News

The new coalition government of Prime Minister Stanislav Gross has passed its first crucial test, receiving a vote of confidence late Tuesday, some 7 hours after deliberations began in the Chamber of Deputies. Throughout the day Parliament heard extensive speeches from MPs either for or against the government. The prime minister spoke at length about the goals of his cabinet, saying it would make social issues a priority. However, the opposition Civic Democrats, expressed their dissatisfaction with the government's programme, warning it would lead the country to stagnation and debt.

No MPs from either opposition party - the Civic Democrats or the Communists - voted in the cabinet's favour.

Finally, because the ruling coalition enjoys just the slimmest of majorities - 101 votes in a 200 member parliament - two ill MPs were required to leave their hospital beds on Tuesday to make an appearance in the Lower House. Their presence ensured the new government was able to clinch the minimum number of votes.

The Czech cabinet has approved the appointment of former dissident Ales Sulc as the new head of the government's office. Mr Sulc, the current head of the interior ministry's security department, replaces Pavel Pribyl, who resigned on Friday following growing public pressure over his past in the communist era police - he headed a riot police unit that violently dispersed anti-communist demonstrators in January 1989. His successor, Ales Sulc, is a human rights activist and signatory of the Charter 77 human rights manifesto.

The Chamber of Deputies, in session on Tuesday, heard a number of speeches from MPs ahead of a confidence vote on the new coalition government led by Prime Minister Stanislav Gross. Earlier in the session on Tuesday the prime minister spoke at length about the goals of his government, saying it would make social issues a priority.

However, the opposition Civic Democrats, expressed their dissatisfaction with the new government, warning it would lead the country to stagnation and debt. None among the official opposition, neither the Civic Democrats, nor the Communists, are expected to vote in the cabinet's favour.

Finally, because the government enjoys just the slimmest of majorities - 101 votes in a 200 member parliament - two ill MPs were required to leave hospitals on Tuesday to make an appearance in the chamber, in order to ensure the new government was in postion to gain enough support.

The confidence vote is expected later on Tuesday night.

Ahead of the Czech National Bank's meeting later this week, Finance Minister Bohuslav Sobotka said on Tuesday the National Bank should not rush an interest rate hike. It has been widely expected the bank will raise rates by a quarter point to 2.50 percent. But, the finance minister said he had a more optimistic prognosis for inflation in 2004 and 2005, expecting the inflation rate would stay below 3.00 percent.

The Czech National Bank is an independent institution on which the government wields only limited influence. Nevertheless, on Tuesday Minister Sobotka suggested the bank should "act responsibly" in lieu of the cabinet's plan to kick-off high growth.