Final Word from Wednesday, July 10, 2002
When ČSSD announced its big spending plans last week, the financial markets were caught unpleasantly by surprise, according to analysts at ČSOB, and bond yields surged briefly. Euro magazine went so far as to question whether the Špidla cabinet will truly be pro-European, giving its questionable regard for meeting the Maastricht requirements needed for adopting the euro. Executive Director Weston Stacey of the American Chamber of Commerce said that direct investors are curious to see which way the Špidla cabinet will head and are reserving their judgment for now. For continued investment andgrowth, Stacey said, Špidla will have to steer a path of policy moderation. Euro added that the cabinet will clearly be more socialist than is healthy. Viliam Buchert of MFD said we still don't really know what the new premier is planning.