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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Czech government loses confidence vote Tue Mar 24, 2009 4:46pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Jana Mlcohova and Jan Lopatka PRAGUE (Reuters) - Czech Prime Minister Mirek Topolanek's minority center-right government lost a vote of confidence on Tuesday, forcing it out of office and undermining its role as EU president during the global economic downturn. Topolanek said he was ready to resign, although the opposition Social Democrats said his government could stay on until Prague hands over the European Union's six-month's rotating presidency to Sweden at the end of June. "This government can complete the presidency," said Jiri Paroubek, leader of the Social Democrats. It was the third government collapse in eastern Europe this year after the leaders of Latvia and Hungary stepped down when their economies were hit by the financial crisis -- although Topolanek's defeat was more to do with domestic wrangling. The Czech Republic has been less affected than some of its eastern European peers by the financial crisis, and despite the political turmoil the crown currency has held broadly steady after recovering from a drop earlier this year. The crown dipped 0.7 percent to 27.17 to the euro after the vote. The three-party ruling coalition, weak since its 2007 appointment due to a lack of a majority, lost by one vote after defectors from its camp supported the left-wing opposition. The opposition has blamed the government for economic mismanagement and criticized reforms including a flat income tax, fees for doctor visits and budget cuts. Paroubek said a government of non-partisan experts could be formed in the summer to lead the country to early polls in the autumn or next spring. Regular polls are due in mid-2010. Topolanek said early polls should be held in the summer if there was no agreement on a new government. He said he wanted a fresh chance to form a new cabinet and would not support one of experts. LITTLE ROOM FOR MANOEUVRE Topolanek's ousting precedes a special EU summit with President Barack Obama on April 5 in Prague. The next step is now up to President Vaclav Klaus, who has an indefinite period to nominate a new government. Given the split parliament, it will be very difficult to form a new cabinet without an agreement of the main rivals, Toplanek's right-wing Civic Democrats and the Social Democrats. The Social Democrats lead opinion polls but their margin over Topolanek's Civic Democrats had narrowed to 4.5 percentage points in a survey released last week. The Social Democrats have promoted more tax-and-spend policies and rejected plans to reform the health sector. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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