...

Czech parliament approves pro-euro 2009 budget

Business Materials 10 December 2008 21:35 (UTC +04:00)

The Czech parliament's lower house Wednesday approved a 2009 budget with a deficit of 1.6 per cent of gross domestic product (GDP), well below the 3-per-cent limit required for adopting the euro, dpa reported.

However, the Czech Republic is in no rush to switch to Europe's common currency, as Prime Minister Mirek Topolanek wants to fix country's public finances first.

Topolanek's centre-right government abandoned a 2010 euro-adoption target. That contrasts with Slovakia - which used to make up Czechoslovakia with the Czech Republic - which will enter the 15-member eurozone in January.

The budget outlines a deficit of 38.1 billion koruny (1.9 billion dollars), the lowest in 10 years and down from a planned gap of 71.3 billion koruny (3.6 billion dollars) this year.

However, the cooling Czech economy is expected to reduce revenues next year. The government is likely to redraft the budget early next year as it forecasts rely upon GDP growth of 4.8 per cent, which is seen as unrealistic by analysts.

Latest

Latest