* Political leaders agree to find way to hold quick election
* Court to hold hearing on election complaint Sept. 10
* Legal complaint has put Oct. 9-10 poll in doubt
(Adds election possible in November, updates crown)
By Jana Mlcochova
PRAGUE, Sept 2 (Reuters) - Czech political leaders agreed on
Wednesday to take action to secure a quick election after a
Constitutional Court decision threw into doubt polls planned for
Oct. 9-10.
The planned early election was due to install a new
government with a stronger mandate to tackle the impact of a
recession on jobs and the spiralling budget deficit.
President Vaclav Klaus, Prime Minister Jan Fischer and the
heads of parliamentary parties agreed on Wednesday to form a
working group to prepare options to change the constitution so
as to secure a quick election, Klaus said.
"We will all try to find a way for the election to happen
either on the originally proposed date or as close to this date
as possible," Klaus told reporters.
The main parties had agreed to a one-off change to the
constitution to cut the parliament term short after a
no-confidence vote brought down the previous centre-right
cabinet in March. A weak interim government has been running the
country ever since.
The move had wide support but an independent deputy
challenged it on the grounds he had the right to serve his full
four-year term, ending in mid-2010.
The Constitutional Court on Tuesday froze the decision to
call the election until it had ruled on the challenge.
Political leaders agreed at a meeting with Klaus on
Wednesday they would try to permanently change the constitution
to allow the lower chamber of parliament to dissolve itself.
This would allow for a quick election regardless of the court
ruling.
News agency CTK said the plan under preparation by the
parties could lead to the election being held in early November.
Meanwhile, the court said on Wednesday it would hold a
hearing on the complaint on Sept. 10, but it was not clear if it
would deliver a ruling on that day.
If judges reach a decision right away to throw out the
complaint, the October election date could still be realistic,
the Interior Ministry said.
The Czech Republic, an EU member country of 10.5 million,
has gone through a string of political crises and weak
government following tight election results in the past dozen
years, but still managed to lure foreign investors and narrow
the gap behind wealthier western Europe.
But analysts said any delay to the election would be
negative for markets, as it would delay measures to halt a fast
rise in the budget deficit, seen at over 7 percent of gross
domestic product next year.
The Czech Republic has escaped the financial meltdown seen
in fellow central European EU member Hungary, but politicians
and analysts have said that lack of quick action on the budget
could lead to serious trouble in state finances in the future.
The Czech crown dipped slightly after the court decision
late on Tuesday, but traders said the move was in line with
higher risk aversion toward the entire region. It traded 0.1
percent down in late afternoon at 25.703 to the euro <EURCZK=>.
