Prime Minister Milos Zeman reportedly intends to announce a new finance minister today. The local press are speculating that it will be either Jiri Rusnok, the deputy minister of labor and social affairs and a member of the National Property Fund presidium, or Vladimir Spidla, the minister of labor and social affairs and the newly elected Social Democrat leader (in the latter case, Mr. Rusnok would take over Mr. Spidla’s current ministerial position). While the final impact of the new ministerial appointment on equities will depend on the new minister’s policy views and conduct, an early appointment is seen as crucial for privatization to continue without significant delay and may help the local financial market. Both candidates for the job will likely represent a shift to the left (vs. Mr. Mertlik, the outgoing finance minister) in terms of fiscal policy (taxes, public deficit, etc.), but the government’s commitment to privatization should not be at risk.
(Ondřej Daťka)