Czech euro target depends on fiscal reform-report

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, daily Hospodarske Noviny reported on Wednesday, quoting an analysis prepared by the Finance Ministry and the central bank.

The country has effectively abandoned its 2010 euro entry target due to deepening budget deficits which will prevent meeting the Maastricht criteria for adoption of the single currency.

The daily added that the report also said the central bank may have to cut its 3 percent inflation target in the future to meet the euro entry criterion on inflation. ((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