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Czech 2027 Budget Loosens Fiscal Stance, Raises Consolidation Uncertainty

The Czech Republic's (AA-/Stable) draft 2027 budget and revised medium-term fiscal framework point to a marked loosening of the fiscal stance and a faster rise in debt, Fitch Ratings says. The prospect of sustained fiscal deficits above 3% of GDP, additional spending commitments and looser fiscal rules create uncertainty about the timing and pace of deficit reduction and could erode a ratings strength. [....]