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.

At least 23 people have now died in Europe's flood disaster as the Polish city of Wrocław sees the level of the Oder river peak and Austria begins planning for "years" of reconstruction. The water level on the Oder river flowing through Poland's fourth-largest city Wrocław peaked overnight and is expected to stay high for some time,

Central European countries have suffered enormous damage to infrastructure and housing during the current flooding that has claimed 24 lives in the region. European Union chief Ursula von der Leyen on Thursday pledged billions of euros for flood recovery.