Finance minister says outlook for euro adoption bleak

The Czech Republic will fail to meet the EU´s demand for cutting its state budget deficit below 3 percent of GDP by 2013, Finance Minister Eduard Janota said in Thursday’s edition of the daily Lidové noviny. He said the government would have to officially disclose the news to Brussels by the end of January, together with its convergence programme and exit strategy.

EU finance ministers warned the Czech Republic in early December that the country would have to cut its budget gap below 3 percent of GDP by 2013 if it is to be able to adopt the euro in the medium-term horizon. The Czech Republic’s 2009 deficit of 195 billion crowns, four times higher than expected, and its projected 2010 deficit of 163 billion, have thwarted the government’s plans.