Czech PM starts talks with eye on early elections

By Alan Crosby

PRAGUE, Nov 22 (Reuters) - Czech rightist Prime Minister Mirek Topolanek on Wednesday launched talks on forming a government that would end a five-month parliamentary stalemate and move the country towards early elections.

Centre-right and leftist parties have been locked in a bitter battle since a June general election left each side with 100 seats in the lower house of parliament.

The deadlock has yet to hit the the EU member state's booming economy, but it has stopped it from having a stable, strong government needed to implement spending reforms to prepare for euro adoption sometime after 2010.

"The first round of meetings ... will look at the possibility of early elections and that of an early election next year," Topolanek told journalists, adding the first round of talks would end on Wedneday.

A second round of talks on Thursday would examine whether progress could made on policy issues.

Topolanek was appointed prime minister by President Vaclav Klaus immediately after the June vote, and subsequently formed a minority government that failed at its first hurdle -- a constitutionally mandated confidence vote -- in October.

Klaus picked Topolanek again to try and form a government after his party dominated mid-October Senate and municipal elections.

This time Topolanek, who has repeatedly said he wants fresh elections as soon as possible, is looking to form a broad coalition with bitter leftist rivals the Social Democrats, the centrist Christian Democrats, and possibly even the Green Party.

But the Social Democrats, who have lost ground in opinion polls, do not want elections until 2008 at the earliest. The same goes for the Christian Democrats while the Greens support a spring 2007 vote.

Analysts said the talks would be difficult, given that both sides would have to make concessions.

"I think the Christian Democrats will act as a buffer (in a broad coalition)," said political scientist Bohumil Dolezal, who added that he thought the parties would reach a deal on forming a government.

If three governments fail to win a confidence vote, Klaus may call elections immediately, something the Social Democrats want to avoid since they have slid in opinion polls since the June vote. ((Reporting by Alan Crosby; editing by Giles Elgood; prague.newsroom@reuters.com; Reuters Messaging: alan.crosby.reuters.com@reuters.net; +420 224 190 477))

Keywords: CZECH POLITICS