The current premier and leader of ODS who has a mandate to form new government announced that ODS (Civic Democrats) ended negotiations with CSSD (Social Democrats). Note that the head of ODS will preset his second cabinet to president on Friday, December 15. The reasons behind the end of the negotiations are probably tax and social reforms. One thing that all parties agreed on is that the possible cabinet’s agenda will contain agreement not selling majority in CEZ during the electoral term (2010). State currently holds 68% stake in CEZ and plans to sell 6-8% to finance 2007 budget. Today’s press also informed about support for ODS from CSSD’s MP who recently left the CSSD parliamentary club.
Our view:
ODS most probably counts with of former coalition partners (KDU and Greens) backed by deserters form CSSD. Note that this government could get Parliamentary confidence, based on 101 vs. 99 votes it could theoretically get. However it is not absolutely clear if KDU and Greens are still willing to participate in this coalition as KDU’s new leader previously said it would not participate on government based on deserter’s vote. There is still a possibility of the third attempt to create a government.