© Reuters. FILE PHOTO: Czech Prime Minister Andrej Babis speaks at a parliamentary session in Prague, Czech Republic, June 3, 2021. REUTERS/David W Cerny
By Jason Hovet
PRAGUE (Reuters) – The Czech government has ditched a long tradition of frugality over the last few years by piling tax cuts and wage hikes on top of pandemic spending, putting the country’s debt on course to hit critical levels much faster than anyone expected.
That leaves an unenviable challenge for whichever party wins this weekend’s national election in the Czech Republic.
The Czech Finance Ministry forecasts public debt will hit 43.5% of