Czech parties agree to cut budget gap, taxes

28.12.2006 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

A deal to form a three-party centre-right Czech government contains a pledge to slash the country's fiscal deficit to 3 percent of gross...

...domestic product in 2008, the coalition agreement showed.

The deal, published on Thursday after party chiefs signed it, pledged to cut the gap further to 2.6 percent of GDP in 2009 and 2.3 percent in 2010.

It also promised to introduce a single personal income and corporate tax rate of between 17 and 19 percent.

The three parties have just 100 seats in the 200-seat lower house of parliament and it is not clear if their planned cabinet would win a confidence motion demanded by the constitution.

[PRAGUE/Reuters/Finance.cz]

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