CZECH REPUBLIC: The new cabinet of Czech Prime Minister Mr Stanislav Gross won a parliamentary vote of confidence yesterday, gaining a mandate to govern until elections scheduled for 2006.
The tight 101-99 victory in the 200-seat lower house ends a two-month political crisis sparked by the June resignation of the previous government due to a rout in the European Parliament election, just after the country joined the EU in May.
The vote was required by the Czech constitution and a failure would have automatically brought down the cabinet.
Mr Gross built his cabinet from the same three parties as the previous administration of Mr Vladimir Spidla - his left-wing Social Democrats and two centre-right partners. He is expected to continue moderate fiscal reforms aimed at joining the euro.
"The government pledges to adopt a series of steps so the Czech Republic can join the monetary union in 2010 at the latest," Mr Gross (34), a former train technician, told the chamber when he asked for confidence.
But he said the government would also give out loans and subsidies to young families and maintain free basic health services to keep "social peace".
The pro-EU government plans to hold a referendum on the European Constitution, and aims to improve the business environment by cutting red tape and reforming bankruptcy laws.
Analysts gave the government's programme a mixed welcome, saying past policies would stay in place while some measures to help business or cut welfare abuse would aid economic growth.
But they predicted the government would be too weak with its one-vote majority to push through a much-needed pension reform and halt a deepening deficit in the system.
The popular right-wing opposition Civic Democrats (ODS) - who are sceptical about the EU and pro-American on foreign policy and want to introduce a flat tax rate - criticised the government.
"What we are seeing is a hopeless, empty agenda, which will sentence Czech citizens to two years of stagnation, high unemployment, and the Czech Republic to the last place among new EU members in economic growth and the first place in debt rise," said ODS parliamentary leader Vlastimil Tlusty.
Financial markets had expected the government to win the vote, although some analysts said the crown currency could firm slightly against the euro on a positive outcome.