Finance
New Czech government signals tough stance on migration, EU emissions rules
Published by Global Banking and Finance Review
Posted on December 16, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 16, 2025
2 min readLast updated: January 20, 2026
The Czech government opposes EU migration and emissions rules, risking a clash with Brussels. Prime Minister Babis seeks allies to challenge these policies.
PRAGUE, Dec 16 (Reuters) - The new Czech government, in its first full meeting on Tuesday, rejected the European Union's approved migration pact and an emissions trading plan, potentially setting up a clash with Brussels.
Following through on campaign promises, billionaire Prime Minister Andrej Babis' populist ANO party and its right-wing ruling coalition partners took aim at migration and the ETS2 emissions trading system right away.
The government says the EU's ETS2 emission allowances, which come into force in 2028 after many EU countries pushed for a delay from 2027, will raise energy prices for Czech households and threaten the competitiveness of European industry.
"We will not further implement this provision of the EU directive," Babis told a press conference, adding that his government - which took office on Monday - would look for allies in the 27-nation bloc to get the plan scrapped.
Babis said multiple countries were demanding changes and his government had a plan on how to proceed, without elaborating.
TOUGHER STANCE ON MIGRATION
By rejecting agreed EU policies, Babis' government risks infringement proceedings and possible loss of EU funds and financial penalties.
Babis' cabinet also called for a tougher stance on migration into the Czech Republic, a stricter returns policy, and more severe EU migration rules than those agreed.
It was not clear if the government's rejection of the migration pact would have any concrete impact, and Babis gave no details.
The EU's migration pact, due to take effect in June 2026, rewrites the rules for handling illegal migrants. It includes "solidarity" measures that envisage relocating migrants to other countries or possibly financial and operational aid.
Having accepted some 400,000 Ukrainian refugees, the Czech Republic has been exempted from making any solidarity payments for the next year.
The Czech Republic and other eastern European member states have long resisted pressure from Brussels to take in migrants, most of whom in any case want to settle in wealthier western EU states.
(Reporting by Jan Lopatka and Jason HovetEditing by Gareth Jones)
The EU migration pact is an agreement designed to reform the rules for handling illegal migrants within the European Union, including measures for relocating migrants and providing operational aid.
The ETS2 emissions trading system is a European Union initiative aimed at reducing greenhouse gas emissions through a market-based approach, where companies buy and sell emissions allowances.
Emissions allowances are permits that allow companies to emit a certain amount of greenhouse gases. Companies can trade these allowances in a market to incentivize reductions in emissions.
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