The Czech government approved a proposed set of long-term rules to manage public debt and avoid financial crisis. The proposal would also set limits on government debt and public spending and would force the government to survive a confidence vote in the lower house of Parliament if public debt exceeds 50 percent of the country’s GDP, according to Czech Finance Minister Miroslav Kalousek. Bloomberg also quoted Kalousek saying that the government should take preventive action if debt rises above 40 percent of GDP. The government’s policy will be supervised by the National Budget Council. The proposal would become a part of the state constitution, if approved by a majority vote in the Parliament.
