The Czech government approved a fiscal stimulus package on Monday aimed to ease the impact of the country’s sharply worsening economic downturn through tax cuts for businesses. PM Mirek Topolánek said the plan would pour into the economy funds worth 1.1% of GDP, or 1.9% including measures approved earlier. The plan is based on the assumption the economy would shrink by 1% or more this year, a darker scenario than the central bank’s 0.3% recession forecast and the finance ministry’s 1.4% growth outlook.
