Czech Finance Minister resigns

PRAGUE, Czech Republic -- Finance Minister Pavel Mertlik has resigned, in a blow to the Czech Republic's minority Social Democrat Government.

Mertlik resigned in protest at his lack of influence on some key government decisions.

The action has raised fears of a delay to key privatisations and fiscal reforms, potentially damaging the Czech Republic's hopes of early entry to the European Union.

Mertlik was expected to help lead the Czech economy into the EU and was widely respected abroad for his push to speed up privatisation.

Economic analysts said they feared the move will result in a slowing down of the sell-off process, with several major privatisations in the telecommunications, utilities and banking sectors slated for this year and next.

An analyst at Patria Finance, David Marek, said "(Mertlik's resignation) is surprising news, but understandable...The resignation may lead to a delay in reforms of the expenditure side of the state (budget) and other things such as privatisation."

Prime Minster Milos Zeman is due to face voters in a general election in June 2002 but the Democrats are trailing two centre-right groups by up to 10 percent in public opinion polls.

EU aspirants: View from the street
December 8, 2000

Czech Republic basic facts
Czech Republic Government
Europa

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.