EC begins investigation of deficits in excess…

The European Commission has begun an investigation into the budget deficit in the Czech Republic and eight other EU states whose deficits have breeched the stipulated boundary of 3% of GDP. The Finance Ministry on Wednesday said the investigation was ‘nothing surprising,’ and has already proposed measures expected to reduce the deficit by roughly 2% of GDP. Originally anticipating a budget deficit of 3.9% for this year, the ministry is in fact faced with 5.5%, which threatens to climb to more than 7% for 2010 should Parliament fail to pass its budget proposal for next year. The Czech Republic could face fines if its public finances are not rectified.