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The Social Democrats have agreed on the forming of a new government with the two parties in the Coalition grouping, the Christian Democrats and the Freedom Union. After talks on Wednesday night, the leader of the Christian Democrats, Cyril Svoboda, said that negotiations on the division of ministries should be completed in the next few days. The Social Democrats, who are led by Prime Minister-to be Vladimir Spidla and came first in elections almost three weeks ago, are to have 10 cabinet seats; the other two parties will have six between them. The number of deputy chairs in the Chamber of Deputies will reflect the number of seats held by all five parties in the lower house. The Social Democrats will have the chairmanship and one deputy chair, the Civic Democrats two deputy chairs and the other parties, including the Communists, will have one each.

Meanwhile, the Social Democrat leader Vladimir Spidla, who is positioned to become the country's next prime minister, is preparing for talks with potential coalition partners. Mr. Spidla has ruled out a coalition with both the Civic Democrats and the Communists, saying that he would first talk to the leaders of the centre-right Coalition. A governing coalition between the Social Democrats, the Christian Democrats and the Freedom Union is seen as the most likely set-up although it would command only a slim one-vote majority in Parliament. If these talks fail, the Social Democrat leader has said he is not ruling out a minority government with the support of one or more parliamentary parties.

Vaclav Klaus, the head of the centre right Civic Democratic Party has openly admitted defeat, saying, shortly after his meeting with President Havel, that his party had little choice but to go into opposition . Mr. Klaus refrained from commenting on his own uncertain future, refusing to say whether he would accept full responsibility for the party's show down and resign from his post. He told journalists that he must first consult the matter with the party leadership . The election results appear to rule out any ambitions of a return to power for the 60 year old former economics professor and his chances of becoming the next Czech president are slim.

Early election results from the Czech Republic's two day parliamentary elections show a clear victory for the country's left wing parties. The ruling Social Democrats have won the elections with over 30 percent of the vote. This positions party leader Vladimir Spidla for the top government post. Shortly after the news broke Mr. Spidla shared his feelings with Radio Prague:

" It is a clear victory for the Social Democrats. The Social Democratic Party has established itself as a stable political force which is a permanent part of the Czech political scene and has a potential for the future. We are a strong party in our own right and people trust us."

The Social Democrats attracted voters by promising to build a dense web of social security and benefits. The party's main slogan was "We won't leave you in the cold".

The Social Democrats' main rival , the centre-right Civic Democratic party led by the former prime minister Vaclav Klaus, received over 24% of the votes and has openly admitted defeat. Mr. Klaus said he would consider his share of responsibility for the defeat and inform the public of his plans for the future after consulting with the party leadership.

In a surprise development the Communist party has placed third with more than 18 percent of the vote outstripping the Coalition, an alliance of two centre-right parties. According to early results the Coalition has received more than 14 percent of the votes. No other party has crossed the 5% threshold needed to win parliamentary seats.