PRAGUE, May 30 (Reuters) - Three cost-cutting parties from the Czech centre-right look set to form a government following a decisive joint win in a weekend election over leftists who had promised to increase welfare and other social spending. Although the leftist Social Democrats won the most votes, the rightist Civic Democrats, the conservative TOP09, and the centrist Public Affairs parties won 118 of parliament's 200 seats and have begun negotiations on forming a coalition.
The parties broadly agree on a goal of balancing the budget in the next few years, introducing a second pillar to the pay-as-you-go pension scheme, creating a two-tier system of state healthcare coverage, and introducing anti-graft reforms.
There are differences in their approaches to euro entry, and they may bicker over individual policies.
"The devil is in the details," TOP09 leader Karel Schwarzenberg said on Sunday.
BUDGET - The parties agree on the need for quick action to cut the budget deficit, which is projected at 5.3 percent of gross domestic product (GDP) this year, through cuts in non-descretionary spending which makes up more than 80 percent of all state outlays.
The Civic Democrats want to cut the deficit to 4.0-4.5 percent of GDP next year and to under 3 percent of GDP by 2012. They want a balanced budget by 2017.
They have pledged not to raise taxes but cut spending at ministries, reduce social costs, crack down on welfare abuse, and push people off dole lists if they refuse work or training.
TOP09 wants a rule that budgets should be balanced when growth hits 2 percent. Public Affairs wants a balanced budget by 2014 and a 10 percent cut the number of public clerks.
EURO - The smaller parties, TOP09 and Public Affairs, both want to set a date for adopting the euro currency.
But Civic Democrat leader Petr Necas, the likely prime minister in a centre-right cabinet, has said that the Czechs should join the single currency only once they have fully converged with richer western EU states. He has said it makes no sense to set any entry target.
PENSIONS - All parties are in favour of reforming the one-size-fits-all, pay-as-you-go pension system and move to a three-pillar system that includes private savings accounts and voluntary savings.
The Civic Democrats and Public Affairs recommend raising the retirement age, which under current legislation will rise to a minimum of 65 for those retiring in 2030.
HEALTHCARE - All three parties agree that comprehensive state healthcare should be divided into basic and higher-standard coverage.
The Civic Democrats and Public Affairs want to introduce private health insurance for above-standard care.
Public Affairs wants to split the nation's hospitals into a basic network and others that can be privatised.
TOP09 wants to gradually raise the proportion of medical treatment that people have to pay from their own pocket by 3 percentage points, from an average of 14 percent now.
EDUCATION - The Civic Democrats and TOP09 want to introduce tuition fees for universities now free for students. Public Affairs says university graduates whose salaries exceed the national average should pay back the costs of their education.
The Civic Democrats and TOP09 want to switch to a results rather than tenure-based pay system for teachers.
Public Affairs wants to introduce a minimum teacher salary and raise pay by 5,000 Czech crowns ($239) a month. It would pay for it by taking 10 billion crowns from defence spending.
FOREIGN POLICY - The Civic Democrats want to strengthen ties with the United States. They support the NATO mission in Afghanistan, and plan to increase the number of Czech troops there. They back the Nabucco gas pipeline from the Middle East to lessen dependence on Russia.
TOP09 also stresses the importance of NATO membership and the transatlantic partnership but is more aligned with the European Union. Party leader Karel Schwarzenberg was foreign minister during the Czechs' 2009 EU presidency.
Public Affairs opposes Turkish membership in the EU, unlike the other two parties, and sees Washington as a key partner.
GRAFT - The Civic Democrats want to cut red tape that creates room for graft. It and TOP09 want firms participating in public procurement to have transparent ownership.
TOP09 wants all information about public orders published on the internet, and wants open tenders for top positions in state-held companies, including supervisory boards posts.
Public Affairs wants to set up a special anti-corruption court and prosecutor to handle state administration graft and serious economic crimes. It also wants to introduce "corruption resistance" tests for politicians and state officials.
