The current Prime Minister and ODS leader, Mirek Topolanek, said that even if the current minority Government does not get the 101 vote need for confidence, the Government may stay in power as long as it receives 100 votes. Note that ODS together with the Greens and Christian Democrats have together 100 votes but neither party confirmed that it would support the ODS minority Government. The vote of confidence is scheduled for October 4.
Our view:
The constitutional law does not seem to be clear enough to see whether ODS can govern without confidence or not nevertheless constitutional experts are not convinced about the ODS plan. In any case should ODS stay in power, the sale of the state’s 16% stake in CEZ (gradual with 8-10% stake next year) will likely happen, Philip Morris CR may benefit from more gradual excise tax hikes.