Higher Budget Deficit Could Delay Euro Adoption

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12 September 2006, 11:35 - Politics
New Czech Finance Ministry Vlastimil Tlusty said in Prague on Monday the next year budget deficit will be probably much higher than it was previously expected. This could lead to a delay in adopting the common European currency, which has been preliminary set to 2010.

He said the deficit could reach 4.6 % of GDP. So called Mastricht criteria that each country must fulfill in order to be accepted to eurozone, allow maximal 3 % of GBP.

»To discuss the date for euro adoption at this moment when necessary reforms have not even been launched and public finances are not under control... is absolutely premature,« Tlusty told a news conference. He said his government would not have enough time to manage all necessary amendments to state budget.

The government must present its budget draft to parliament by 30 September, which comes some days ahead of the confidence vote.