Political analysts say an inconclusive result could lead to yet another weak government, extending a decade-long logjam in structural reforms that has caused the Czech Republic to lag behind other European Union newcomers.

Social Democrats backed by mostly older and less well off Czechs are expected to win the most votes in the two-day poll but fall short of a majority, with the country of 10.5 million divided over whether to cut spending or raise welfare benefits.

Drawn-out coalition talks could rattle investors who want a decisive government to shepherd a nascent recovery in the NATO member state after its economy fell 4.1 percent last year.

A main concern is whether officials can rein in a budget deficit that hit 5.9 percent of annual output last year and enact changes to pension, healthcare and welfare systems that have changed little in the 21 years since the fall of communism.

"The country may either face the rule of a leftist government or a grand coalition of parties which have little in common or a multi-party project deemed to be unstable," said Gyula Toth, an economist at bank Unicredit.

"This outcome could obviously have negative implications on potential budget deficit reduction hopes."

Exit polls will be released when polling stations close at 1200 GMT to wrap up the two days of voting. Results will come in during the afternoon and evening. Media reported high turnout and said final turnout could top 70 percent.