PRAGUE, March 24 (Reuters) - The Czech centre-right minority
government lost a parliamentary no-confidence vote on Tuesday,
which will force it to resign midway through the country's
six-month EU presidency.
However, the cabinet of Prime Minister Mirek Topolanek can
stay on until political parties agree on a way forward or until
President Vaclav Klaus appoints a new administration.
The following are comments from political and markets
analysts following the no-confidence vote.
LARS CHRISTENSEN, ECONOMIST, DANSKE BANK
"Obviously this is bad news for the Czech markets. It is
quite clear we have not had a strong government, but this throws
the Czech Republic into a political crisis."
"This also has a significant European dimension, which can
add to nervousness."
"This government always had a fragile majority... but this
is not what happened in Latvia or Hungary, where economic
disconsent (happened)."
"But on the other hand we have more uncertainty about Czech
economic policy going forward. I still wouldn't draw strong
conclusions."
PAVEL SARADIN, POLITICAL ANALYST, MASARYK UNIVERSITY
"For the EU presidency, this doesn't mean much. The Social
Democrats have said they will not block the government in the
performance of its duties."
"I think that if elections were to be tied to European
Parliament elections, it wouldn't be very realistic. It would
hard to imagine that in July or August, when people are on
holiday. The most likely ideal period would be sometime in
September or sometime in the autumn of 2009."
NEAL SHEARING, ECONOMIST, CAPITAL ECONOMICS
"It was always a weak coalition in the best of times and
depended on opposition or independent deputies. But looking at
the market reaction, the crown was sold off, so that would
suggest it was a bit of a surprise."
"The key to all these things is what happens next. Thinking
through the scenarios, similarily like in Hungary, if we end up
with a technocrat government... then it could end up being
market positive. It's all down to who we get now."
"If on the other end you end up with a period of infighting
it could be market negative and economy negative and could end
up in a big mess."
JIRI PEHE, POLITICAL ANALYST
"There are two things: One is that the role of President
Klaus has been strenghthened."
"The second point concerns the European Union... The Czech
presidency has basically already ended because I think it has
become a formality."
JAN KUBACEK, POLITICAL ANALYST,
"It is a slight surprise, but it really showed that the
critical deputies have already chosen another path and think
differently about the government's future, giving a green light
to negotiations and especially to the president, because now he
will be the most important player."
BOHUMIL DOLEZAL, POLITICAL ANALYST, CHARLES UNIVESRITY:
"What will follow now depends mainly on the president
(Vaclav Klaus). The government is in resignation until the
president appoints the new prime minister... which he can do
whenever he pleases, the constitution does not bind him."
"Regarding the (EU) presidency, there has been similar
situation in Denmark or Italy, where the government even changed
during the presidency... on the other hand these are established
democracies."
(Reporting by Jason Hovet; Editing by Michael Winfrey)
