ODS has received a majority in the Senate, i.e. 41 seats out of the total 81. In theory ODS could form a coalition with Social Democrats (CSSD) or Christian Democrats in order to gain a constitutional majority, i.e. being able to change the constitution or election bills, nevertheless, any coalition with CSSD was rejected by ODS’s leader immediately. The President should now appoint another/the same person to form a Government. The President’s spokesman indicated that it will be ODS again. At the same time, leaders of all parliamentary parties except for the CSSD would agree to would support a technocratic Government leading to early elections subject to several conditions, i.e. no privatization of CEZ required by the Communists.
Our view:
We believe that it would be a person from ODS, who would try to form a technocratic Government, which would bring the country into early elections, most likely in the 1H07. The chances of such a Government winning the required vote of confidence in the Lower House (101; majority needed) are rising given (i) the support of early elections from all parties except the Communists and (ii) departure of CSSD’s member Michal Pohanka, who could abstain from the voting.