UPDATE 1-Czech PM makes fresh bid to form centre-right govt

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By Petra Vodstrcilova

The Czech Civic Democrats launched an attempt to revive a three-party centre-right coalition on Friday, seeking the backing of left-wing defectors to end a stalemate dating back six months.

The central European country has been without a stable government since an election in June gave both centre-right and left-wing forces 100 seats each in parliament.

Prime Minister Mirek Topolanek, head of the right-wing Civic Democrats, said the mooted government including the centrist Christian Democrats and the Green Party would tie its fate to a package of economic reforms.

"The government which could emerge would submit to the parliament a reform package together with the confidence vote," he told a news conference.

Czechs have grown increasingly angry over the political crisis. However, the stalemate has had little impact so far on record strong economic growth, and the crown currency rose to all-time highs against the euro this week.

The Civic Democrats have been pushing for the introduction of a flat tax and a revamp of the social security and pension systems.

"In my opinion this is our last shot at a reform-minded government," Topolanek said. A failure would trigger talks on a date for an early election.

Earlier this week, the Civic Democrats pulled out of talks on a broad coalition with the leftist Social Democrats and the Christian Democrats.

Civic Democrat deputy chairman Petr Necas said he expected fresh talks on the centre-right coalition to last several days.

The coalition would have just 100 seats in parliament, and would have to rely on the support of defectors from the opposition Social Democrat faction to survive.

Two members of the Social Democrat caucus have already quit the faction, and one of them did not rule out supporting a centre-right administration in a confidence vote.

One problem for Topolanek is that new Christian Democrat chief Jiri Cunek has repeatedly ruled out taking part in a government dependent on rebels.

On Friday, Cunek said after talks with the Civic Democrats that the issue on where the cabinet would find support was put aside for the time being.

All three parties' chiefs are scheduled to continue negotiations on Sunday afternoon.

[PRAGUE/Reuters/Finance.cz]