The government would have problems reducing the Czech Republic's structural deficit if it fully signed up to the European Union’s Fiscal Compact, the country’s prime minister, Bohuslav Sobotka, said on Wednesday. Mr. Sobotka said in order to meet its requirements the coalition would have to make cuts, which his Social Democrats would oppose, or raise taxes, which its partners ANO is against. The government approved accession to the stability treaty in March; however, it envisages taking on board the main planks of the compact only after the country adopts the euro.
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