President sanctions talks on centre-right coalition, but stops short of naming prime minister designate

Three Czech centre-right parties - the Civic Democrats, TOP 09 and the centrist Public Affairs – on Wednesday signed an agreement to create a centre-right coalition of fiscal responsibility. The move was sanctioned by President Václav Klaus, who has so far held off from naming a prime minister designate.

Petr Nečas, photo: CTK

Events have moved fast following an election in which the winner was left empty handed and the 3 runners-up with a realistic chance of forming the country’s next government. Amidst speculation as to who the president would name prime minister, the three centre-right parties swiftly clinched a deal – signing a declaration stating their intention to create what they called a government of “fiscal responsibility, rule of law and fight against corruption”. On Wednesday they created joint teams to hammer out policies in several key areas including budget and taxes, health care and fighting corruption.

When President Klaus invited the acting leader of the Civic Democrats Petr Nečas for a meeting at Prague Castle on Thursday morning there was speculation that he would walk out as the country’s prime minister designate. He walked out alone, and if he was disappointed with the outcome of the meeting he wasn’t letting on.

“I am not in the least bit disappointed. I achieved what I set out to do at this meeting. I informed the president in some detail about the way coalition talks are shaping up and expect the president will come to a decision in his own time –possibly on the grounds of this meeting. And then it may be that I will be invited back for another round of talks at Prague Castle.”

Although President Klaus has said that in his view a centre right coalition – with a comfortable majority in the lower house – is the only viable option for the Czech Republic, the coalition talks are likely to hit some snags.

Václav Klaus, Petr Nečas (right), photo: CTK

The Civic Democrats’ promise not to raise taxes clashes with the Public Affairs’ plan to raise corporate tax by 1 percent and increase the tax paid by high earners. Public Affairs’ policy on health reform and fighting corruption is also closer to the left-wing Social Democrats that to the two right-wing parties with whom it is planning to enter into government. Clearly one can expect plenty of wheeling and dealing on controversial issues and the leader of the talks Petr Nečas has made it clear that it may take weeks or months to forge an agreement.

“I am expecting intensive negotiations in the coming weeks and hope that we will have an agreement on the table within a month – at the most within two months of the general elections.”