Klaus state budget cuts will affect economy by tenths of a percent
President Václav Klaus says that next year’s state budget cuts will affect the Czech economy by a few tenths of a percent. Speaking on TV Prima on Sunday afternoon, Mr Klaus said that the cuts were perhaps the smallest in Europe and may have to be more extensive in the future. Demand for Czech goods abroad, he said, would have a much greater impact on economic growth than the restrictions on state expenditures. Last week, the government saw its budget for 2011 through the lower house of Parliament. Mr Klaus says the 135 billion crown it calls for - more than 20 billion less than this year – is still low enough for the country to grow out of economically, if no additional debt is added.