An agreement by the leading Czech political parties to form a non-partisan caretaker government next month is being seen as a defeat for Vaclav Klaus, the eurosceptic president.

It could also strengthen chances for the ratification of the Lisbon treaty, which is before the upper house of the Czech parliament. There, some senators, who had been strong supporters of Mr Klaus and shared his suspicion of the treaty, appear to be closing ranks behind Mirek Topolanek, the outgoing prime minister who narrowly lost a vote of confidence in parliament two weeks ago.