National debt: The Czech Republic wants to loosen debt policy
The country has so far had one of the best credit ratings in Central and Eastern Europe. Economists are warning, however, that lax debt policy is difficult to reverse.
The Czech parliament is set to loosen national fiscal rules, paving the way for higher state deficits. The move, a key election promise from Prime Minister Andrej Babis, has the support of the three-party coalition government, which has enough votes to override a veto from President Petr Pavel. The government plans to increase the deficit to up to 400 billion Czech koruna by 2027, citing the country's relatively low debt-to-GDP ratio of around 46%. The new rules are expected to allow for investments in infrastructure, healthcare, and education.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
