The leader of ODS (Civic Democrats), Mirek Topolanek, should preset his 2nd government to the President today afternoon. The current premier will most probably present renewed coalition of ODS-KDU-Greens, while the coalition agreement is not signed yet. This cabinet has to ask for Parliamentary confidence in 30 days after designation from president. Topolanek plans to ask for confidence in mid-January. The new Government plans to CZK20 fee per prescription, fees for hospital stay and specialists visits. The coalition has still not agreed on ‘ecological reform’, which assumes increase of excise taxes on coal and gas for electricity production purposes; note that the Greens are pushing for higher than EU required taxes.
Our view: The likelihood of the ‘new’ Government to receive the confidence vote in the Lower House is somewhat higher than in the past as the left wing (Social Democrats and the Communists) cannot rely on their 100 votes following the resignation of two CSSD (Social Democrats) MPs, while one of them mentioned support for the new Government. Again, the Green’s anti-nuclear and anti-mining view is becoming more relevant, nevertheless, we note that both major parties, ODS and CSSD are in favour of extending the current nuclear capacities (CEZ). In addition, there are little other solutions for the country then extending nuclear capacities in order to remain electricity-independent.