As expected, the current Government stepped down yesterday, while the President named the ODS leader, Mirek Topolanek, a new PM. Topolanek has now 30 days to form a Government and to ask the lower house for confidence. CSSD’s leader, Jiri Paroubek, said that CSSD’s tolerance of ODS’s minority Government may happen already next Wednesday. In the mean time, both parties, ODS and CSSD are working on candidates for ministerial positions and a program acceptable for both, which would inevitably include concessions from both too.
Our view: From the comments of the CSSD’s leader, we see the chances that both parties ODS and CSSD would finally agree on the tolerance of ODS minority Government. For stocks, it would be obviously positive mostly for CEZ as it would remove the risk of preserving the current mining limits required by the Greens.