Despite having refused to sign the ‘fiscal compact’, the Czech Republic should meet its fiscal discipline requirements and keeps the option open of joining later on.

After a meeting with German Chancellor Angela Merkel, on 3 April, Czech Prime Minister Petr Necas said his country – despite not being a eurozone member – would “de facto” meet the conditions in the ‘Treaty on stability, coordination and governance in the Economic and Monetary Union’. He stated that the Czech Republic’s public deficit is expected to be 3% of GDP in 2013 and that the government debt stands at 41% of GDP, well below the Maastricht criterion of 60%.

“Even if the Czech Republic has not yet signed the fiscal pact, we know that the government keeps the option open,” said Merkel. “Maybe the Czech Republic will sign later,” she went on, adding that there was “no pressure” on Prague. She hopes that the Czech Republic could act as “a great example” of a country that plays by the rules.

Prague dropped out of the pool of fiscal discipline enthusiasts after its request for a seat at all euro summit meetings was met with a resounding ‘no’. The UK is the only other country that refused to sign up to the treaty.