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Czech government toppled, deadlock remains
Published in Saudi Press Agency on 03 - 10 - 2006

The Czech Republic edged closer to
early elections on Tuesday after Prime Minister Mirek
Topolanek's rightist minority government was toppled in a
parliamentary confidence vote, according to Reuters.
Parliament has been deadlocked since a June election with
leftist and centre-right parties each controlling 100 seats and
Topolanek was expected to lose the vote since the two sides
failed to reach a deal on support.
According to official results, 99 deputies voted against the
government in the 200-seat lower house, while 96 voted in favour
and five were not present.
"The public wants early elections, the public didn't mind
this government," Topolanek said after the vote, urging
parliament to move quickly to a resolution of the crisis.
"I think that after we submit our resignation, which could
be next week at the earliest, we will start negotiations on a
bilateral level and then on some kind of group level (to resolve
the deadlock)," he added.
Political turmoil has shaken much of central Europe in
recent weeks. Financial markets have been unnerved by
anti-government protests in Hungary, and by the Polish
government cracking apart.
But the Czech deadlock has failed to hit markets, with
investors instead focusing on a strong economy that shows few
ill effects.
Analysts said, however, the country needs to ensure reforms
to sectors such as healthcare, public finances and pensions
remain on track for the adoption of the euro.
The crown currency slightly weakened after the vote, easing
to 28.280 to the euro from 28.265 just ahead of it.
"Without a clear resolution within one or two months or so,
the lasting political deadlock may undermine rating agencies'
belief that the country is serious about tackling fiscal
problems, which may have negative repercussions," said Viktor
Kotlan, chief economist at Ceska Sporitelna.
President Vaclav Klaus now has the right to pick a second
prime minister, including Topolanek once again.
But his advisers have said that any candidates must be able
to show they have a majority in the lower house before Klaus
will nominate them.
They added that the right-wing president is likely to push
for a government of experts followed by early elections.
Klaus, currently on a tour of Asian nations, was quoted by
the CTK news agency as saying that he would not name a new
candidate before local and senate elections, which begin on Oct.
20 and run until Oct. 28.
Former Prime Minister and Social Democrat leader Jiri
Paroubek has been unable to show he could win a confidence vote,
but he said he is still against early elections and wants to
explore forming his own government.
"It's now very important who Klaus picks to form a
government, if he does. I think he pretty well has to choose
Paroubek, who will likely get a chance in the third attempt
anyway as the right has failed," said Petr Just, a political
scientist at Charles University.
A third candidate is chosen by the house speaker. A Social
Democrat currently holds the speaker's post, but was sworn in
under an agreement among parties that he would step down before
it was his turn to nominate a prime minister.


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