Czech government approves joining EU fiscal pact
The center-left government has approved the Czech Republic’s accession to the EU fiscal pact, the CTK news agency reports citing the government’s state secretary for European Affairs Tomáš Prouza. The move is not expected to have immediate economic consequences and the country will be bound to abide by the pact’s budget restrictions only after it joins the euro zone. At present it is seen as a manifestation of the country’s pro-European course and commitment to deeper EU integration. Economists have welcomed the move saying accession to the fiscal pact would enhance budget discipline and prevent future Czech governments from raising debts excessively.