The new coalition Cabinet (including the Social Democrats, the Christian Democrats and the Freedom Union) is scheduled to ask Parliament for a vote of confidence (expected to begin at 2 pm CET); given its narrow majority of 101 out of 200 MPs, it is expected to be successful. Its program should not cause significant changes to recent government policy; no major pension- or health-system reforms are scheduled, and no considerable changes to the revenue side of the state budget are expected either (excluding the already announced excise tax increases). Should the government not win the vote of confidence, there would be a second attempt for the designated prime minister to form a new Cabinet – a process that would take several weeks. In that case, domestic blue chips would likely react negatively, including the to-be-privatized companies (Cesky Telecom, possibly CEZ).
Jan Hájek, Patria Finance