Fischer expects EC investigation into Czech budget deficit

Prime Minister Jan Fischer has said the Czech Republic will likely be investigated in the coming year by the European Commission on account of its high budget deficit. Speaking at an economic forum in Prague on Wednesday, Mr Fischer stated that while the investigation is a standard procedure, any further deepening of the deficit could jeopardise the transfer of money from EU funds, and the recommendations arising from such investigations can bring what he called “painful” measures. EU finance ministers agreed at the beginning of December that the Czech Republic would have to decrease its budget deficit to less than 3% of GDP by 2013 if it is to adopt the Euro in the foreseeable future. Alterations made by left-wing parties to the recently-passed 2010 budget have pushed the deficit for that year past what the current finance ministry considers acceptable.