Czech PM seeks to ease EU fears amid vote crisis

Czech Prime Minister Mirek Topolanek's minority centre-right government lost a vote of confidence today

Czech Prime Minister Mirek Topolanek's minority centre-right government lost a vote of confidence today. The no-confidence vote will have no immediate impact on its ability to continue in its role as president of the European Union, Mr Topolanek said.

"At the moment this situation has no effect on the role of the President of the European Council," Topolanek said in a statement issued by the EU Presidency, which the Czech Republic is due to hold until the end of June.

The statement came hours after a previous remark by Mr Topolanek stating that the no-confidence vote would weaken the ability of the Czech Republic to lead negotiations among the 27-nation bloc on EU policy.

Mr Topolanek said he was ready to resign, although the opposition Social Democrats said before the vote that his government could stay on to complete the EU presidency, which the Czech Republic holds until the end of June.

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The three-party ruling coalition, weak since its 2007 appointment due to a lack of a parliamentary majority, lost by one vote after several defectors from its camp supported the left-wing opposition.

It was the third government collapse in eastern Europe this year after the leaders of Latvia and Hungary stepped down after their economies were hit by the financial crisis -- though Mr Topolanek's defeat was more to do with domestic wrangling.

Opposition Social Democrat leader Jiri Paroubek told a news conference ahead of the vote that, "this government can continue for some time as a government in resignation, it can complete the Czech EU presidency or its substantial part."

The opposition has blamed the government for economic mismanagement. Mr Paroubek said a government of non-partisan experts could be formed in the summer to lead the country to early polls in the autumn or next spring.

Regular polls are due in mid-2010.

Mr Topolanek said yesterday early polls should be held in the summer if he was defeated in the confidence vote and if there was no agreement on a new government.

Given the split parliament, it will be very difficult to form a new cabinet without an agreement of the main rivals, Mr Toplanek's right-wing Civic Democrats and the Social Democrats.

The Social Democrats lead opinion polls but their margin over Mr Topolanek's Civic Democrats has narrowed to 4.5 percentage points in the latest survey released last week.

The Social Democrats are heavily in favour of EU integration. They also oppose US plans to build a missile defence radar in the Czech Republic.

Although the Czech economy has suffered from a slump in exports, its banks have needed no bailouts, the public has been calm, and Czechs are not heavily exposed to foreign debt.

Despite the political turmoil the crown currency has held broadly steady after recovering from a drop earlier this year.

Reuters