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Mirek Topolanek, from the far east of the Czech Republic, likes to say that he's a "guy with balls" -- and he acts accordingly. He once shouted "I'll kill you" at a journalist and he's raised his middle finger at political opponents. He has referred to the EU's Lisbon Treaty as "a pile of crap."

But since becoming prime minister two years ago, the tough guy seemed to have gotten himself under control. He deftly hammered out a coalition and steered his Civic Democratic Party (ODS) -- middle class and traditionally critical of the EU -- on a Brussels-friendly course. And since January, Topolanek has even proved to be a passable statesman as his country holds the European Union's rotating presidency.

Then last week, he relapsed. Topolanek declared in front of the European Parliament that United States President Barack Obama's multi-billion-dollar stimulus package was "a road to hell" -- and this just as Prague is set to host Obama at the US-EU summit later this week.

The Czech government lost a parliamentary vote of no confidence on Tuesday, suffering an embarrassing defeat midway through its presidency of the European Union and casting doubt on the country’s ability to shepherd the world’s biggest trading bloc during a time of economic crisis.

the Czech government of Prime Minister Mirek Topolanek seemed to be collapsing more as a result of political infighting.

Mr. Topolanek said Tuesday that he would resign after the motion passed, 101 to 96, in the 200-seat lower house.

The European Union’s crisis of leadership during the economic downturn was thrown into sharp relief on Wednesday, as the current president of the 27-nation bloc labeled President Obama’s emergency stimulus package “a way to hell” that will “undermine the stability of the global financial market.”

What made the situation even more trying for those who hope that the European Union might find a common voice in this crisis was that Mr. Topolanek’s own governing coalition collapsed on Tuesday. The Czech opposition party, which favors bigger increases in domestic spending during the slump, won a no-confidence vote on his leadership.

Despite widespread fears that European nations could prolong the current recession unless they act in concert with one another and the United States, the slump has highlighted differences over deficit spending, interest rates and possible bailouts for new union members in the East. There are few signs that the alliance is developing the political leadership to match its economic weight.Britain, like the United States, has undertaken an aggressive fiscal stimulus and slashed interest rates. But Germany and France have opposed calls for further large stimulus packages and even greater deficit spending, while the European Central Bank has kept interest rates higher than they are in the United States and Britain. Germany and even some Central European countries opposed calls by Hungary for the creation of a single rescue fund for heavily indebted countries in Eastern Europe.

The Czech Republic's centre-right minority government has lost a vote of no-confidence midway through the country's six-month EU presidency. Four rebel MPs voted with the opposition Social Democrats and Communists against PM Mirek Topolanek.

Social Democrat leader Jiri Paroubek said ahead of the vote that the government could "complete the Czech EU presidency or its substantial part". However, Mr Topolanek has ruled out the idea of a caretaker government until June, when the EU presidency passes to Sweden. According to the constitution, Czech President Vaclav Klaus must decide who to choose to form a new administration. If three attempts to do so fail, early elections will be called.

The BBC's Rob Cameron in Prague says this surprise result, which threw observers completely off guard, could have far-reaching consequences beyond the country's borders. In addition to chairing the European Council, the Czech Republic is also in the middle of ratifying the Lisbon Treaty and is in talks with the United States on placing a radar base on Czech soil. All these important foreign policy initiatives are now thrown into doubt, our correspondent adds.

Speaking before the European Parliament on Wednesday, Mirek Topolanek described the stimulus measures and financial bailouts passed by US President Barack Obama as the "way to hell." He warned that the massive costs of the stimulus plans and financial bailouts would "undermine the stability of the global financial market" and that Obama was merely repeating the errors of the Great Depression of the 1930s.

The comments also threatened to unravel the tenuous unity reached by EU member states for a joint response to the economic crisis. Last week, EU leaders reached a carefully constructed political truce designed to bury their differences and agree on a common policy ahead of the London meeting. At last Friday's summit, they pledged an additional €75 billion to finance loans by the International Monetary Fund and to double a credit line for struggling economies of Eastern European member states.

Topolanek may have felt unburdened by diplomatic niceties after his government lost a no-confidence vote in the Czech parliament on Tuesday. The Czech prime minister submitted his resignation the same day, but will continue on as a caretaker of the EU's rotating presidency through June.

talian PM Silvio Berlusconi is being investigated for misuse of public funds after photos showed he had used state aircraft to fly friends to Sardinia.Mr Berlusconi confirmed on Thursday that he had been formally placed under investigation by prosecutors, but said the probe would be "swiftly shelved".

On Saturday, the 72-year-old succeeded in blocking the publication of 300 pictures taken at his Sardinian villa. They reportedly included scenes of parties on his estate attended by several young women, including the 18-year-old model Noemi Letizia.

One photograph also showed the former Czech Prime Minister, Mirek Topolanek, standing naked by the side of a pool, according to Mr Berlusconi's lawyer. Others showed topless women sunbathing.