Identifier
Created
Classification
Origin
06PRAGUE1075
2006-09-05 11:11:00
CONFIDENTIAL
Embassy Prague
Cable title:  

CONSERVATIVE GOVERNMENT TAKES POWER IN PRAGUE -

Tags:  PREL PGOV EZ 
pdf how-to read a cable
VZCZCXRO1052
OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHPG #1075/01 2481111
ZNY CCCCC ZZH
O 051111Z SEP 06
FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7911
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 03 PRAGUE 001075 

SIPDIS

SIPDIS

STATE FOR EUR/NCE

E.O. 12958: DECL: 09/05/2015
TAGS: PREL PGOV EZ
SUBJECT: CONSERVATIVE GOVERNMENT TAKES POWER IN PRAGUE -
BUT FOR HOW LONG?

REF: PRAGUE 1074

Classified By: Political-Economic Counselor Michael Dodman for reasons
1.4 b+d

C O N F I D E N T I A L SECTION 01 OF 03 PRAGUE 001075

SIPDIS

SIPDIS

STATE FOR EUR/NCE

E.O. 12958: DECL: 09/05/2015
TAGS: PREL PGOV EZ
SUBJECT: CONSERVATIVE GOVERNMENT TAKES POWER IN PRAGUE -
BUT FOR HOW LONG?

REF: PRAGUE 1074

Classified By: Political-Economic Counselor Michael Dodman for reasons
1.4 b+d


1. SUMMARY (C) Czech President Klaus appointed formally
appointed a minority government led by incoming Prime
Minister Mirek Topolanek on Monday, September 4, bringing to
an end eight years of Social Democrat-led government and
thirteen weeks of uncertainty following the June 2-3
elections. Topolanek's government, which includes as its
foreign minister Sasha Vondra, a well-respected former Czech
Ambassador in Washington, has already demonstrated its robust
approach to transatlantic relations with strong statements in
support of missile defense (which generated in turn harsh
rhetoric from the outgoing Prime Minister, reftel). The new
government's prospects are uncertain, however. Topolanek has
until October 4 to seek a vote of confidence in Parliament,
and has already indicated he will seek the vote on the last
possible day. Most observers believe the government is
unlikely to pass, but will be asked to stay on for a certain
number of months until the next government is formed.
Topolanek himself is acknowledging that his cabinet is a
temporary, bridging government to lead the nation to early
elections next spring, making it unlikely that he will launch
any new long-term initiatives. While it lasts, Topolanek's
government, for which biographies are included below, should
be good for bilateral relations. END SUMMARY


2. (U) During the thirteen weeks following the June 2-3
general election, which resulted in a 100-100 left-right draw
in the 200-seat parliament, Mirek Topolanek, Chairman of the
center-right Civic Democrats (ODS),initiated discussion with
several partners on possible coalitions. He initially signed
a three-party coalition agreement with the Christian
Democrats and the Greens, but was eventually forced to
acknowledge that this coalition could only muster 100 votes
and would be unlikely to pass the vote of confidence. In
early August he was close to an agreement with his main
rivals, the Social Democrats (CSSD),on an agreement that
would have established a minority ODS government supported by

CSSD. But outgoing Prime Minister and CSSD Chairperson Jiri
Paroubek broke off the talks and in the end Topolanek was
forced to go it alone. Topolanek's party, while the largest
in the new Chamber of Deputies, has only 81 seats, twenty shy
of what it needs to pass the vote of confidence. To a large
extent, Topolanek's cabinet, as well as many of his
government's plans, are based on the initial three-party
coalition agreement, which could mean that his jilted former
partners the Christian Democrats and the Greens might
contribute their 19 votes, leaving him again just one vote
short of what he would need.


