The Czech president, Vaclav Havel, has named the head of the republic's central bank, Josef Tosovsky, as his new Prime Minister.

Klaus stepped down amid a party-funding scandal

He replaces Vaclav Klaus who stepped down amid a scandal surrounding the funding of his Civic Democratic Party, the main grouping in the three-party coalition.

Mr Tosovsky is expected to be a caretaker Prime Minister until early elections.

Mr Havel said one reason for choosing Mr Tosovsky was that he enjoyed the support of the smaller coalition partners, the Christian Democrats and the Civic Democratic Alliance, as well as the opposition Social Democrats.

Mr Havel said: "I believe that this government, regardless of the fact its mandate will probably be limited in time, will be a diligent government which will continue the work of the previous government and fulfill the tasks which the present moment places before it."

Prime Minister Vaclav Klaus and his three-party coalition cabinet resigned on November 30.

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