EC tells Czechs to slash deficit in public finances

The European Commission has recommended that the Czech Republic's deficit in public finances in 2008 should not exceed three percent of the GDP. If that is met, the European Commission could terminate proceedings with the Czech Republic over its excessive deficit. Finance ministry experts say this is a realistic target. The Czech budget gap is expected to reach 4 percent this year but the government's reform plan recently approved by Parliament should bring next year's deficit down to 2.95 percent of the GDP.