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Economy / Czech Republic

Growing Debt Pile

January 2008 | Ratings Update

A second vote of no confidence in 2007 brought against the Civic Democrat (ODS)-led coalition government was defeated on December 5. Factors which prompted the vote included claims that Prime Minister Mirek Topolanek failed to adequately promote the reform agenda, as well as allegations that the First Deputy Prime Minister, Jiri Cunek, accepted bribes and improperly received welfare payments. Despite successfully quashing both the January 19 and December 5 no confidence votes, we believe that a further no confidence challenge is possible in 2008. The continued deadlock in parliament (with the government holding 100 of the 200 seats), combined with

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