Czech president to name new government tomorrow

PRAGUE, Jan 8 (Reuters) Czech President Vaclav Klaus said today he would name a new government led by rightist Prime Minister Mirek Topolanek tomorrow, in a possible step toward ending a seven-month crisis after an inconclusive election in June.

Topolanek has formed a three-party coalition with the centrist Christian Democrats, the Green Party and his own rightist Civic Democrats. But the grouping has only 100 seats in the 200-seat parliament.

Klaus had been reluctant to appoint the government saying it would not be stable since it must rely on the vote of at least one rebel deputy from the left, which controls the other 100 seats in the lower house.

He was under no time frame to name a new cabinet, but investors and industrial leaders have been concerned the stalemate could drag out and slow the implementation of economic reforms in healthcare, public spending and pensions.

A statement from Klaus said he would name the new government proposed by Topolanek at a ceremony at Prague Castle at 11:00 a m (1530 IST).

Topolanek has been under heavy pressure from his party to strike a deal on a stable government after his first attempt -- a minority Civic Democrat-only administration -- lost a confidence vote in October.

While the Civic Democrat leadership has voiced unequivocal support for the coalition government, internal differences over the agenda and make-up of the coalition cabinet proposed by Topolanek have been brewing.

In response, Topolanek has said he will offer his resignation if the coalition fails to win a confidence vote, which must be called within 30 days of the government being officially named by Klaus.

If Topolanek's administration fails to win a confidence vote, it will be the parliamentary speaker who chooses the third prime minister.

The current Social Democrat speaker, however, has pledged to step down before the third attempt, and electing a new one may be difficult in the hung parliament unless there is a wider deal among the main parties. If three successive attempts to form a government fail, the president can call early elections.

REUTERS AB VV1540