Current Prime Minister (CSSD), Jiri Paroubek said that his Government will resign on Monday (July 3), which would allow the President to name Mirek Topolanek (ODS; the winning party) a new Prime Minister. Topolanek would have then 30 days to ask the lower house of parliament for the vote of confidence. Nevertheless, in order to ask the Lower House of Parliament for the confidence vote, positions in the lower house must be filled. Paroubek (CSSD) is, however, demanding a CSSD person to be given the post of Head the Lower House while the Communist party should be given one of the deputies position. The election of the Head is scheduled for today with only one Candidate from ODS, Miroslava Nemcova, hence her election is not likely. Paroubek also said that CSSD would not support the centre-right (ODS, Christian Democrats and the Greens) coalition program in its current form (flat individual and corporate tax, etc) and demands talks on the program to incorporate CSSD’s demands. The centre-right refuses to negotiate with the Communist. The centre-right is hoping to eventually win the vote of confidence by achieving at least one vote from either CSSD or the Communists (note that 101 vote is need while centre-right has only 100 seats). CSSD says that should they be given the chance to form a new Government, they would attempt to create a minority Government with the support of the Communists.
Our view: Seemingly helpful step from the CSSD does not solve actually anything and prolongs the current deadlock. We believe that the centre-right would fail the first round of the vote of confidence. A potential solution to the current situation seems to be a minority Government (ODS) with support of CSSD or preparations for early elections in the near terms (1 or 2 years).