Czech PM Bohuslav Sobotka announces government resignation

[Damian0358]

[QUOTE]Czech Prime Minister Bohuslav Sobotka has announced that he will submit his government's resignation later this week because of a disagreement with Finance Minister Andrej Babiš.

Mr. Sobotka is unhappy about alleged unexplained business dealings of Mr. Babiš, a billionaire businessman.[/QUOTE]

[QUOTE]The announcement on Tuesday reflects tensions in the country's ruling coalition six months ahead of a parliamentary election that Sobotka is expected to lose.

Sobotka said there are suspicions that Babis, the country's second richest businessman, avoided paying taxes in the past. The billionaire politician has dismissed any allegations against him as "lies or half-truths".

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Last week, Sobotka asked Babiš to clarify his past use of some 55m euro-worth ($60m) of tax-free bonds in connection with Agrofert, a sprawling conglomerate that he ran before putting his assets into a trust earlier this year to ward off conflict of interest allegations.

Sobotka said on Tuesday he could fire Babiš, but that would mean his rival would be given extra time to campaign ahead of the upcoming vote.

"That's the reason I'm opting for the only reasonable solution which is available, and that's the government's resignation," he said, adding: "A trust of the public in politics is at stake."

Sobotka and his cabinet's resignation will give the coalition a chance to form a government again, but without Babiš. Another option is for parliament to call early elections.[/QUOTE]

[QUOTE]Sobotka said Babiš had damaged the cabinet's image. He said firing the minister and leaving the cabinet in place - a solution that seemed likely in recent days - would only help Babiš to portray himself as a martyr, and therefore the full cabinet's resignation was the way to go.

Sobotka said he would seek a meeting with [President] Zeman to agree timing for the resignation and further steps. He said the coalition could possibly be recreated without Babiš as minister, or the election could be held earlier.

The decision hands large power to Zeman, who can choose a prime minister of his liking. In 2013 he appointed his ally Jiří Rusnok -- now the head of the central bank -- as caretaker prime minister against the wishes of most political parties.[/QUOTE]

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