(Repeats story published early today)
* New government will consist of non-politicians
* New government will complete EU presidency
* Elections most likely on Oct. 16-17
By Jan Korselt and Robert Mueller
PRAGUE, March 31 (Reuters) - Ousted Czech Prime Minister
Mirek Topolanek said on Tuesday his government would step down
before the end of the country's EU presidency in June and
technocracts would take over.
"So far we know the cabinet will leave earlier than at the
end of June, we are still discussing the date," Topolanek said
after talks between his three-party coalition and the opposition
Social Democrats.
"The (new) government must manage the completion of the
Czech presidency, which determines the type of people we are
looking for," he said.
The Czech Republic has been in political turmoil since a
no-confidence vote last week toppled the minority government.
Its collapse has undermined the republic's position as the
holder of the EU presidency, strengthened the role of
eurosceptic President Vaclav Klaus, and raised doubts about
ratification of the EU's Lisbon treaty.
Topolanek said the parties agreed on Tuesday to an
opposition demand for a new government of non-politicians to
lead the country.
"In the name of reaching wide political consensus we are
ready for the creation of a cabinet of non-partisans, with the
support of all democratic parties," he said.
Social Democrat chief Jiri Paroubek said the parties had
moved closer to a final agreement.
Chief Martin Bursik of a junior coalition party, the Greens,
said there was an agreement that most likely election date was
Oct. 16-17.
The Czech political crisis is the result of personal
rivalries and defections from the government camp over the past
months and has less to do with the global financial crisis that
felled governments in Hungary and Latvia.
The country has seen a drop of more than a fifth in
industrial output and exports, but its banks have been stable
and the currency recovered from losses earlier this year, thanks
to low overall debt and low exposure to foreign credit.
The crown currency firmed after news of the nearing an
agreement came out, and traded at 27.300 to the euro <EURCZK=>
in late domestic trading from 27.460 ahead of the news.
Showing a willingness to cooperate, the Social Democrats and
the coalition led by Topolanek's right-wing Civic Democrats gave
preliminary approval in parliament to opposition-sponsored
measures to help ease the impact of the global crisis.
None of the politicians involved in the government talks
were willing to reveal any names under consideration for the
prime minister or other cabinet members.
A failure of the main parties to reach agreement on a new
government now would open the room for President Klaus to
appoint a prime minister of his choice who could block the
approval of the EU's Lisbon treaty, which is meant to streamline
decision-making in the bloc.
(Writing by Jan Lopatka; Editing by Angus MacSwan)
