Prime Minister, Jiri Paroubek, said yesterday, that he may not resign today as announced last week as the Lower House of Parliament failed to elect its leadership last Thursday continuing the current deadlock. Note that new elections in the Lower House are scheduled for Friday.
Paroubek also called the current centre-right coalition (ODS, Christian Democrats and the Greens) as dead and said that further talks should be held between ODS and CSSD. This would confirm our previous assumptions that the centre-right would not get the needed vote of confidence and that a grand-coalition (ODS and CSSD) or a minority ODS Government backed by CSSD would be created. This would mean significant concessions from both sides. For stocks, the most obvious would be support for new nuclear blocks and breaking of the current mining limits (blocked by the Greens currently), in our view.