Czech finance minister warns of ballooning public deficits in EU

The Czech presidency of the European Union has urged member states to rein in their growing public deficit as soon as the economic crisis allows. Chairing a meeting of EU finance ministers devoted to crisis management, the Czech finance minister, Miroslav Kalousek, said that the coordinated fiscal stimulus now taking place must be followed by a coordinated effort to cut public deficits as soon as circumstances allow. The 27-member block agreed last December to pump 200 billion euros into their economies in the hope of minimizing the impact of the recession and public deficits, which are normally kept under 3 percent of GDP, are ballooning. The European Commission is expecting the combined EU shortfall to reach 4.4 percent of output in 2009. At least 12 member states are expected to go over limit this year.