Prime Minister Vladimir Spidla raised the stakes — for himself and the coalition government — over the next major task it faces, public finance reform, even before the second day of voting in the EU referendum began Saturday. Spidla said in an interview for the daily Pravo that he will resign if the government's planned reforms fail to make it through Parliament. The government's ambitious plan is to reduce the fiscal deficit to 4 percent of GDP by 2006 compared with an expected deficit of 6.2 percent of GDP this year. This has already met with opposition from Spidla's own Social Democratic Party (CSSD), the Communist Party (KSCM) and the trade unions, who say it goes too far, and from the opposition center-right Civic Democrats (ODS), who say the reforms don't go far enough.

"It's a fair approach, Spidla has been strengthened by the results of the referendum and he's looking towards the government's next big step," said commentator Jiri Pehe. "

"I think Spidla's decision to use the psychological boost of the referendum will be effective in the short-term as it's the strongest card he can play, but I don't think that it will last for too long," said Kamil Janacek, chief economist at Komercni Banka. "And while the reforms will be important, the key point for this government's survival will be the debate on the 2004 budget," Janacek said. The debate is expected in December after the final shape of the reforms is decided at the end of July.