PM gets crisis scenario for the economy

The government’s economic advisory council NERV is to acquaint the prime minister with a detailed crisis scenario for the Czech economy. The package of 40 measures should be adopted if there is danger of the GDP dropping by more than 2 percent. The measures include a single VAT rate of 20 percent, a freezing of pensions, layoffs of police officers, higher bank taxes and shorter university studies, among others.

The Finance Ministry is expected to present a concrete plan of action in January 2012, when a more precise forecast of the Czech Republic´s economic development will be made available.