Financial Times FT.com

EU stimulus plan poses ‘risk to debt refinancing’

By Tony Barber in Prague

Published: January 8 2009 13:14 | Last updated: January 8 2009 13:14

The European Union’s €200bn fiscal stimulus plan to conquer recession may harm the ability of some governments in the 27-nation bloc to refinance their debts, the Czech Republic’s finance minister warned on Thursday.

Miroslav Kalousek, whose country took over the EU’s rotating presidency on January 1, said EU governments were divided between advocates of extra deficit spending to overcome the recession and others that insisted on fiscal discipline.

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