FACTBOX-Political risks to watch in the Czech Republic

By Jan Lopatka

Prague, Feb 1 (Reuters) - The election of leftist Czech President Milos Zeman last week will bring more difficulties to the country's weakened centre-right cabinet, although he has no direct power to unseat the government.

Zeman, prime minister in 1998-2002, made a political comeback when he beat Foreign Minister Karel Schwarzenberg in the first-ever direct presidential election.

Zeman has made clear he would take a more active role in politics and has attacked the government, which only holds 99 out of 200 seats in the lower house after defections last year.

Here are the main political risks to follow:

ANTI-GOVERNMENT STANCE

Zeman won a much of his support from people dissatisfied with years of austerity and tax hikes under Prime Minister Petr Necas's government. After being elected in a Jan. 25-26 poll, Zeman said the government should quit given its unpopularity and lack of a majority.

Necas rebuffed Zeman and said he had no intention to leave before a regular election in mid-2014. He has already survived five confidence votes since 2010.

What to watch:

- Will Zeman attempt to win over some deputies to bring down Necas?

INTERNAL CLASHES

The latest in a string of internal clashes in the three-party ruling coalition appeared this week over a demand by the TOP09 party for the country to join the EU's fiscal pact, an agreement the mildly euro-sceptic Necas has rejected so far.

Some politicians and commentators believe TOP09 would not mind an early election because of a wave of popularity of its chief Schwarzenberg, who scored well in the presidential election.

What to watch:

- Can the row grow into a serious coalition conflict?

AMNESTY

President Vaclav Klaus, as one of his final acts before leaving office in March, announced an amnesty on Jan. 1 that freed thousands of prisoners. The amnesty was also signed by Necas, angering coalition partner TOP09 because other ministers were not informed. It is now a point of friction in the coalition and is hugely unpopular because it pardoned people suspected of serious economic crimes.

What to watch

- A potential court ruling questioning the legality of the amnesty may escalate the row

NUCLEAR DEAL

The majority state-owned power company CEZ is running the country's biggest-ever procurement tender to build two new units at its Temelin nuclear plant, expected to cost more than $10 billion.

Miroslav Slouf, a former Communist Party official and a close adviser to Zeman, criticised one of the bidders, Westinghouse because of hiccups in its previous supplies to the Czech Republic and spoke in favour of France's Areva which has been disqualified from the tender.

What to watch:

- Potential pressure form Zeman on government in the Temelin tender, which may destabilise the cabinet (editing by Ron Askew)

http://www.globalpost.com/dispatch/news/thomson-reuters/130201/factbox-political-risks-watch-the-czech-republic