Dead Heat

BMI View: The Czech parliamentary elections have thrown up a tie between the leftist and rightist parties, making it difficult for any to form a majority government. We expect a tricky period of political wrangling to follow, and are not optimistic of anything but a weak government emerging from it. Whilst the risks to the economy are slight in the short-term, important reforms for the long-term sustainability of public finances will be difficult given the even split in parliament.

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