Czech President Petr Pavel unveiled a government package of austerity measures on Wednesday, a spokesman said, prompting trade unions to promise a day of nationwide protest, DPA and Agerpres reported.

The legislation, approved by both houses of parliament, aims to cut spending by 150 billion crowns (about 6 billion euros) over the next two years.

Spending and subsidies should be cut, while taxes on alcohol, cigarettes, mineral water and property should gradually rise.

This set of measures involves an increase in the income tax rate from 19% to 21% at the beginning of the year.

Since March, the annual sticker for cars on the highway will be more expensive.

The trade unions of this EU member state announced Monday a day of national protests. Actions to stop work for one hour at hundreds of industrial enterprises are also planned.

Justifying his decision to ratify the law submitted by the coalition government of Prime Minister Petr Fiala, the head of state stated that the current level of debt cannot be maintained.