FinMin: more budget cuts might be needed in the wake of EU debt crisis

Additional budget cuts of up to 15 billion crowns, or more than 870 million US dollars, might be needed to balance the effects of the European debt crisis on the Czech economy, Finance Minister told the daily Lidové noviny on Saturday. Mr Kalousek said that given the fragile post-crisis growth, there was a considerable risk of the economy falling back into recession. The Czech government this year implemented austerity measures amounting to 35 billion crowns to reach a budget deficit of around 105 billion crowns, or 3.5 percent of the country’s GDP.

Author: Jan Richter