RPT-Czech president, PM in rift over proposed govt

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By Jan Korselt and Jan Lopatka

Czech President Vaclav Klaus and rightist Prime Minister Mirek Topolanek clashed on Thursday over a proposed coalition government, deepening a political crisis that began after general election in June.

Topolanek's rightist Civic Democrats, the centrist Christian Democrats and the Green Party reached a deal earlier in the day to form a government, and handed the proposal to Klaus.

The three parties have just 100 seats in the 200-seat lower house, and would need to win the support of rebels from the leftist Social Democratic Party to survive a confidence vote required by the constitution.

But Klaus, who has opposed appointing a government that would rely on rebel deputies, refused to accept Topolanek's list of ministers and instead asked him to strike a deal that includes the leftists.

"I have to say that I differ with the prime minister in opinion on the method of pushing through the government which he aims to take," Klaus told journalists after the meeting.

Klaus said if the parties could not reach a deal on broader support for the government, he would like to see a quick move toward early elections, and feared that Topolanek's plan would not achieve this.

Topolanek said he did not understand Klaus's concerns. He said his proposed cabinet was the best way out of the crisis as it would bring about needed reforms to public spending, and pension, social and health care systems needed for adopting the euro currency after 2010.

"This government is looking at a reform programme. If it is not able to realise this, the coalition agreement describes how ... to achieve early elections," Topolanek said, adding he hoped Klaus would appoint the cabinet as soon as possible.

The country has seen its strong economy ride out the current political turmoil without a hiccup and the crown currency has jumped to record highs against the euro.

LEFTISTS WANT IN

Klaus is under no time limit to appoint the government, but analysts said he was bound by the constitution to eventually accept Topolanek's proposed line-up.

"Klaus's step is against the constitution. He must appoint the government, he has no other option, that is clear according to the constitution," said political analyst Josef Mlejnek Jr.

"It looks like we're in for a nice skirmish now."

He said that Klaus perhaps hopes that an agreement between the Social Democrats and the Civic Democrats will include a pledge to re-elect him in 2008. The Czech president is elected by parliament, not the people.

At a separate news conference, opposition Social Democrat chief Jiri Paroubek said that his party is still ready to find a compromise with Topolanek, but he would not support the current three-party coalition.

"They (the right-wing) should start negotiating on a government of national unity, which would be based above all on the cooperation of the two biggest parties," he said. ((Writing by Alan Crosby, editing by ; prague.newsroom@reuters.com; Reuters Messaging: alan.crosby.reuters.com@reuters.net; +420 224 190 477))

Keywords: CZECH POLITICS/

[PRAGUE/Reuters/Finance.cz]