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Czech Republic joins EU fiscal treaty

Staff writer |
The Czech cabinet agreed to join the European Union's fiscal compact on budget stability, in a move it said underlined Prague's support for closer EU integration after a period of relatively eurosceptic government.

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Apart from the Czech Republic, the only other member states not to have adopted the compact are Britain and EU newcomer Croatia, which joined the bloc last year, reports EurActiv.

The Czech parliament must still approve the decision by Prime Minister Bohuslav Sobotka's new centre-left cabinet. The previous centre-right government had refused to join the compact, which enshrines tough and legally binding fiscal rules.

"With this decision, we return to the mainstream of European integration. It is an important step which naturally is on the path to the future adoption of the common European currency," Mr. Sobotka told reporters.

Mr. Sobotka's government has said it will not set a euro adoption date during its four-year term. He has said he could see the Czech Republic joining the euro zone around 2020.

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