Czech PM says will let cabinet decide resignation

PRAGUE, July 2: Czech Prime Minister Jiri Paroubek said today he will let his cabinet decide if he should follow through on his planned resignation next week, a month after an inconclusive general election.

The leftist Social Democrat Paroubek said earlier this week he would step down on July 3 after an inconclusive June 2-3 election where the rightist Civic Democrats took the most votes, but not a parliamentary majority.

Paroubek and rightist President Vaclav Klaus clashed on Friday over the move, which Klaus called irresponsible given the current stalemate in parliament, where the Civic Democrats and their two centrist allies control 100 seats, the same number as the leftist Social Democrats and far-left Communists.

''If I see that a majority of ministers think we should continue on (at a meeting on Monday), then I will not submit my resignation,'' Paroubek, whose party came second in the election, said during a live television interview on public Czech TV.

Paroubek's resignation would automatically trigger the fall of the government, but Klaus said that with no way of being sure a new government could take over, Paroubek's resignation would mean the previous government was walking away from its responsibilities.

On Thursday the coalition failed to push through their candidate for the position of parliamentary speaker in a vote, and weeks or even months of negotiations may be needed to break the deadlock.

By law the government must resign when a new parliament elects its leadership, and this must happen first before a confidence vote on a new government can be held.

Financial markets have shrugged off the politcal turmoil so far because of the strong economy. However, some analysts fear that a prolonged dispute will delay key fiscal decisions needed if there is any chance of sticking to the government's target of adopting the euro currency in 2010.

REUTERS