European Union finance ministers endorse Czech budget recommendations

European Union finance ministers endorsed on Monday endorsed budget recommendations for the Czech Republic and five other new EU member states that broke the bloc's deficit cap last year. Under the terms of the European Union's "Stability and Growth Pact," governments cannot run a budget deficit greater than 3 per cent of GDP, nor can they have a debt ratio of more than 60 per cent of GDP. Thanks to taking on unusually high "one-off" loan guarantees, the Czech Republic last year posted a 12.9 per cent budget deficit as a percentage of GDP -- the largest of any EU country. This year it is likely to be 6 per cent.