Following elections last month, the right-wing TOP 09 and the centrist Public Affairs parties have been holding talks with the Civic Democrats.

But the talks have become snagged over who should get the crucial finance and interior ministries.

The Czech Republic has been in political limbo for more than a year.

The three parties expected to form a government say they aim to bring the budget deficit under 5% next year, from a projected 5.3% in 2010.