Czechs will not join new euro zone crisis mechanism

* Govt rules out joining permanent aid mechanism

* Opposes move toward a fiscal union

PRAGUE, Dec 8 (Reuters) - The Czech Republic will not take part in any future permanent euro zone financial aid mechanism, the government agreed early on Wednesday.

European governments are yet to agree on the exact form of a new fixed arrangement to follow the European Financial Stability Facility, which lapses in 2013.

The Czechs already do not take part in the temporary EFSF, unlike some other EU countries which do not have the euro either but have joined the mechanism.

The decision was expected after Finance Minister Miroslav Kalousek said in late November he was sceptical about the country's participation in any new scheme. [ID:nLDE6AP0R6]

"The position is such that this crisis mechanism will involve euro zone member countries only, which means it will not concern countries such as the Czech Republic, which is not member of the euro zone," Prime Minister Petr Necas told reporters.

Defence Minister Alexander Vondra, speaking on behalf of the government in the Senate on Wednesday morning, said the Czech Republic should not support any mechanism that would lead to a fiscal union.

He also said it was in the country's interest that an orderly bankruptcy and debt restructuring systems are created. The Czech Republic should support new stipulations in the EU treaty that would ban issuing joint European sovereign bonds, as proposed by some of the bloc's EU leaders.

"We can support that aid is provided under the following conditions: the euro zone is threatened as a whole, (the aid) will be the last resort, (the aid) will include the private sector, and .... the IMF," Vondra told the lawmakers.

The Czechs have been cautious about adopting the euro. They are reluctant to set a euro entry target date, saying the costs of switching to the single currency are too high. [ID:nLDE6B505F]

Czech central bank board member Pavel Rezabek said on Dec. 1 the Czech Republic should not take in the new scheme, and the bank also suggested the government negotiate a permanent opt-out from euro zone membership, a position that Necas rejected. [ID:nLDE6B01GT] (Reporting by Jana Mlcochova and Robert Muller; Editing by Toby Chopra)