Government seeks political deal on budget deficit

The Czech caretaker government will negotiate with political parties on Tuesday to try and seal a deal on a budget for 2010. The government on Monday unanimously backed a cost-saving and tax-raising budget proposal for 2010 tabled by Finance Minister Eduard Janota. Mr Janota’s package is seeking to limit next year’s budget deficit to 155.3 billion crowns instead of the record 230-billion deficit the country is now heading for. Prime Minister Fischer has made acceptance of a budget with the deficit capped at 170 billion crowns a condition of his staying on in office after the abandonment of autumn elections. The package is expected to be presented to the lower house of parliament on Thursday.