Finance ministry says public spending gap to grow

Due to the economic crisis, the Czech Republic's public finance deficit is expected to grow significantly above the level of 3 percent of GDP necessary to adopt the euro in the coming years, according to a fiscal outlook published by the Czech Finance Ministry on Friday. This year’s deficit is expected to reach 4.5 percent of GDP, next year’s is projected at 5.1 percent and the deficit in 2011 is expected to reach 4.9 percent of GDP. The Finance Ministry notes in this connection that the EU will probably soon start excessive debt procedure with the Czech Republic. This procedure was concluded with the Czech Republic only last year in June thanks to the country’s good results in 2007. The public finance gap last year reached 1.5 percent of GDP. Due to the Czech Republic’s export-oriented economy, the global crisis has significantly changed the country’s economic potential and fiscal goals.