CSSD (Social Democrats) proposed a coalition with ODS (Civic Democrats) and KDU-CSL (Christian Democrats) called agenda 2010. The two biggest parties, CSSD and ODS, started to discussions on reform program of such a coalition, which would last untill 2010, when the regular elections are scheduled. The program should include pension reforms, lower corporate taxes to 20% from the current 24% and EUR adoption by 2012. The leader of CSSD stated that also Greens may participate in new coalition, nevertheless they have been refusing such a solution to the current deadlock.
Our view: Given ODS’s warming up towards CSSD’s proposal and willingness to negotiate, we believe that such a cabinet becomes probable as it would easily reach majority in the chamber and win the vote of confidence. Should ODS, CSSD and Christian Democrats agree on a Government, it could be favourable to CEZ given the Greens being in the opposition. Note that the Greens are against extension of mining limits and building of new nuclear blocks.