Factbox-What does Czech billionaire Babis' new coalition plan to do?

PRAGUE (Reuters) -Czech election winner Andrej Babis' ANO party signed a coalition deal with fringe right-wing allies on Monday, another step towards his return to power after four years in opposition.

The following are the main policy points agreed by ANO with its coalition partners: the Motorists party, which is sceptical about climate change, and the SPD party, which is against the EU and NATO.

FOREIGN AND EU POLICY

* No transfer of more power to EU from national level 

* No weakening of unanimity principle, where all EU states have to agree any policies or changes 

* Strengthen ties with Slovakia, Hungary and Poland

* Support "diplomatic steps leading to an end to the war in Ukraine and the elimination of the risks of war in Europe"

* EU Green Deal in current form is unsustainable

* Ban on combustion engines from 2025 is unacceptable

* Prepared not to implement ETS2 system of emission allowances for households and transport 

* Reject EU migration pact

* Retain close Israel ties and strengthen U.S. relationship

FISCAL POLICY

* Maintain budget deficits "safely" below 3% of GDP ceiling set by EU

* Not raise any taxes

* Cut corporate tax to 19% from 21% 

* Reinstate certain tax discounts and benefits for families, increase parental allowance

* Mortgage subsidies for young families

* Raise wages, especially for new teachers, soldiers, police and firefighters  

* Make savings in state operations

* Will not take steps to adopt euro, plan to "anchor" crown currency in constitution

* Cap retirement age at 65, reversing reform of previous government allowing it to rise gradually in coming decades

DEFENCE

* Make air and anti-drone defence a priority

* Increase number of professional soldiers, no number given

* No mention of new NATO commitments to raise spending to 5% of GDP in coming years through direct military and infrastructure spending 

* No specific mention of Russia as a threat

ENERGY

* Ensure affordable energy prices, reduce distribution and transmission fees, support nuclear energy

* State will pay renewable energy subsidies costs currently paid by consumers in power bills

* Take steps to gain 100% control in majority state-owned utility CEZ through CEZ buyback, not state budget spending

* Continue work on new nuclear power blocks at the Dukovany plant and further projects including small modular reactors 

* Accelerate construction of flexible energy sources, especially gas, using financial aid through capacity mechanism 

* Maintain some coal-fired plants through state aid to avoid power shortages, with no mention of a phase-out date as planned by previous government

MEDIA AND NGOS

* Cancel fees for public television and radio and move financing to state budget, while keeping their independence

* Prepare legal changes to update definition of public service media, make savings 

* Non-governmental organisations cannot get state funds for "political activism"; "Political" NGOs will have to report foreign funding

(Reporting by Jan Lopatka and Jason Hovet; Editing by Andrew Heavens)