Friday, 25 April 2014

Government parties fail to agree on EU's fiscal compact

1 February 2013

Prague, Jan 31 (CTK) - The working group of the Civic Democratic Party (ODS), TOP 09 and LIDEM today did not agree on TOP 09's demand that the Czech Republic should join the EU fiscal compact by the end of the year, LIDEM and TOP 09 representatives, Karolina Peake a Jaromir Drabek, told journalists.

As a result, along with other disputed questions, the leaders of the coalition parties will discuss the issue later, they added.

EU countries, except for Britain and the Czech Republic, signed the fiscal compact last March.

On Tuesday, TOP 09 said it would not sign the new planned coalition agreement with the ODS and the Liberal Democrats (LIDEM) unless the Czech Republic joins the European fiscal compact in 2013.

The fiscal compact reckons with states incorporating the rule that the structural budget be more or less balanced or surplus into their legislation, preferably into the constitution. The deficit of the structural budget may be up to 0.5 percent of GDP. The European Court of Justice will have the power to impose fines on those who violate this rule.

TOP 09 said previously the rejection of the fiscal pact makes Prague's position in the EU unclear and leads to its exclusion from the European mainstream.

Earlier today, the ODS rejected TOP 09's demand as a useless ultimatum.

The ODS board said the step may be pondered only after referendum on the euro and the financial constitution are introduced in the country.

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