3. (C) The consensus is that Topolanek's chances of winning
the vote of confidence are not good. Ondrej Liska, head of
the parliamentary faction for the Greens, who has been
meeting Topolanek to discuss the terms under which the Greens
might support the minority ODS government, told us September
1 that "chances are 99.9% that Topolanek will fail the vote
of confidence." Jiri Dolejs, Deputy Chairman of the
Communists, told post August 29 that "Topolanek has no
chance, no hope." Jan Hamacek, CSSD foreign policy expert,
advisor to former Prime Minister Jiri Paroubek and possible
candidate for Chairman of the parliamentary committee on
foreign affairs, told post August 17 that he thought
Topolanek would certainly fail. Even an ODS party advisor
indicated in discussion on September 4 that the prospects for
the vote were so uncertain that the new government would
refrain from making many senior appointments this month.
Political Scientist Vladimira Dvorakova said September 1 that
she didn't think Topolanek would succeed and explained that,
although it might be in the best interest of the nation, with
Senate and local elections just six weeks away it is not in
the interest of political parties to make compromises at this
time. Dvorakova also emphasized the personal animosities and
general polarization that have characterized the
post-election period. In the event the new Topolanek
government fails its vote of confidence, it would offer its
resignation but be asked to stay on until another government
is formed, a step for which the Czech constitution contains
no deadlines.


4. (U) Topolanek has set limited goals for his government,
including progress on the budget, advancing economic reforms
(including pension and tax),and supporting a possible U.S.
missile defense site in the Czech Republic. He admits that
his administration will be a "bridging" government that will

PRAGUE 00001075 002 OF 003


lead the nation into early elections next year, though talk
of early elections needs to be taken with an entire shaker of
salt, as the mechanism for calling early elections, in
addition to being extremely unwieldy and time consuming,
requires almost unanimous political support. The principal
mechanism for bringing about early elections is a series of
three consecutive unsuccessful attempts to form governments.
Although Topolanek tried, informally, to create a variety of
coalitions, this minority government is the first formal
attempt. This government will have its vote of confidence
early in October. A second attempt would be unlikely until
after the Senate and local elections that will take place
October 20-21 (with the second round of Senate elections two
weeks later),meaning the second attempt would not start
until 5 months after the election. For the immediate future,
political uncertainty is a given.


5. (C) But while this government lasts, it should be good for
U.S.-Czech relations. ODS has been the most reliably
pro-American party on the political scene; many members of
the new government have ties to the United States. In its
first day, Topolanek and the new Foreign and Defense
Ministers all made comments very supportive of missile
defense (prompting a war of words between FM Vondra and CSSD
Chair Paroubek, reftel). Vondra, in particular, is a close
friend of the United States, although that does not mean we
will not enjoy trouble-free relations: also in his first day
Vondra criticized the American visa regime for being unfair.
The new Defense Minister, Jiri Sedivy has been on the
faculty of the George Marshall Center in Garmisch. In the
original three-party coalition agreement, Topolanek had
proposed creating a new ministry for EU affairs, largely as a
sop to his pro-European partners, the Greens. In the new ODS
minority government, that ministry has been dropped,
reflecting, perhaps, the skepticism about the EU that runs
deep in the ODS leadership. But the designated minister for
that post, former Czech Consul General in NY Petr Gandalovic,
is still in the cabinet as minister for regional affairs.


6. (SBU) The Topolanek cabinet contains 14 members, three
fewer than Paroubek's (the Ministry of Informatics is to be
abolished; the duties of the Minister for Legislative Affairs
will be handled by the Justice Minister; and there is no
Deputy PM for Economics). Six of the members are not ODS
members.

Minister of Foreign Affairs: Alexandr (Sasha) Vondra, 45.
Vondra was a dissident and spokesperson for the Charter 77
movement. He spent six years as Deputy Foreign Minister and
was the Czech Ambassador to Washington, as well as an advisor
to President Vaclav Havel. Vondra is not a member of ODS, but
will run for the Senate on the ODS ticket in October. In
fact, Vondra will be tied up campaigning for the next 6 weeks
and will be unable to focus exclusively on his new position
at the Ministry of Foreign Affairs. Vondra has already
promised continuity in Czech foreign policy and plans few
personnel changes. He will retain Deputy Foreign Minister
Tomas Pojar and promote him to Senior Deputy.

Minister of Defense: Jiri Sedivy, 46. Sedivy is also
unaffiliated and, like Vondra, was an advisor to President
Havel, from 1996 - 2002. Sedivy is on the faculty of the
George C. Marshall Center in Garmisch, where he lectures in
European Politics and Security. Before taking up that post,
he was the Director of the Institute for International
Relations in Prague. His father, Jaroslav Sedivy, was
Foreign Minister under the caretaker Tosovsky government in

1998.

