Czech Republic on track to correct budget deficits

The European Commission has concluded that the Czech Republic, along with Cyprus, Malta, Poland and Slovakia, are on track for correcting their excessive deficits. In July, the European Council recommended they take effective action to control their budget deficits. The Economic and Monetary Affairs Commissioner Joaquin Almunia, said on Wednesday, he was pleased to see the recommendations taken seriously, adding that they are appropriate for periods of high growth such as those experienced by the EU states in question.

Taking into account the initial level of the deficit and the ongoing structural shift related to the convergence process, the Council recommended that the excessive deficit be corrected by 2008 in the Czech Republic.