Cabinet approves exits from crisis

Prague, Feb 8 (CTK) - The Czech cabinet Monday approved government's "exit strategy", that is the proposals how to proceed as the current economic crisis subsides, Prime Minister Jan Fischer said at a press conference after government meeting Monday.

In the document, the government puts healthy public finances, that is, lowering their deficit, as a condition for the revival of the economic growth.

The government's "exit strategy" reckons with consolidation of public budgets, higher taxes and fight against corruption. Also, the government wants to preserve the real estate tax and consumption tax. VAT rates would remain at 10 and 20 percent, respectively and individual income tax would rise to 25 percent.

Trade unions and employers had criticised the document. Eventually, the cabinet drafted it as a legacy for future governments, agreeing with trade unions and employers on 38 short-term anti-crisis measures which it approved Monday.

Among these are, for instance, improving the business environment, reducing the administrative burden on business, modernisation of the coal-fired power plant Prunerov, completion of the nuclear power plant Temelín and construction of sluices on the Labe river.

However, the Green party's (SZ) ministers said Monday they will not fulfill tasks related with measures agreed upon with the tripartite.

SZ chairman Ondrej Liska called the government decision as a victory of the industrial lobby.