Just a week ago, before deadly floods swept through central Europe, the Czech Republic looked on track to become the first country in the region since COVID-19 to pull its budget deficit firmly below the 3% of GDP cap set by European Union rules.

Severe floods have disrupted financial stability in the Czech Republic and Poland, jeopardizing efforts to control budget deficits post-COVID-19. The damage might cost $10 billion, with EU funds covering only part of the expenses.

WARSAW, Poland (AP) — Massive floods pounded Central Europe on Monday, killing four more people in Poland and one in the Czech Republic.

Central Europe is experiencing the worst floods in at least two decades, with a trail of destruction from Romania to Poland and and the deaths of at least 23 people so far.