Alexa
  • Directory of Taiwan

Czechs balk at lending IMF money to help eurozone

Czechs balk at lending IMF money to help eurozone

The Czech Republic's prime minister says his country will not contribute (EURO)3.5 billion ($4.5 billion) to the International Monetary Fund as part of efforts to stabilize the European debt crisis, saying the sum would have to be "significantly lower."
European leaders agreed last year to give the IMF another (EURO)200 billion ($256 billion) to use as a backstop for countries that might run into trouble because of the debt crisis.
But some of the countries most at risk in the debt crisis _ such as Italy and Spain _ are richer than the Czech Republic. That a poorer EU nation should set up money for richer ones has caused controversy, particularly in countries like the Czech Republic, which is outside the euro currency bloc where the jitters originated.
The Czech government is expected to vote on the issue next week.
Premier Petr Necas said Wednesday that he is personally against the plan to contribute so much money to the IMF. President Vaclav Klaus, a renowned euroskeptic, also opposes the loan and the central bank's governor Miroslav Singer called it "absurd."
Necase also sounded cautious on a new European treaty _ proposed by the 17 eurozone nations but open to all EU countries to join _ that would give bureaucrats in Brussels greater oversight of budgets.
Necas said the government would propose to hold a nationwide referendum on whether to join such a treaty if the details of the pact, currently being negotiated, show too much powers would be transferred to Brussels.
Necas said the government is split over whether to call a referendum but a majority in his three-party coalition supports it.
He said there is an option to hold such a ballot ahead of the country's entry to the eurozone. The Czech Republic is officially committed to join the euro but a date has not been set yet.
The referendum would need parliamentary approval.


Updated : 2021-10-25 02:52 GMT+08:00