Czech's ruling party approves new coalition government, backs PM's resignation

Czech's ruling Social Democrats Party on Saturday approved the proposal on forming a coalition government, paving the way for Prime Minister Stanislav Gross's resignation over his financial scandal.

The coalition government, proposed by the outgoing prime minister on Tuesday, was approved by an overwhelming majority of the executive committee of the party in a bid to end a three-monthpolitical crisis over Gross's personal financial scandal.

Thus, the prime minister will step down and be replaced by fellow Social Democrat Jiri Paroubek, who is also vice chairman ofthe party.

Paroubek will then form a government with the same coalition partners as Gross -- the centrist Christian Democrats and the rightist Freedom Union -- with a majority of 101 seats in the 200-seat lower house.

The proposal, approved by all three coalition parties, will be submitted to President Vaclav Klaus soon. The president is expected to approve the proposal, accept the resignation of Prime Minister Gross, and appoint Paroubek as his successor no later than Monday or Tuesday.

Paroubek has released the names of his ministerial candidates on Friday, with little change from the previous government. Finance Minister Bohuslav Sobotka and Foreign Minister Cyril Svoboda are among those who stay on in the cabinet.

Gross has been trapped in the financial scandal mire for about three months when the two smaller coalition parties asked him to explain how he can afford to buy a luxury apartment in Prague and further demanded him to step down over the scandal.

Gross initially explained that he bought the apartment with hisown money and a mortgage, then said he borrowed money from his uncle. After weeks of trying to hold his government together to noavail, Gross said on April 9 that he would resign and make way fora new coalition government.

Source: Xinhua