The impact of recent scandals involving the improper use of EU funds could widen into a fiscal emergency for the Czech Republic. Czech prime minister Per Nečas has revealed that it could end up being measured in percentage points of GDP. The warning came ahead of discussions he was scheduled to have with European Commission José Barroso. Nečas says the problems could get even worse once the financial markets realize the country was unable to reduce its deficit as planned. He says there’s insufficient financing to cover demand for EU funding and that as a result the country will support an increase in the EU’s budget next year.
