The government agreed on a plan to combat the effects of the financial crisis with the Czech Union of Towns and Municipalities on Monday. At a news conference after the meeting, Prime Minister Jan Fischer said the government would give Czech towns some 2 billion crowns (112 million USD) to help fight the economic downturn, and would set aside another 2 billion crowns in reserve. Head of the Union of Towns and Municipalities Oldřich Vlasák said that the lion’s share of the money would be spent on services conducted at a regional level on behalf of the state. Mr Vlasák added that, at the moment, municipalities are covering up to 70 percent of the cost of such services.
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