Key Takeaways From the Formation of the New Czech Government
President appoints new cabinet, with parliamentary confirmation to follow in January
December 16, 2025
On 15th December, President Petr Pavel formally appointed the new coalition government of Czechia, led by returning Prime Minister Andrej Babiš. The cabinet is yet to be confirmed by a vote of confidence in parliament, however under Czech law it is already eligible to govern, with the first cabinet meeting scheduled for 14th January. The appointment follows the Babiš-led ANO party’s victory in the October parliamentary election, in which ANO secured 80 of the 200 seats in the Chamber of Deputies (lower house). To secure a majority, Babiš formed a coalition with the Eurosceptic Freedom and Direct Democracy (SPD) and the right-wing populist Motorists movement.
The new 16-member cabinet sees ANO controlling eight ministries, including finance, interior affairs and industry and trade. The Motorists control four ministries and three were allocated to the SPD. The appointment came after Babiš resolved a conflict-of-interest issue by shifting his Agrofert business group to an independently governed trust structure.
A previously liberal formation which has gradually shifted toward the right in recent years, ANO’s recent promises include reducing public sector spending, lowering taxes in general (including the corporate income tax), 0% VAT on prescription drugs, improving tax collection and combatting the grey economy. The party is also focused on increasing social support for seniors and families, as well as on affordable housing and improving healthcare. Accordingly, the new government is expected to focus on cost-of-living issues, likely at the expense of fiscal discipline.
The coalition is likely to adopt a more Eurosceptic stance, positioning Prague closer to like-minded governments in Budapest and Bratislava. The new government is expected to be critical of the European Green Deal, the EU’s migration pact and introducing the euro. While committed to EU and NATO membership, domestic support for Ukraine will likely be scaled down. President Pavel, a staunch pro-EU/NATO advocate and ideological opponent of Babiš in many areas, is expected to serve as a key figure in foreign policy and a political counterbalance to the new ruling bloc.
The new 16-member cabinet sees ANO controlling eight ministries, including finance, interior affairs and industry and trade. The Motorists control four ministries and three were allocated to the SPD. The appointment came after Babiš resolved a conflict-of-interest issue by shifting his Agrofert business group to an independently governed trust structure.
A previously liberal formation which has gradually shifted toward the right in recent years, ANO’s recent promises include reducing public sector spending, lowering taxes in general (including the corporate income tax), 0% VAT on prescription drugs, improving tax collection and combatting the grey economy. The party is also focused on increasing social support for seniors and families, as well as on affordable housing and improving healthcare. Accordingly, the new government is expected to focus on cost-of-living issues, likely at the expense of fiscal discipline.
The coalition is likely to adopt a more Eurosceptic stance, positioning Prague closer to like-minded governments in Budapest and Bratislava. The new government is expected to be critical of the European Green Deal, the EU’s migration pact and introducing the euro. While committed to EU and NATO membership, domestic support for Ukraine will likely be scaled down. President Pavel, a staunch pro-EU/NATO advocate and ideological opponent of Babiš in many areas, is expected to serve as a key figure in foreign policy and a political counterbalance to the new ruling bloc.
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Dominik Istrate, Research Director for Central & Eastern Europe at D.Istrate@AreteraPA.com
Dominik Istrate, Research Director for Central & Eastern Europe at D.Istrate@AreteraPA.com