A new Czech government coalition formed a month after the election brings together billionaire populist Babis and two right‑wing parties, including the Motorists and SPD, with a stance against Ukraine aid and EU/NATO withdrawal but open to referendums.

Together, the three parties command 108 seats in the 200‑member Chamber of Deputies, enough to form an ANO‑led cabinet if supported.

The coalition’s agenda centers on pursuing national interests and signaling a shift toward a different Europe, with a more Eurosceptic and nationalist orientation.

Critics warn of a potential budget Armageddon, predicting higher deficits and inflation from tax cuts for the rich and promises of lower energy prices and earlier retirement.

Analysts note tensions between populist proposals and EU/NATO commitments, including deficits, defense spending targets, and energy subsidies, within a broader regional politics context.

Fiscal plans aim to maintain low deficits, cut corporate taxes, reject the euro, and expand family support through tax benefits and parental allowances.

Defense priorities include increasing troop numbers and advancing air defense and anti‑drone capabilities to bolster security.

The investiture agreement rejects euro adoption and signals a shift away from Brussels, proposing retirement at 65, corporate tax cuts, higher public wages, and energy price subsidies, without setting a deficit ceiling.

The draft policy statement promises a realistic, professional, and pragmatic foreign policy alongside domestic efforts to revive the economy.

A second draft reiterates that the next government will pursue pragmatic foreign policy and focus on reviving the domestic economy.

A third draft highlights a pragmatic foreign policy and domestic economic revival as core priorities.

Energy policy will emphasize expanding nuclear capacity and keeping some coal plants for energy security.

Babis’s prior term is noted, with policy shifts toward more spending, climate policy skepticism, migration controls, and reduced Ukraine aid.

Economists warn that ambitious fiscal plans without funding could pose economic challenges.

Babis seeks to centralize EU policy oversight, potentially appointing a foreign minister and facing presidential opposition.

The group contemplates enshrining the Czech crown in the constitution while keeping euro adoption as a future option, signaling monetary sovereignty discussions.

The coalition supports retirement at 65 and requires foreign-funded organizations to disclose donors.

Election turnout exceeded 50%, with districts over 60%, and voting by mail for citizens abroad was introduced.

Personnel decisions are contentious, with debate over nominating Filip Turek as Foreign Minister and other potential appointments.

The coalition intends to grow public spending while opposing key EU climate and migration policies.

Babis maintains Eurosceptic tones but rules out referendums on EU/NATO membership and supports diplomatic efforts on Ukraine.

SPD’s euro‑skeptic stance and calls for an EU membership referendum drew scrutiny, though not derailed by coalition talks.

Analysts view Babis’s return as potentially challenging EU unity on Ukraine aid and bloc cohesion amid broader regional dynamics.

Babis, now 71, campaigns on higher spending and opposition to EU climate and migration policies, signaling a shift in policy direction.

The coalition’s core themes are economic revival and strengthened international alignment.

The agenda includes zero tolerance for illegal migration and ending the broadcasting license fee.

The development signals a major realignment in Czech politics with potential implications for EU and regional security stances.

The agreement comes ahead of the final EU leaders’ summit of the year and ahead of the 2026 budget process.

The current cabinet could resign once new leadership is in place, with parliamentary procedures underway.

Tax cuts and higher public wages are planned alongside energy subsidies, with economists warning these could widen deficits, though the coalition aims to stay under the EU 3% cap and protect the koruna.

The coalition seeks to maintain deficits below the EU limit, while resisting euro adoption and seeking constitutional protection for the Czech crown.

The new government aims to challenge some EU policies, potentially complicating Brussels’ green agenda, Ukraine aid packages, and sanctions, while staying oriented toward EU and NATO membership.

Babis expressed hope that the caretaker government would present the budget to parliament in early November after signing.

The coalition program prioritizes affordable energy prices, healthcare access, housing as a public good, fair pensions, and internal security.

Europe-wise, Okamura emphasizes pragmatic cooperation and decision-making sovereignty, with a budget review in mid-December serving as a stability test for the new coalition.

Budget discussions include a deficit proposal and potential resubmission of a 286 billion crown deficit to the new parliament.

Babis is allied with Viktor Orban and the Visegrad Group, signaling a shared regional stance on EU and security matters, particularly Ukraine.

The development mirrors broader European trends where nationalist and anti-immigrant parties gain influence.

The outgoing government’s fiscal discipline and support for Ukraine are expected to shift under the new populist cabinet.

Controversies surround Environment Minister designate Petr Macinka for climate-change remarks, highlighting the contentious nature of appointments.

The agreement rejects the EU Emissions Trading System, prioritizes nuclear energy, retains the Czech crown, and reintroduces electronic registration of sales.

The outgoing government reduced the deficit to about 2% of GDP, setting a benchmark for the new coalition’s plans.