29th April 2013

Government: Convergence Program approved

At its last session on 24 April, the Government approved the Convergence Program. The document specifies basic aggregate fiscal data and forthcoming measures in the medium-term impacts on the state budget. The Government emphasizes that the Czech Republic is willing to fulfill any requirements of the Treaty on Stability, Coordination, and Governance in the Economic and Monetary Union, although the Czech Republic is not a member of that Union. The Ministry of Finance announced in the Convergence Program that the debt of public sector may rise up to 48.5 per cent of GDP with the government sector balance -2.8 per cent of GDP in 2013. The Government emphasizes its determination to keep sustainable budget and keep reducing the public sector debt in the Convergence Program.

The Ministry of Finance welcomes any further comments on the Convergence Program at its web sites.

For further information, click here (Ministry’s web sites).

The Government also announced future budget prospects in the medium-range. During the forthcoming three years (2013-2016), the Government intends to keep the state budget debt slightly below 3 per cent of GDP. The Government also tries to involve more pro-growth measures. The PM Petr Nečas also stresses that the economic drop has occured by psychological rather than economic reason.

For further information, click here (press release).

Members of the American Chamber of Commerce in the Czech Republic