* Klaus seeks quick solution to political crisis
* Says will appoint govt based on wide political agreement
(Adds Klaus, Topolanek resignation)
By Jan Korselt
PRAGUE, March 26 (Reuters) - Czech President Vaclav Klaus
accepted Prime Minister Mirek Topolanek's resignation on
Thursday and said a new majority-backed cabinet must be formed
soon to tackle the economic crisis and the Czech EU presidency.
Topolanek quit after several government defectors joined
forces with the leftist opposition in a no-confidence vote on
Tuesday, toppling the minority cabinet amid a severe economic
downturn and halfway through the six-month EU leadership term.
The eurosceptic Klaus has the sole right to appoint the new
prime minister and until the nominee forms his cabinet, the old
centre-right three-party administration will remain in office.
The main parties have said a new cabinet should lead the
country toward an early election.
"The solution must be quick...due to the economic crisis and
the EU presidency, which must be run by a fully functioning
government," Klaus told reporters.
That statement went against suggestions by both government
and opposition leaders that Topolanek's team might stay on, even
after the resignation, until the end of the presidency in June.
Analysts have said that changing the government during the
presidency could weaken its clout, as new minsters would face a
tough time leading the EU agenda without prior experience.
The political crisis has had a limited impact on financial
markets. The crown dipped after the no-confidence vote but came
back to trade 27.10 to the euro on Thursday, almost flat from
before the vote.
The Czech government fall follows collapses of cabinets in
Latvia and Hungary, triggered by the financial crisis. It has
had a small impact in the Czech Republic and the government was
felled by personal rivalries in Topolanek's right-wing Civic
Democrats and within a junior coalition partner, the Greens.
MAJORITY SUPPORT
Klaus said any government would have to be based on the
support of political parties, and not defectors -- a clear
indication he would not back a recreation of Topolanek's
three-party minority cabinet, which was initially backed by two
rebels from opposition ranks.
"I am ready to appoint only a government that will be based
on a political agreement in the lower house," Klaus said.
He said he could reappoint Topolanek, or name someone else
with the ability to secure the required majority backing.
Given the parties' power in parliament, it will be very
difficult to form a majority-backed government without an
agreement between the two biggest parties, Civic Democrats and
the opposition Social Democrats.
So far, the only common ground appears to be a preference
for an election before the next scheduled polls in mid-2010.
The constitution makes it hard to organise early elections,
and analysts have predicted a protracted political stalemate.
The Social Democrats want a government of non-partisan
experts until early elections this autumn or spring next year,
while the Civic Democrats insist that only Topolanek can lead
the new cabinet, and election should be called in the summer.
"I am also in favour of speed," Topolanek said after meeting
Klaus. "But not just speed of forming a cabinet but also speed
of arranging an early election as the only way out."
The government stalemate has cast shadow over the
ratification of the EU's Lisbon treaty, meant to streamline
decision-making in the bloc, which has grown from 15 to 27
members in the past five years.
It has been approved in most European countries but has been
stuck in the Czech upper house, the Senate, where many Civic
Democrats -- cheered on by Klaus -- oppose it.
Deputy Prime Minister Alexandr Vondra said on Wednesday it
would be tougher to convince them to support the treaty after
the government collapse.
(Writing by Jan Lopatka; editing by Jon Boyle)
