Czech Prime Minister forced out by luxury flat scandal

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Independent
By Alan Crosby in Prague
26 April 2005


Jiri Paroubek, a leftist, is poised to become the Czech Prime Minister, replacing Stanislav Gross, after a housing scandal tore apart his government less than a year after he took power.

Europe's youngest premier, at 35, stepped down as part of a deal reached last week that will allow his former three-party coalition government to reform under Mr Paroubek, the Regional Development Minister. Analysts said the decision would be welcomed by markets which had feared the crisis could drag on through the summer. But Mr Paroubek's leftist credentials have raised concerns over the pace and direction of economic reforms planned as the country aims to adopt the euro by the end of the decade.

Petr Fujcik, a spokesman for President Vaclav Klaus, told reporters that Mr Paroubek would be called to Prague Castle to be nominated as Mr Gross's replacement.

The former prime minister, a member of the leftist Social Democrats, has denied wrongdoing in the financing of a luxury Prague flat six years ago, but was forced out by the Christian Democrats, who left the government weeks ago and demanded his resignation as a condition of returning.

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