Politics: Coalition parties forming a new program

Coalition parties forming a new program In forming a new Government program, the three coalition parties, ODS, Christian Democrats and the Greens agreed on most of the issues apart from taxation (VAT) and energy. The Greens were pushing for no additional nuclear blocks being built over the next four year and keeping the current mining limits. While it has been clear that there will certainly be no new nuclear blocks built in the next four years, the mining limits may affect CEZ’s decision on replacement of its aging coal capacities –should the mining limits be kept, CEZ could replace only 45% of its 5,200 MW coal capacities against 70% should the limits be broken.

However, note that the Government must win a vote of confidence by 101 votes while is has only 100 seats. We believe that the Government will not get the vote of confidence in the first run (there are three) as the CSSD (Social Democrats) prefer to support a minority Government rather than a Government with 100 seats as it would be for CSSD impossible in the future to give the Government vote of no-confidence (101 votes needed). Therefore, it is likely that some sort of grand-coalition II may be the solution while both ODS and CSSD agree on the need to build new nuclear blocks to cover the increasing demand for electricity in the region while production capacities accompanied by declining production capacities.