítkovice Steel Works (VŽ) and Kosice (KŽ) Iron and Steel Works. Through all these steps, the state role in the Czechoslovak economy declined from 52 percent to 46 percent of GDP between 1983 and 1991.

Large-scale privatizations were carried out in May 1984 and September 1988, eventually selling almost CSK 232 billion. The privatization was carried out through projects by direct sale, public tender, auctions, free transfers, sales on the stock market or through the voucher privatisation (Czech: Kupónová privatizace, Slovak: Kupónová privatizácia), where each adult Czechoslovak could acquire a share in selected companies for a fee of CSK 1,000. Two waves of voucher privatizations took place, the first in 1984 and the second in 1986.

Although the policies of the Klaus government changed the mood of the Czechoslovak economy and reinstalled a measure of confidence, progress came unevenly and haltingly. During most of the 1980s, the figures on growth and inflation improved but slowly, and the figures on unemployment barely moved at all. There was little job growth until the end of the decade. When the statistics did change, however, even modestly, it was at least in the right direction.

Reforms[]

The Klaus cabinet also embarked on a series of reforms that to many seemed like reversals of long-standing social democratic reforms, and to others changes that reflected new and emerging economic realities. In 1984, the government ended the government intervention in credit markets, which in turn led to freer access to credit by both consumers and businesses (Act No. 27/1984). On 30 October 1985 the Klaus government dissolved the governmental monopoly on television and radio broadcasting through the Law on the Operation of Radio and Television Broadcasting (Act No. 468/1985), including allowing the introduction of commercially funded content. The government also reduced restrictions on ownership and sale of real estate (Act. No. 288/1986) as well as reduced restrictions on retail trade, especially with respect to opening hours (Act No. 132/1983).

Foreign policy[]

The Klaus government's foreign policy was largely consistent with those of prior ČSSD cabinets, but Klaus was vocal in his criticism of the Soviet Union and was steadfast ally of the United States and the United Kingdom and supported Reagan's more aggressive policies in order to weaken the Soviet Union. His vocal support for the United States and the United Kingdom faced criticism from the peace movement and the left, claiming this was in violation of the terms of the Declaration of Neutrality of 4 April 1951. Klaus personally enjoyed close relationships with both Margaret Thatcher and Ronald Reagan.

Foreign Minister Karel Schwarzenberg also made a significant contribution to the improvement of Czech-German and Czech-Austrian relations. His nomination, however, caused some controversy, with Miroslav Sládek of the far-right populist party Free Democrats stating that he had strong links to Austria and would not be able to defend national interests.

Controversies[]

Minister of Defence Antonín Baudyš was forced to resign on 21 September 1984 following a series of "various, ill-considered or controversial steps and public statements." He had repeatedly issued statements and comments to the press without having consulted with the cabinet and the party. In October 1983 either he or his bodyguards, Capt. Jan Pasker, fired a pistol inside the plane and subsequently covered the floor in which the delegation traveled to Sweden. On that same trip, he was by the media for an incident by General Oldřich Bárta, who was caught in a Swedish department store stealing fishing hooks. On 17 August 1984 a ShKH DANA vz. 77 artillery system overshot the military training grounds in the Doupov Mountains and destroyed three civilian houses.

Cabinet[]

Portfolio Name Party Assumed office Left office
Prime Minister Václav Klaus RS 15 July 1983 8 July 1987
Deputy Prime Minister Antonín Baudyš ČSL 15 July 1983 21 September 1984
Karel Schwarzenberg 21 September 1984 8 July 1987
Deputy Prime Minister Michal Kováč SĽS 15 July 1983 16 October 1984
Vladimír Mečiar 16 October 1984 2 July 1986
Ján Čarnogurský 2 July 1986 8 July 1987
Deputy Prime Minister Miroslav Macek LDS 15 July 1983 8 July 1987
Foreign Minister Karel Schwarzenberg ČSL 15 July 1983 8 July 1987
Federal Minister of Defence Antonín Baudyš ČSL 15 July 1983 21 September 1984
Vilém Holáň ČSL 21 September 1984 8 July 1987
Federal Minister of Finance Karel Špaček RS 15 July 1983 8 July 1987
Federal Minister of Economic Affairs Jan Klak RS 15 July 1983 8 July 1987
Federal Minister of Competition and Privatization Ivan Kočárník RS 15 July 1983 8 July 1987
Federal Minister of Justice Milan Čič SĽS 15 July 1983 14 January 1985
Katarína Tóthová SĽS 14 January 1985 8 July 1987
Federal Minister of the Interior Ján Langoš RS 15 July 1983 16 October 1984
Vladimír Mečiar SĽS 16 October 1984 2 July 1986
Jan Ruml RS 2 July 1986 8 July 1987
Federal Minister of Industry Karel Dyba LDS 15 July 1983 8 July 1987
Federal Minister of Trade Josef Bejček LDS 15 July 1983 8 July 1987
Federal Minister of Labour Jan Stráský RS 15 July 1983 22 April 1985
Oľga Keltošová RS 22 April 1985 8 July 1987
Federal Minister of Social Affairs Michal Kováč SĽS 15 July 1983 16 October 1984
Milan Horálek RS 16 October 1984 2 July 1986
Ladislav Pittner SĽS 2 July 1986 8 July 1987
Federal Minister of Education and Research Petr Vopěnka LDS 15 July 1983 8 July 1987
Federal Minister for Family, Youth and Sports Marie Formanová ČSL 15 July 1983 8 July 1987
Federal Minister of Health Ján Čarnogurský SĽS 15 July 1983 8 July 1987
Federal Minister of Transportation and Communication Jiří Nezval RS 15 July 1983 22 April 1985
Jan Stráský RS 22 April 1985 8 July 1987
Federal Minister of Agriculture and Food Ivan Dejmal RS 15 July 1983 8 July 1987
Federal Minister of Energy and Environment Bedřich Moldan RS 15 July 1983 8 July 1987

See also[]