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Czechia is facing a debt disaster

Brittany Jordan

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Growth of Czech debt is the second-fastest in the EU

Czech government debt is sixth-lowest in the EU, however

This year, another almost 400 billion crowns, and next year “only” 300 billion will be added to the debt; meanwhile, it is almost certain that the government will not collect as much as it planned for extraordinary taxes, which is a claim confirmed by the National Budget Council. As for the following years, the planned debt levels are 280 billion crowns and then 260 billion crowns.

In clear language, that means the state will spend in six years as much as it collects from people and companies in seven years, and the government is doing absolutely nothing to avert this impending disaster.

Even taking the Covid-19 indebtedness as a one-time problem, we can already see that our situation is unsustainable in the long term. Unless very serious savings come, we are going to have to raise taxes, but Petr Fiala — who won the election with the promise of “We will stop borrowing, it is the number one priority!” — pretends that it does not concern him.

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Brittany Jordan is an award-winning journalist who reports on breaking news in the U.S. and globally for the Federal Inquirer. Prior to her position at the Federal Inquirer, she was a general assignment features reporter for Newsweek, where she wrote about technology, politics, government news and important global events around the world. Her work has also appeared in the Washington Post, the South Florida Sun-Sentinel, Toronto Star, Frederick News-Post, West Hawaii Today, the Miami Herald, and more. Brittany enjoys food, travel, photography, and hoarding notebooks and journals. Her goal is to do more longform features journalism, narrative writing and documentary work, and to one day write a successful novel and screenplay.

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