UPDATE 1-Czech FinMin-Plan makes 2012 realistic euro date

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PRAGUE, March 12 (Reuters) - The annual update of the Czech Republic's euro convergence programme makes it "realistic" for the country to adopt the single currency in 2012, Finance Minister Miroslav Kalousek said on Monday

"The convergence plan has been done in such a way as to make 2012 a realistic date for euro adoption even though this is not specifically mentioned (in the plan)," Kalousek told a news conference after a cabinet meeting to discuss the plan.

A worsening budget deficit forced the government late last year to abandon the previous entry target date of 2010 and markets are eager to see a new date set.

Ministers in the current government -- which took power early this year -- have mulled 2012-2013 as possible dates.

Kalousek said he expects the EU will criticise the Czechs for failing to meet the limits on public budgets in the convergence programme, but that he hopes the reform plans of the current cabinet will reverse the trend and allow the country to avoid any sanctions.

The convergence programme had set a public deficit ceiling of 3.3 percent of expected gross domestic product this year, but the government now expects the deficit to be 4.0 percent of GDP.

Private sector economists and central bank policymakers alike say a wide fiscal shortfall is the key impediment to both sustainable growth and timely adoption of the euro currency.