EU slams Czech Republic over public finances

The European Union has criticised the Czech Republic over the state of its public finances. EU finance ministers called on Prague to tighten its budget policy in order to reduce the public finance deficit to below three percent - and as quickly as possible. This year the Czech Republic's budget deficit is set to reach 4 percent of gross domestic product, breaking a Czech government pledge to keep it below 3.3 percent. Tuesday's reprimand had been expected and is set to be followed by a similar admonishment later this year.

Meanwhile, Czech Finance Minister Miroslav Kalousek said the EU had given its backing to government plans to reform the Czech Republic's welfare and taxation systems.