Conservative leader becomes new Czech premier

We need a stable,hardworking Cabinet that will quickly deal with the state budget, Necas said. His party wants to gradually eliminate the deficit expected to reach 5.3 percent this year.

The coalition wants to carry out health-care and pension reforms and fight corruption. It also proposes to reduce social benefits and charge tuition at universities.

It has no target date for adoption of the euro currency.

Klaus asked Necas on June 4 to lead coalition talks. The talks are expected to conclude soon,and Klaus is expected to appoint Necas new government by mid-July.

The new government must seek a confidence vote in Parliament within thirty days.

The Czech Republic has been run by a caretaker government since a three-party coalition led by the Civic Democrats lost a confidence vote in March 2009,in the middle of the Czech EU presidency.

Necas was Social Affairs Minister in the previous government.

The caretaker government formally resigned Friday but was asked by Klaus to govern until the new government is appointed.