The Czech government’s ruling parties failed to reach an agreement regarding the country’s accession to the European Union fiscal pact. TOP 09, a junior member of the Czech coalition government, is pushing for the country to join the European Union fiscal pact. The leaders of the coalition said they will revisit the issue later. The Czech Republic and the UK are the only EU countries that have not signed the pact which stiffen budget rules in an effort to stabilize the euro.
TOP 09 said Tuesday it would not sign the new coalition agreement with the Civic Democrats (ODS) and the Liberal Democrats (LIDEM) unless the Czech Republic joins the European fiscal pact in 2013. It also said that rejection of the fiscal pact makes Prague’s position in the EU unclear. ODS rejected TOP 09’s demand, calling it a useless ultimatum.
