Czech President appoints adviser for PM in move likely to trigger early elections

By bne IntelliNews June 26, 2013

Czech President Milos Zeman appointed on June 25 his economic adviser Jiri Rusnok as the country’s new prime minister in an expected move that will likely trigger early elections as the new cabinet is not expected to win a vote of confidence in parliament.

Rusnok, a former leftish finance and industry minister, will replace the three-party coalition cabinet of Petr Necas who resigned last week over a corruption and spying scandal. The outgoing centre-right coalition comprising Necas’ Civic Democrats (ODS), TOP 09 and LIDEM wanted to form a new government to rule the country until scheduled general elections in May 2014 and nominated lower house speaker Miroslava Nemcova to be country’s first woman prime minister. The leftish opposition, on the other hand, wants to dissolve the parliament and call early elections. The major opposition party, Social Democrats (CSSD) is tipped to win the next elections as it holds a comfortable lead of more than 20% over the other parties. So it is unlikely that the cabinet of Rusnok wins a vote of confidence in parliament in order to stay in power until regular elections next year. A more probable variant will be for the opposition to secure the needed 120 votes in the 200-seat parliament to dissolve the parliament and force early elections likely in September.

Zeman, who has the sole right to appoint a prime minister according to the Czech constitution, said Rusnok’s government might either serve till early elections or through the end of the current parliament’s four-year term in mid-2014. As an economist and former finance minister Rusnok has the competence to prepare the country’s budget for next year, Zeman said. The government is due to submit to parliament the state budget for 2014 by end-2014.

The appointment of a caretaker cabinet is not expected to have a major effect on the market that is used to frequent cabinet reshuffles as in the past decade it saw seven governments come and go. But analysts predict that it may lead to delay in a EUR 12bn project for the expansion of Temelin nuclear plant operated by state-owned power group CEZ. The company wants to select a supplier for two more reactors at Temelin by September 2013.

The current political crisis in the Czech Republic has erupted earlier this month when Necas’ closest aide along with seven others, including former lawmakers and the current and ex heads of military intelligence, were charged with bribery and abuse of power in an unprecedented anti-graft operation. The scandal forced Necas to step down on June 17.

Related Articles

Poland isolated again as it threatens to block EU declaration

Poland will not sign the Rome Declaration if its demands for moulding the EU’s future are not reflected in the document, Prime Minister Beata Szydlo threatened on March 23. The statement could ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Poland struggles in bid to oust Tusk

The Polish government spent March 6 canvassing for support for its alternative candidate for the European Council presidency to compatriot Donald Tusk. However, it met little success, even in its own ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss