PRAGUE (Reuters) - Czech premier-designate Josef Tošovský will face tough economic challenges early next year but is unlikely to make any radical policy changes ahead of premature elections, analysts said on Wednesday. President Václav Havel said on Tuesday he would name 47-year-old central bank governor Tošovský as prime minister on Wednesday, adding his cabinet would probably be short-lived. Outgoing Prime Minister Václav Klaus and his three-party centre-right coalition cabinet resigned on November 30 over a party financing scandal. The crown and shares, which fell sharply after Klaus resigned but have since recovered, strengthened on Wednesday on Tošovský's nomination, dealers said. The Czech Republic has long been seen as a reform leader in post-Communist Eastern Europe but its image has been tarnished over the government's handling of a severe economic downturn. Tošovský, central bank chief since the 1989 fall of Communism, has championed anti-inflation policies and has resisted persistent calls from the government to ease monetary policy for the sake of economic growth. Value added tax on energy and fuel will rise to 22 percent from five percent from January 1 and excise on cigarettes and alcohol will rise, moves analysts say will be inflationary. The Organisation for Economic Cooperation and Development (OECD) said this week that economic growth would remain weak next year and said that unless measures announced in two austerity packages earlier this year were implemented soon, pressure on the crown could grow again. Experts see Tošovský pushing on with the outgoing government's efforts to privatise big state-held stakes in three commercial banks and power distribution companies. However, it would be very difficult for him to implement any policies opposed by the main opposition party, the Social Democrats, who are keen for early polls. Tošovský's room to make policy would depend on which parties joined the cabinet. That remains unclear. Havel originally asked the old three-party coalition, led by outgoing Prime Minister Václav Klaus, to form a new cabinet. However, Klaus's ODS, the biggest party in the coalition and in parliament has yet to say whether it will participate in a new government while Christian Democrat leader Josef Lux has said it would be difficult for his party to be in any government that included the ODS. Tošovský's nomination, after talks among the parties led by Lux, was welcomed by most political leaders. Social Democrat leader Miloš Zeman said he had no objections to Tošovský's appointment if early polls were called. An opinion poll by state-funded IVVM on Wednesday gave the Social democrats 27 percent voter support against 17 for the ODS. Many analysts believe early elections would produce a government of Social Democrats and Christian Democrats.