Czech Politics: ANO's Budget Balancing Act

The Czech populist party ANO is on the verge of forming the next government after its recent election victory. The party, led by billionaire former Prime Minister Andrej Babis, is considering maintaining the outgoing administration's proposed 2026 budget deficit target to ensure the swift passage of a new budget.

The outgoing center-right government under Prime Minister Petr Fiala successfully realigned public finances to comply with European Union fiscal rules. However, analysts anticipate a shift towards fiscal relaxation with ANO at the helm. According to ANO official Alena Schillerova, the party plans to use the existing budget draft as a basis for new legislation.

Negotiations are underway for ANO to form a ruling coalition with the far-right SPD and the right-wing Motorists party, likely securing a parliamentary majority. Changes to the budget draft will be made during its second reading, allowing for adjustments within chapters, but overall figures will remain constant. The new parliament convenes on November 3, with a potential new government in place by December.