TOP 09 will only participate in gov't led by PM Nečas

Prague, Oct 28 (CTK) - The junior ruling TOP 09 will not take part in any other Czech coalition government than is the cabinet of Prime Minister Petr Necas (Civic Democrats, ODS), Finance Minister Miroslav Kalousek (TOP 09) told Prima TV yesterday.

"I firmly believe that TOP 09 will continue in the Petr Necas government. It won't continue in any other government, said Kalousek, TOP 09 first deputy chairman.

MP Petr Tluchor, the head of an ODS rebel group, sharply criticised Kalousek for "ordering ODS members for whom they should vote at the congress."

A new Civic Democrat leadership will be elected at the party's congress next weekend. Necas will be defending the post of chairman and he seems to have no strong rival. Some of his critics will probably run for the posts of ODS deputy heads.

The lower house of parliament is to vote on a tax package linked to a vote of confidence in the government on Wednesday. If the tax package is not passed, the government comprising the ODS, TOP 09 and the small Liberal Democrats (LIDEM) will fall.

The tax package is to help keep the state budget deficit under 3 percent of GDP next year. It increases both the basic and reduced VAT rates by 1 percentage point and imposes a solidarity tax on the highest earners, among others.

Six ODS rebel MPs oppose the tax package and the ODS leadership headed by Necas has not reached any compromise with them. The government coalition has only a narrow majority in the lower house.

Necas said is no agreement is possible if the real aim of the ODS rebels is to remove him from the ODS helm.

Kalousek said yesterday no changes to the tax package decided by the lower house are acceptable for TOP 09 unless they are agreed on in the coalition.

If the ODS rebels joined forces with the left-wing opposition in the house, they might push through the changes they demand. The rebels mainly oppose the raising of taxes.

If the package is changed without coalition talks, TOP 09 will leave the government, Kalousek said.

The TOP 09 leadership has agreed on this on Thursday, he added.

Tluchor said Kalousek should wonder why people voted left-wing parties in the recent regional elections.

"The inability or unwillingness to adopt real reforms should be paid for by another wave of new taxes," Tluchor said, indicating that the ODS and TOP 09 betray their right-wing programmes.