Czechs head to polls to elect new parliament and end political stalemate

By bne IntelliNews October 25, 2013

Czechs are voting on October 25-26 in early general elections hoping to end a political stalemate that has crippled policy making since June when the former centre-right government collapsed.

Tired of austerity and corruption scandals that toppled the rightist parties from power in the summer, voters in the central European country will hand a victory to leftwingers with the main centre-left Social Democratic Party (CSSD) poised to win the early vote. Yet, latest opinion polls showed a dip in voter support for CSSD meaning that the party will most certainly need to rely on one or two partners in the future parliament to govern.

The latest poll by CVVM showed that CSSD would win 26% of the votes, followed by the far-left Communist Party of Bohemia and Moravia (KSCM) with 18%. Third ranked newcomer centrist Action of Dissatisfied Citizens (ANO) set up by Slovak-born billionaire Andrej Babis with a backing of 16.5%. Former ruling rightist parties TOP 09 and Civic Democrats (ODS) follow with 9% and 6.5%. The CVVM poll showed that two more parties have the chance to cross the 5% threshold to win seats in the future parliament -Christian Democrats (KDU-CSL) and the Dawn of Direct Democracy (Usvit) of Czech-Japanese entrepreneur and senator Tomio Okamura.

CSSD has said it will seek to form a minority government backed by, but not including, KSCM. This could hand the Communists a share in power for the first time after the fall of communism in 1989. Yet if the two fail to garner a majority in parliament, another partner will be needed. Protracted post-election negotiations and uncertainty about future government policies will delay measures needed to revive the economy, cast doubt over next year’s budget and eventually deter foreign investors who value the country's relative stability.

The Czech Republic emerged in Q2 from an 18-month long recession fuelled by the austerity policies of the former rightist government and the eurozone’s debt crisis. CSSD has pledged to boost public spending to kick-start the economy.

 

Related Articles

CEZ ignores Czech finance minister and re-elects CEO

The supervisory board at Czech power group CEZ ignored pressure from the finance ministry to dump the current management, local media report. Finance Minister Andrej Babis has been accumulating ... more

Japan’s Asahi buys a huge round in Central Europe

Asahi has beaten a host of regional heavyweights in the race to buy SABMiller’s Central and Eastern European beer brands, the Japanese brewer announced on December 13. The Asian giant said it ... more

Tension cools as EU approves Czech renewables support

The European Commission approved on November 28 the Czech Republic’s support scheme for renewable energy projects. The move should put several years of recurring uncertainty over the state payments ... 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