Published by Global Banking & Finance Review®
Posted on November 3, 2025
3 min readLast updated: January 21, 2026
Add as preferred source on GoogleCzech billionaire Babis forms a new coalition focusing on limiting EU power, fiscal reforms, and energy policies, including nuclear support.
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)
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period.
Corporate tax is a tax imposed on the income or profit of corporations, typically calculated as a percentage of the company's taxable income.
Climate change refers to significant changes in global temperatures and weather patterns over time, primarily driven by human activities such as burning fossil fuels.
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