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Czech fiscal tightening, last thoughts before Turkey’s vote

The Czech government’s long-awaited fiscal consolidation package unveiled this week will include fiscal tightening to the tune of 1.5% of GDP over 2024/25 and will come at the cost of weaker growth. But it appears that policymakers think this is a small price to pay to stabilise the public finances and tackle inflation. Meanwhile, all eyes will be on Turkey's elections on Sunday and the latest polls suggest that opposition candidate Kilicdaroglu’s odds of winning the presidency have narrowed. This could push the lira up sharply next week, but Erdogan may contest the result and there will probably be a lot of volatility in financial markets.

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