Czech MPs oust government over economy

The Czech government collapsed on Tuesday night after losing a vote of confidence over its handling of the economic crisis.

The 101-96 vote marks the end of the coalition government of Mirek Topolanek, the centre-right prime minister, as well as the effective conclusion of the already bumpy and crisis-ridden Czech presidency of the European Union, which formally expires on June 30. The vote comes ahead of a visit to Prague next month by Barack Obama, US president.

“How can a government which has no support in the country be able to lead the European Union?” said Jiri Pehe, a Prague-based political scientist.

Mr Topolanek said he planned to resign after returning from a trip to Brussels. Jiri Paroubek, the leader of the opposition Social Democrats, has said that he will push for fresh elections only after the Czech Republic’s current presidency of the European Union expires.

The EU tried to put the best face possible on the embarrassing failure of the government leading the Union, issuing a statement that said: “It is for the Czech Republic’s democratic process under the constitution to resolve the domestic political issues; the Commission is confident that this is done in a way which ensures the full functioning of the council presidency.”

The unexpected fall of Mr Topolanek’s government adds strength to the French argument that the presidency of a 27-member union that forms the world’s largest economy is unsuited for smaller and ill-prepared countries.

Mr Topolanek, facing the fifth vote of confidence in his third year as prime minister, was unable to win over enough independent MPs to save his government.

The initiative now passes to Vaclav Klaus, the euro-sceptic Czech president, who will have to name a caretaker administration to govern the country. If three attempts to form a new government fail, then new elections are called.

The difficulty in forcing new elections raises the possibility that a technocratic government will limp along in power until the next election, set for June 2010.

The opposition Social Democrats currently lead Mr Topolanek’s Civic Democrats (ODS) in opinion polls.

That would leave Prague ill-prepared to deal with the fall-out from the economic downturn, which is hitting the export-orientated Czech economy with increasing force. In a recent interview with the Financial Times, Zdenek Tuma, the governor of the Czech central bank, said the economy could shrink by as much as 2 per cent this year if the situation did not improve in western Europe.

Mr Topolanek had resisted calls to increase spending, arguing that the government did not have the wherewithal to bail the country out of the recession. However, that approach was unpopular with the left-leaning Social Democrats, and helped galvanise opposition.

The final straw was a domestic political scandal relating to accusations of inappropriate pressure to force a television station to stop a story criticising an opposition MP who had joined the government side.

It was a huge embarrassment for Mirek Topolanek, the Czech prime minister, just halfway through the country’s presidency of the European Union and ahead of a visit next month by Barack Obama, the US president, to Prague.

Mr Topolanek said he would resign after returning from a trip to Brussels.

The European Commission said it believed the Czech Republic could continue to hold and run the rotating EU presidency. Its term – which has been bumpy and beset by various crises – is due to finish in June. “It is for the Czech Republic’s democratic process under the constitution to resolve the domestic political issues; the Commission is confident that this will be done in a way which ensures the full functioning of the Council presidency,” the office of José Manuel Barroso, Commission president, said.

The timing is unfortunate given that there is significant legislation in the pipeline in Brussels – some in response to the financial and economic crisis.

Officials would like to see texts finalised in negotiations between member states and lawmakers before the European parliament breaks up for elections in June, and the presidency often plays a key role in this process.

The government fell after the Social Democratic opposition managed to galvanise support over the government’s management of the economic crisis.

The collapse came days after Ferenc Gyurcsany, Hungary’s prime minister, tendered his resignation over his government’s handling of the financial crisis.

The Czech government lost the vote by 101-96 in the 200-member parliament. Mr Topolanek has seen a steady ebbing of his parliamentary support since coming to power in 2006 following elections that resulted in a hung parliament. He could only count on the support of 96 MPs and was unable to rally rebel members of the Green party, a minority member of the governing coalition.

Jiri Paroubek, the leader of the opposition Social Democrats, has said that he will only push for fresh elections after the Czech Republic’s presidency of the EU expires.

Vaclav Klaus, the country’s eurosceptic president, now holds the balance of power and will get to name a new government leader.

The Czech Republic has seen a rapid deterioration of its export-dependent economy, with the central bank governor recently predicting that the economy could shrink by as much as 2 per cent this year.

Mr Topolanek had survived four previous motions of no confidence in his government.