UPDATE 1-Czech euro target depends on fiscal reform-report

(Adds quotes, background)

PRAGUE, Oct 25 (Reuters) - The Czech Republic should set a new euro zone entry target only after preparing a plan to reform the deficit-ridden public finances, the daily Hospodarske Noviny reported on Wednesday, quoting an analysis prepared by the Finance Ministry and central bank.

Although no one has officially said so, the country has effectively abandoned its 2010 euro entry target due to deepening budget deficits which will prevent meeting the Maastricht criteria for adopting the single currency.

"Until a new strategy of consolidating public finances is prepared, it is premature to consider a new date," the daily quoted the analysis as saying.

That is in line with comments by top government officials including Finance Minister Vlastimil Tlusty, who have said budget reforms must precede a discussion on the timing of euro zone entry.

The daily said the central bank may also have to cut its inflation target in the future to meet the euro entry goal on inflation. This sets the limit at 1.5 percentage points above the average of the three EU countries with the lowest price rises.

"The stated facts signal that in case a clear political agreement is reached on the euro entry date, safe meeting of the inflation criterion may require a lowering of the inflation target from today's level of 3 percent," the daily quoted the analysis as saying.

The government is due to discuss technical issues related to euro entry at a meeting late on Wednesday. ((Reporting by Jan Lopatka, editing by David Stamp; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

Keywords: ECONOMY CZECH EURO