Czech Prime Minister Mirek Topolanek's minority centre-right administration faced a vote of no confidence on Tuesday (March 24) that could force it out of office and undermine policymaking during the global economic downturn.
But the opposition Social Democrats said if the government was defeated, it could stay on to complete the EU presidency, which the Czech Republic holds until the end of June.
The lower house parliament began a session at 1300 GMT, with a lengthy debate expected ahead of the vote.
The government has 96 votes, not all of them sure, in the 200-seat lower house, while the opposition has 97. The rest are defectors from both sides. The opposition must find 101 votes to topple the government.
Even if forced out by an opposition victory, Topolanek's team, long hampered by its weak standing in parliament, would stay in power until politicians agree what to do next, which could take weeks or months.
"The Czech Republic, if the government falls will become the first country in the European Union whose government collapsed during its presidency. So, certainly the Czech Republic could set a record in a way," said political analyst Jiri Pehe.
The Social Democrats lead opinion polls but their margin over Topolanek's Civic Democrats has narrowed to 4.5 percentage points in the latest survey released last week.
The Social Democrats are promoting more tax-and-spend policies and have rejected the government's reforms of the health sector, but analysts said their plans would be limited by their desire to join the euro zone soon.
They are also much more pro-EU integration and oppose U.S. plans to build a missile defence radar in the Czech Republic.
Pehe warned that a loss in the confidence vote could weaken Czech Republic's standing in Europe.
"I think that the Czech Presidency is likely to become very weak and very formal. I think that a government which doesn't have confidence, the trust of the parliament, in any coutry that presides over the European Union is weak not only domestically but also on the international level and this would of course become a big problem for the Czech Republic," he said.
The Czech vote comes just days after Hungarian Prime Minister Ferenc Gyurcsany said he would step down and after governments fell in Iceland and Latvia under the strain of the economic crisis.
The Czech economy has suffered from a slump in exports, and figures released on Monday showed industrial output fell by 23.3 percent in January.
But its banks have needed no bailouts, the public has been calm and Czechs are not heavily exposed to foreign debt.
The crown traded at 27.05 to the euro on Tuesday, down 1.5 percent since the political crisis blew up but beating other currencies in central Europe. It has gained 10 percent from this year's low seen in mid-February.
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