* Czech parties end deadlock on new cabinet nominees
* New finmin Janota plans 2010 budget with gap below 2009's
* Euro not an issue now
* Markets little moved, awaiting signs of budget moves
(Adds Fischer quote, Janota comments on policies)
By Jana Mlcochova
PRAGUE, May 5 (Reuters) - Czech leaders agreed on nominations for a new cabinet on Tuesday, clearing the way for the caretaker administration to take power until an October election and battle a deepening economic downturn.
The agreement ends a political crisis that undermined the Czechs' six-month EU presidency and crippled policymaking at a time when the central European country was feeling the full impact of the global economic crisis.
"I am happy that we are ending a rather long period of time of assembling the cabinet... and starting by the Friday appointment the new cabinet will be able to take over its responsibilities adequately," incoming Prime Minister Jan Fischer told reporters.
Fischer put forward the candidates for his new technocrat cabinet to President Vaclav Klaus, supported by the two main political parties who will fight out the autumn elections. Klaus is expected to appoint the cabinet on Friday.
The finance ministry had been the main point of contention between the main parties until non-partisan budget expert and deputy minister Eduard Janota, 57, agreed to take the post.
Outgoing Prime Minister Mirek Topolanek proposed the respected 31-year veteran at the ministry as a candidate who can tackle sharp growth of the budget deficit as revenues collapse.
The opposition Social Democrats had blocked the previous plan calling for current minister Miroslav Kalousek to stay on, but said Janota was a good candidate.
BORROWING JUMP
The Czech crown
Janota, who plans to quit the state administration after his role in Fischer's cabinet ends, said he wanted the 2010 central state budget with a deficit smaller than 150 billion crowns ($7.57 billion), about the same as this year.
This would put the 2010 deficit at 4.6-4.7 percent of gross domestic product, but would jump to 6.7 percent in the absence of saving measures, news agency CTK quoted Janota as saying.
That was largely in line with the figures announced by the current administration.
He also said Fischer's government would not press the adoption of the euro due to the swelling public sector gap.
The latest finance ministry forecast sees 2009 economy shrinking by 2.3 percent and the public sector deficit, the main part of which is the central state budget deficit, to rise to 4.5 percent of the gross domestic product from 1.5 percent in 2008 and far above euro zone entry 3 percent threshold.
Analysts said Janota was a good pick.
"From an economic point of view, it is good news judging by Janota's track record," JP Morgan EMEA economist Miroslav Plojhar said.
"But for markets it's not a significant piece of news. The spread of Czech bonds against swaps is linked to the fact that the finance ministry, with or without Janota, must issue much more debt than planned."
Data on Monday showed the budget deficit had already doubled on an annual basis in April, exceeding the full-year plan and the finance ministry has signalled it could issue another 90 billion crowns in domestic debt in months ahead.
(Reporting by Jana Mlcochova and Mirka Krufova; Editing by Patrick Graham)