Czech debt trajectory accelerates, budget council warns of unsustainable finances

The National Budget Council, an independent fiscal watchdog, released a report indicating that the Czech Republic is moving away from earlier signs of fiscal consolidation. The council highlighted a trend of growing public debt and higher costs for servicing that debt. It also condemned the recent relaxation of established budgetary norms, arguing that the changes make it impossible to calculate a maximum possible deficit.

Council chair Mojmír Hampl described 2026 as a pivotal year, warning that the newly adopted provisions could open the door to larger budget shortfalls in the future. The council urges the government to adhere to stricter fiscal discipline to restore sustainability.