By Jan Lopatka
PRAGUE (Reuters) -The populist ANO party of billionaire Andrej Babis faced tough talks on forming a government on Sunday after it won a weekend election but fell short of a majority, leaving it in need of partners who are demanding seats in the cabinet.
ANO is allied with Hungary’s Viktor Orban and a number of far-right parties in the Patriots for Europe group in the European Parliament, and its win will strengthen the populist, anti-immigration camp in the European Union.
ANO won the Czech election on Saturday with 34.5% of the vote, complete results showed, ahead of Prime Minister Petr Fiala’s Spolu (Together) centre-right coalition with 23.4%.
SHORT OF A MAJORITY
But ANO will have just 80 seats in the 200-seat lower house, meaning it will need partners to establish a viable cabinet and help push through Babis’s agenda promising higher wages and lower taxes, with likely higher budget deficits.
Babis said on Saturday he wanted a one-party ANO government backed by the anti-NATO and anti-EU SPD, and the Motorists, a right-wing eurosceptic group.
But those two parties want to join the cabinet directly, their representatives said on Sunday.
“It is clear that with the Motorists and SPD we have 108 seats,” Babis said after meeting President Petr Pavel on Sunday. “We have to clarify our positions, we just had introductory talks last night.”
PRESIDENT PLAYS IMPORTANT ROLE
Babis, who was previously prime minister in 2017-2021, declined to comment further on Sunday.
The president has the right to appoint prime ministers and ministers, and therefore plays an important role in post-election talks. He has hinted he may refuse any ministers who would undermine the country’s EU and NATO stance.
After his win, Babis stressed he was rejecting accusations he may weaken the Czech Republic’s position in the EU and NATO but confirmed he would reject the EU’s carbon-reduction policies and its pact on immigration.
He said he would focus on domestic policies rather than support for Ukraine, which was a key agenda for the current government.
Babis, 71, also needs to resolve a conflict of interest stemming from his ownership of a chemicals and food business employing 30,000 people, which has many public contracts and local and EU subsidies.
CABINET NEGOTIATIONS WILL BE HARD
In addition he faces a trial on allegations of subsidy fraud, which he can avoid if the new parliament refuses to lift his immunity. He calls the case political.
Political analyst Jan Charvat said a Babis cabinet including the Motorists with external backing from the SPD seemed the easiest way, although the negotiations would be hard.
The parties agree on a tough stance on immigration and oppose the EU Green Deal. An ANO cabinet would be cooler, though not hostile, on Ukraine, Charvat said.
“The very active pro-Ukrainian Czech position will be significantly weakened, it will be cooler,” Charvat said.
“Babis needs to look good in front of foreign partners … We had seen before (when he was in government) he was more muted in negotiations, finding compromises, than what he presented to the domestic audience. I think this will continue.”
Failure to find agreement with the two parties could eventually push Babis to try to reach out to parties of the outgoing cabinet, although he and the other parties have ruled that out for now.
An early election is not an easy option as it would require three government attempts to fail in a parliamentary confidence vote, or agreement by three-fifths of the lower house.
(Reporting by Jan Lopatka; Editing by David Holmes)
