Companies slated for privatization include electricity producer ČEZ, postal services company Česká pošta, Czech Airlines (ČSA), rail operator České dráhy, oil storage company Čepro and aircraft manufactorer Aero Vodochody.

Topolánek told Czech Television his government would prepare these firms for sale, but would not close any deals, at least not until an early election is called next spring.

The ODS had originally planned to sell the shares of most big companies by 2010.

Analysts say, however, that until a full-term government is formed, it is not possible to expect any decisions on privatization.

They say that the delay in privatizing state assets will not have an immediate negative impact on the economy but may hurt it in the long run.

"If privatization were delayed only for the time the interim government is in office, it wouldn't be the worst solution," said Pavel Kohout, an analyst with financial group PPF. "It would be worse if a government is formed for four years and fails to get a strong mandate."

The money raised as a result of privatization would go towards financing a long-overdue reform of the country's pension system.

"The delay will have the greatest impact on the pension reform," said Markéta Šichtařová, director of economic consultancy firm Next Finance. "It will be more difficult to start the reform in several years."

Postponed privatization should not have any effect on the budget deficit or euro adoption, as revenues from planned sales of state assets are not included in the budget as government income, analysts say.

"This should not affect such issues as the adoption of the euro," said Martin Kupka, chief economist at ČSOB bank.

Topolánek's decision not to privatize any companies until the new elections will affect the privatization of troubled aircraft producer Aero Vodochody.

The government reopened the tender to sell the company, which is 10 billion Kč ($456 million) in the red, Aug. 8, allowing eight shortlisted bidders to perform due diligence. The government was expected to award its 100 percent stake in the company to the highest bidder Oct. 18.