ODS believes that it can form a new Government based on a wide support of all parties expect from the Communist. ODS’s acknowledged that early elections could happen as late as in 2009 (regular scheduled for 2010) and not next year. Both CSSD and Christian Democrats (KDU) seem to be in favour of ODS’s proposal while the Greens prefer early elections as soon as possible.
Our view: The current signals suggesting that both ODS and CSSD can agree on a Government are the strongest since the elections in June and therefore the likelihood that ODS succeeds this time is relatively high. The Greens would likely reject the new Government and become an opposition. We remind that the Greens were against the extension of coal mines and building of new nuclear blocks. Both ODS and CSSD in fact support both issues, which could be favourable to CEZ.