2010 Euro adoption threatened

The deputy finance minister Eduard Janota says that the Czech Republic's planned adoption of the Euro in 2010 is in danger. Mr. Janota made the statement during a televised interview on Sunday. He says that the Euro's adoption is threatened because the Czech Republic must fulfill all the Maastricht criteria by the middle of 2007, and that includes criteria regarding the proposed state budget deficit. EU standards set deficit rates at a maximum of 3.3% of GDP, while the Czech Republic's proposed budget for 2007 stands at 88 billion crowns, including a deficit of 3.8% GDP.

Meanwhile, outgoing prime minister, Jiri Paroubek, has reacted to the news by saying that it is better to delay the introduction of the Euro than to cut-back on social programs.