The centre-right coalition proposed CSSD to support its program, which would be based exactly on CSSD’s 10 main program points including i.e. unemployment below 6%, 5% GDP growth, average wage of CZK26.5k etc. However, the coalition would reach these goals using different tools compared to CSSD. CSSD said that it wants to hold negotiations on the tools to reach the specified goals. CSSD also said that they would again nominate its candidate for the Lower House’s speaker’s position (election to be held on Friday, July 28).
Our view: We view the coalition’s move as rather smart as CSSD cannot effectively refuse its own program, which may break the current deadlock and give a way for the centre-right to form a Government. Nevertheless, in the light of the recent political development, CSSD may again find arguments not to support the centre-right coalition program by i.e. refusing the tools for reaching the program’s goals. The election of the Lower House Speaker is not certain yet neither as no agreement between the centre-right and CSSD has been reached yet.