What is the main topic?

The article discusses the resignation of the Czech government and Andrej Babis's efforts to form a new cabinet.

Andrej Babis is a populist billionaire and leader of the ANO party, tasked with forming the new Czech government.

What are the potential policy changes?

The new government may increase fiscal spending and oppose EU migration and climate policies.

Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Finance > Czech cabinet resigns as election winner Babis closer to new government

Finance

Czech cabinet resigns as election winner Babis closer to new government

Published by Global Banking & Finance Review®

Posted on November 6, 2025

2 min read

Last updated: January 21, 2026

Czech cabinet resigns as election winner Babis closer to new government - Finance news and analysis from Global Banking & Finance Review

Czech Government Resigns as Babis Moves Toward New Leadership

PRAGUE (Reuters) -The Czech centre-right government agreed to resign, Prime Minister Petr Fiala said on Thursday, a formal step to handing over power to a new cabinet being formed by populist billionaire Andrej Babis after his October election victory.

The outgoing cabinet remains in office until Babis' team are appointed, which is not expected for several more weeks. President Petr Pavel was scheduled to accept the government's resignation later on Thursday.

Babis' eurosceptic ANO party aims to form a government by mid-December with the far-right SPD party and the Motorists party campaigning against carbon reduction policies.

The government's resignation was required by the constitution after the election of a new house speaker on Wednesday.

BUMPS AHEAD

The election-winning parties' agenda is likely to lead to higher fiscal spending, reduced support for Ukraine's fight against Russia's invasion, and stronger opposition to EU migration and climate policies than under Fiala's cabinet.

Pavel has tasked Babis with forming the new government but has not yet appointed him as prime minister. They meet next week for an update on government-building talks.

Pavel said on Wednesday he would ask Babis how he would remove a conflict of interest stemming from his ownership of companies, including his Agrofert empire of hundreds of firms mainly in farming, chemicals and food industries which receive tens of millions of euros in national and European subsidies.

Receiving public aid and contracts is legally incompatible with holding a government post.

QUESTIONS OVER NOMINEES

Pavel has also said he would protest against government nominees who could question the country's EU and NATO commitments.

This may include the defence minister, a position which according to the coalition deal goes to SPD. It has said it would pick an independent expert.

The Motorists should lead the foreign ministry and, according to media reports, insist on nominating former car racer and internet personality Filip Turek, who has in the past put on social media networks posts showing Nazi memorabilia or imitating the Nazi salute.

Turek has denied he would be a Nazi sympathiser and questioned the authenticity of the posts or called them humour in poor taste on his part.

A source close to the presidential office told Reuters that Turek would be unacceptable.

Babis has refused to comment on personnel nominations.

(Reporting by Jan Lopatka and Jason Hovet; Editing by Chizu Nomiyama )

Czech cabinet resigns as election winner Babis closer to new government

Quick Summary

Czech Government Resigns as Babis Moves Toward New Leadership

Key Takeaways

Frequently Asked Questions about Czech cabinet resigns as election winner Babis closer to new government