published: 14.03.2013, 19:35 | updated: 14.03.2013 19:41:24
Brussels - The Czech Republic advocated the reduction of the structural budget deficit long before today's EU summit had started discussing it, Prime Minister Petr Necas said today.
Necas said the government had already moderated the reducing of budget deficit not to hamper growth.
Necas said it was not appropriate to speak about a risk of social explosion in connection with European economic problems.
EU leaders are expected to support emphasis on reducing structural deficits that are lower because they not include cyclic fluctuations of the economy.
This approach may provide more time to the countries like Italy and France that will face problems when trying to observe the required deficit target of 3 percent of GDP.
A debate on the balance between budget cuts and support to growth is expected to take place at the summit.
"We have always emphasised a decline in the structural deficit," Necas said, adding that even before the summit his government had reacted to the economic downturn by lowering the pace of the cuts.
At the beginning of its election term in 2010, the government vowed to push the deficit down to 1.6 percent of GDP, Necas said.
"However, we will stay below the 3 percent so that the economic growth were not stifled," he added.
Luxembourg Prime Minister Jean-Claude Juncker said before the summit that due to the stagnation and high unemployment he could not rule out the risk of a social revolution.
Necas said these were "uselessly expressive words."
"There are of course countries in which the social situation is very tense," Necas said, adding that the Czech Republic "has the sixth lowest unemployment from the whole of the EU."
"There are some countries in which the unemployment of the young reaches 50 percent," Necas said.
"The problem is of course very serious, but using such expressive words does not correspond with the situation," Necas said.
The summit is expected to confirm the spending of 6 billion euros on the fight against youth unemployment.
Necas said the aid would mainly relate to the countries with a high unemployment of the youth under 25.
"In the Czech Republic, the situation is rather good in this respect. We have the ninth lower unemployment of the people under 25, standing at slightly over 20 percent," he added.
In the Czech Republic, the aid will only relate to some regions, probably the Usti Region in North Bohemia, Necas said, adding that the specific aid would depend on accurate calculations.
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