20th June 2014

EU ended procedure with the Czech Republic for excessive deficit

The EU Council agreed on its meeting on 20th June in format of ministers of finance on ending the procedure of excessive deficit of public finance that started in 2009 at the time when the Czech Republic accounted for the deficit of 5.8 % of GDP. This decision was based on European Commission evaluation that deemed Czech fiscal measures adequate. EC in its evaluation added that it considers economic recovery and present focus on investments as very important measure. Minister of Finance Andrej Babiš added that the Czech Republic would keep the deficit under 3 % even though it would rise to 1.8 % in the year 2014 and to 2.8 % the next year. The EU Council ruling can be perceived as a sign of economic stability and could prove helpful for its financial market standing. The procedure was ended also with Belgium, Denmark, the Netherlands, Austria and Slovakia leaving 11 countries still undergoing it.

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Members of the American Chamber of Commerce in the Czech Republic