Czech Civic Democrats consider new coalition plan

PRAGUE, Nov 28 (Reuters) - The Czech Civic Democrats said on Tuesday they were considering a proposal from their left-wing rivals to form a reform-minded coalition government, a deal that could end nearly six months of political deadlock.

An inconclusive June election handed 100 seats to leftists and another 100 to centrists and right-wing parties in the Czech Republic's lower house, causing paralysis in the European Union member state.

A minority cabinet of the right-wing Civic Democrats has already lost a confidence vote, and the party's attempt to form a four-party coalition with the leftist Social Democrats, centrist Greens and Christian Democrats failed on Sunday when the Social Democrats declined to join.

But Civic Democrat Vice-Chairman Petr Necas said his party was now mulling a proposal from the Social Democrats to form a cabinet of just three parties -- excluding the Greens -- which would last at least three years and carry out reforms allowing euro adoption by 2012.

Civic Democrat Vice-Chairman Petr Necas said that while still vague, the new proposal appeared to signal a dramatic change in the Social Democrats' approach.

"So far their policy, before and after elections, had been based on rejecting any reforms. Suddenly they are coming with a willingness to undertake certain reforms," Necas said after a meeting of his party leadership.

He added he expected a new round of talks with the Social Democrats could take place during a parliamentary session starting later on Tuesday.

"The basis for the functioning of the government, shorter or longer term, is the question of reforms. The deeper the reforms, the longer the functioning of a government can be theoretically considered," Necas said, adding it was still unlikely a government could serve the full term until 2010.

The Czech Republic has benefited from fast economic growth, but needs to reform its health, pension and social systems to slash deepening budget deficits which have made it impossible to join the euro zone by 2010 as previously planned. ((Reporting by Jan Lopatka, editing by Laura MacInnis; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

Keywords: CZECH POLITICS/