European Commission: Czechs must cut budget expenditures
The European Commission on Wednesday urged the Czech Republic to avoid excessive budget expenditures in the coming years. The commission also set down the year 2013 as a benchmark for the Czech Republic to lower its budget deficit to three percent of the gross domestic product. The European Commission warned that if Prague fails to do so, it might face sanctions.
The Czech Finance Minister, Eduard Janota, said that the recommendation was an unambiguous message to Czech politicians to take fiscal issues seriously. This year, the state budget deficit is expected to reach some 163 billion crowns, which is about 5.3 percent of the country’s GDP.