UPDATE 1-Czech rebel MP says to remain independent

(recasts with quotes from rebel MP, analyst)

By Alan Crosby

PRAGUE, Oct 27 (Reuters) - A rebel Czech parliamentarian said on Friday he would continue to vote with the Social Democrats on some key issues, but would sit as an independent, a move that could shift the balance of power in parliament.

Michal Pohanka quit the party this week under pressure from parliamentary party chief Michal Hasek, who urged him to resign after a television report linked him with people charged with fraud. Pohanka has called the report an unfounded attack.

A deputy's defection is very important in the Czech lower house, where leftist and centre-right camps have held 100 seats each since elections in June.

Analysts said the affair had weakened the leftist Social Democrats, though the rightist minority government has already failed in a confidence vote.

Pohanka met Social Democrat leader Jiri Paroubek on Friday. He did not speak to journalists after the meeting but told the news Web site aktualne.cz he would sit as an independent.

"The party chairman (Paroubek) and I agreed that when it comes to programme issues, there's no need for me to vote differently than the Social Democrats," he said.

"But I would like to stress that I will be an independent deputy. When it comes to supporting any particular government, well, we did not discuss that."

Paroubek, who had urged Pohanka to give up his mandate -- which would give the party the right to appoint another member to the seat -- said the affair had been a misunderstanding.

"Pohanka will be an independent who works together with the Social Democrats," he said. "We agreed that ... a majority of the time Michal Pohanka will vote the same as members of the Social Democrats."

The right-wing Civic Democrat government, which lost a confidence vote earlier this month, has said it will not try to enlist Pohanka and still wants early elections next year.

The Social Democrats oppose early polls. They have in the past demanded time to find 101 votes in the lower house to form a cabinet and Pohanka's departure has weakened them. The Civic Democrats rejected their proposal of a grand coalition.

"If Paroubek has been looking at the possibility of forming a coalition government with 101, or maybe 102 members, this has lowered his odds and negotiating position," said political analyst Vladimira Dvorakova.

President Vaclav Klaus is expected to announce a candidate for prime minister in the next few days. He may try to appoint a technocrat prime minister and government for a limited period before an early election. ((Reporting by Alan Crosby, editing by Tim Pearce; prague.newsroom@reuters.com; Reuters Messaging: alan.crosby.reuters.com@reuters.net; +420 224 190 477))

Keywords: CZECH POLITICS