Czechs warn on EU fiscal plans

The Czech Republic has warned the European Union against borrowing its way out of the global slowdown.

The Czechs are the current holders of the rotating EU presidency.

"There is a risk that if discipline is not adhered to, we'll have real problems," finance minister Miroslav Kalousek said.

He urged members to clamp down on increased public spending, even as the eurozone and the UK headed into recession.

Mr Kalousek also said the economic downturn should not be made worse by "untrustworthy policies exercised by some countries", but did not name which member states he meant.

The comments follow criticism last month by the German finance minister, Peer Steinbruck, of the UK's decision to cut VAT and raise the national debt to record levels.

"It must be hoped that when the period of crisis is over, everybody will come back to fiscal and financial discipline," Mr Kalousek said.

The Czechs assumed the rotating six-month EU presidency from the French on 1 January.