Regions, Our Ukraine Agree to Postpone Budget Vote.

The Regions party yesterday backed off slightly from its drive to push through an aggressive resolution setting the parameters for the 2007 budget, which included a call to restore tax privileges to special economic zones. The resolution drew sharp criticism from the acting finance minister, Viktor Pinzenyk, and from Our Ukraine MPs, who argued that it would create a huge deficit and mainly benefit the Regions party’s industrial backers. The resolution was approved but on first reading only, and 33 Our Ukraine deputies voted in favor in hopes that a compromise could be worked out. As opposed to an earlier version of the pararameters discussed Friday by the budget committee, the version voted on by parliament did not call for import duties to be restored to early 2005 levels. Tom Warner: Regions won’t give up its drive to restore the tax discounts. Even if Yushchenko and Yanukovich agree to cooperate, they will continue fighting over this issue until the final 2007 budget is adopted.