Minister of Finance: Vlastimil Tlusty, 51. Tlusty was the
ODS shadow Finance Minister and author of its flat tax plan.

Minister of Labor and Social Affairs: Petr Necas, 41. Necas
is the ODS Deputy Chair. He is a long-time parliamentarian
and was for much of the recent past the party's Shadow
Defense Minister. He previously served as Deputy Minister of
Defense.

Minister of Interior: Ivan Langer, 39. Langer (who, along
with Vondra, was the proposed minister that caused the
greatest concern for CSSD Chairman Paroubek) is a long-time
ODS parliamentarian, party functionary, and most recently the
party's shadow Interior Minister.

Minister for Regional Development: Petr Gandalovic, 42.
Gandalovic is the former Mayor of Usti Nad Labem. He was the
Czech Consul General in New York from 1997 - 2002.

PRAGUE 00001075 003 OF 003


Gandalovic will be responsible for helping Czechs draw on EU
funds.

Minister of Justice: Jiri Pospisil, 30. Young ODS
parliamentarian and shadow Justice Minister. Pospisil has
limited English but is widely respected for his knowledge of
the law and sense of judgment.

Minister of Culture: Martin Stepanek, 59. Stepanek,
unaffiliated, is a well known actor and director. He began
working for Radio Free Europe when he moved to Munich in 1983
and continued with RFE when it moved to Prague in 1994.

Minister of Health: Tomas Julinek, 49. Julinek is a medical
doctor and ODS Senator. He was the ODS shadow Health
Minister and a vitriolic critic of his predecessor, CSSD
Minister for Health David Rath.

Minister of Industry: Martin Riman, 45. Riman is a former
Transportation Minister and long-time member of the ODs
shadow government.

Minister of the Environment: Petr Kalas, 66. Kalas is
unaffiliated and an emigre who lived for many years in
Switzerland. He worked for the World Bank. Kalas was a
last-minute replacement for ODS Shadow Environment Minister
Bedrich Moldan who is rumored to have been passed over
because of his Communist past.

Minister of Transportation: Ales Rebicek, 40. Rebicek is a
young ODS Parliamentarian, though more of a technical expert
than a political leader. His background is in transportation
engineering.

Minister of Education: Miroslava Kopicova, 55. Kopicova,
unaffiliated, is one of only two women in the cabinet. She
was previously Director of the National Education Fund.

Minister of Agriculture: Milena Vicenova. Vicenova,
unaffiliated, was previously Director of a department within
the Ministry of Education. She has participated in the USDA
Cochran Program.


7. COMMENT: (SBU) The Topolanek government should be good
for U.S. interests. The big question is whether it will be
around for long enough to make significant changes. The
government will try to at least prepare for reforms in health
care and pensions, and it will, if it chooses, be able to
introduce some changes to the 2007 budget, which must advance
during the fall. Some personnel changes at the Deputy
Minister level will be made. If it passes the vote of
confidence, it will rule at least through next spring and
possibly longer, but will still face tough opposition by CSSD
and the Communists on every attempt to pass meaningful
reforms in social programs.


8. (SBU) If it fails the vote of confidence, there will
likely be changes in the ODS leadership when the party has
its annual Congress in November. Whether President Klaus will
give former Prime Minister Paroubek the second chance to form
a government, as Paroubek wishes and predicts, or whether
Klaus will give it to another ODS leader, such as Prague
Mayor Pavel Bem, is at this time still a matter of
speculation. The prolonged uncertainty and political
polarization during the difficult talks to form a coalition
government following the June elections will only be
exacerbated by the upcoming October elections for the Senate
and local governments. The last time the two main parties
signed a politically expedient opposition agreement
(following the 1998 elections) there were negative
consequences for both in the local elections. Right now --
following the collapse of talks on just such an opposition
agreement -- ODS and CSSD don't even seem to be talking to
each other. In addition, since the President is elected by
both houses of parliament, the October senatorial elections
could have an impact on Klaus' plans for re-election in 2008,
meaning his role in the ongoing political debate could
change. Finally, the October elections will give political
parties a better feel for their standing with voters, thereby
affecting the parties' willingness to accept early elections.
The new Topolanek government is just beginning, and
instability and political uncertainty will dog its early
days. The forecast for the next two months: cloudy.
CABANISS