Czech Deputies Begin No-confidence Debate

PRAGUE (Reuters) - The Czech lower house on Tuesday began debate on a motion of no confidence in the new Social Democratic government, the first leftist administration since the fall of communism. Prime Minister Miloš Zeman`s minority government, installe

d last month after topping a June general election, is widely expected to survive the vote thanks to a pact with ex-premier Václav Klaus`s opposition Civic Democratic Party (ODS). More than 30 deputies signed to speak ahead of the vote, which is not expected until Wednesday. Opening the debate, Zeman took a shot at the previous centre-right government led by Klaus, which collapsed last November over a party financing scandal, saying the previous system concentrated too much on the power elite. Borrowing from British Prime Minister Tony Blair, Zeman said he wanted to empower individuals by creating "a knowledge society" with solidarity for the poor, elderly and infirm. However with centre-right parties holding 102 of the 200 seats in the house, and all parties focused on membership of the European Union, the new government was expected to be largely pragmatic and market-friendly. Klaus, whose ODS party placed second in the vote held two years early following the collapse of his government, told the house it would hold to its pact with arch-rival Zeman which should allow him to survive the confidence vote. Most, if not all, of the 63 ODS deputies are expected to leave the chamber for the vote, allowing the Social Democrats with just 74 seats to muster the necessary simple majority of those remaining in the house. However Klaus poured scorn on the government programme, calling it "propagandist and populist" and said his party would not permit "unreasonable or unacceptable" measures to be approved. The Social Democrats` programme, released earlier in August, calls for long-term balanced budgets in all public financing and completion of the privatisation of state-controlled banks - all reforms recommended by economists and endorsed by centre-right parties. Analysts said the programme, which did not contain specific legislation, still leaves open the chance the cabinet will deliver a deficit 1999 state budget in September, despite Finance Minister Ivo Svoboda`s stated wish to do otherwise. The Social Democrats also call for a strengthened watchdog over the capital markets, a "clean hands" campaign to root out financial corruption and an overhaul of the tax code with no increases in income tax rates. However the programme also includes more interventionist polices which prompted Klaus and other opposition leaders to brand it a return to socialism. These include state support for exporters, a pro-active industrial policy to help revive struggling industries, as well as the financing of pensions with public funds outside the budget.

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