Government passes measures to curb deficit

The Czech government outlined on Monday a series of cost-cutting measures to curb what looks set to be the biggest deficit in the country’s history. PM Jan Fischer told reporters that the cabinet will debate these bills at its next session on September 9. Mr Fischer said that if these proposals are not approved by the lower house of the Czech Parliament, the government will draft a 2010 budget with a deficit of 230 billion crowns, or nearly 13 billion US dollars.

While the prime minister said the caretaker government felt responsible for curbing the looming record deficit, leaders of the two strongest parties, Social Democrats and Civic Democrats, said earlier their parties would not support the planned measures in the lower house.