CSSD refused the ODS proposal for a Rainbow coalition across all political parties, i.e. ODS (Civic Democrats), CSSD (Social Democrats), KDU-CSL (Christian Democrats) and Greens without Communist with the mandate until the summer 2008. CSSD is proposing a ‘reform’ Government until 2009, which would include ODS, CSSD and Christian Democrats; note that regular elections are scheduled for 2010.
Our view:
Apart from a short break, ODS has been refusing early election in 2009 (just one year before regulator elections) while supporting early elections in 2007 of 1H08. The political deadlock seems to continue and early election triggered by a unsuccessful third attempt are again becoming also possible. Should ODS, CSSD and Christian Democrats agree on a Government, it could be favourable to CEZ given the Greens opposition against extension of mining limits and building of new nuclear blocks.