European Commission raises doubts about Czech public finances

The European Commission questioned on Wednesday the long-term sustainability of Czech public finances. In an evaluation of the Czech Republic’s convergence programme, the commission also criticized the lack of measures to lower the state budget deficit below 3 percent of the gross domestic product in three years’ time, which is a condition for the adoption of the euro. The commission recommended the Czech government to outline a budget strategy for 2011 and 2012 with concrete measures to lower the deficit and to come up with reforms to ensure that Czech public finances are sustainable in the long run.

Author: Jan Richter