Czech government proposes plan to limit public debt within EU limits

Government And Institutions Associated Press

The Czech government has approved a plan to cap public debt within a limit set by the European Union.

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The plan approved Monday limits public debt at 55 percent of GDP. If it exceeds that limit, the government would be required to take a series of measures — including a 20 percent cut to the salaries of politicians.

Last year, the overall public sector debt of the Czech Republic reached 43.2 percent of GDP.

The plan still needs parliamentary approval.

The current center-left government doesn't have the required three fifths majority in Parliament's lower house and will have to rely on the conservative opposition parties or the maverick Communists to push it through.