2012 target for euro adoption, public finance gap set to rise

The government has approved a revised version of its convergence programme, including a target date for euro adoption of 2012. The document concedes the public finance gap will reach 4 percent of GDP this year, higher than the 3.3 percent envisaged in the original version. Finance Minister Miroslav Kalousek said the programme could expect justified criticism from the European Commission, but said if Prague could prove it was serious about reforms there would be no real threat of sanctions.