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In related news, negotiations on a minority Civic Democrat government may face complications: on Monday outgoing Prime Minister Jiri Paroubek suggested to reporters that if negotiations continued in the vein they have until now, Social Democrat support for such a government was "unlikely". Mr Paroubek would not comment on reasons behind the latest statement, but it is known from earlier negotiations that the Social Democrats want a say in the government line-up, including putting forward the names of unaffiliated experts. Civic Democrat leader Mirek Topolanek, meanwhile, commented Mr Paroubek's statement saying it could be connected to the president's recent promise that Mr Paroubek could also - in a certain phase [of post-election developments] - be entrusted with trying to form a government.

The Finance Ministry has proposed a state budget deficit of 88 billion crowns, the equivalent of around 4 billion US dollars, for next year. The Finance Ministry - counting on revenues of almost 880 billion crowns - has said it expects 5 percent economic growth and inflation at 2.8 percent in 2007. Unemployment is expected at about 7.4 percent. In order to meet the proposed figures the ministry has said that a number of projects will need to be put on hold, among them an amendment to the law on health insurance. Raising sales tax on tobacco products to meet EU norms will also be a necessity.

In the next year, the deficit should be no greater than 3.8 percent of the GDP to keep the country within the parameters set in the euro convergence programme. The Czech Republic is aiming to adopt the European Union's currency in 2010.

The Czech national football side is preparing for its friendly match against Serbia, the teams' only preparation game before the qualification rounds for the European Championship begin in September. Players have met in Prague ahead of the game, which takes place on Wednesday. The team will be without a number of injured players and it will be its first game without midfielder Karel Poborsky, who retired following the World Cup. One of the players expected to take to the pitch is star midfielder Pavel Nedved, but there are rumours the game may be his final international cap. Nedved, who plays for Juventus Turin, has scheduled a press conference on Tuesday to announce whether he will stay on with the national side after this week or make Wednesday his final appearance.

The Green Party says its chief aim in the autumn Senate elections is to prevent the two strongest parties - the Civic and Social Democrats - from gaining a constitutional majority in the upper chamber. As the two strongest parties move towards reaching a deal on a new government the Greens and the Christian Democrats fear that they will join forces to push through an amendment to the election law which would threaten the existence of smaller parties. The Greens will run in 19 out of the 27 contested constituencies and they have offered to support Christian Democrat candidates in other constituencies. Constitutional amendments require a three-fifth majority in both chambers.