Czech Prime Minister Andrej Babiš’s government faced a parliamentary no-confidence vote Tuesday as opposition parties challenged its proposed budget deficit and raised concerns over the billionaire premier’s potential conflict of interest.
The opposition called the vote after the government approved a 2027 budget with a projected deficit of 386 billion koruna ($18 billion), which would be the second-largest in the country’s history. The deficit for this year is expected to reach 310 billion koruna.
Opposition parties and most economists have criticized the proposed shortfall, particularly as the Czech economy is projected to grow 2.7% next year, according to the Czech central bank.
The government has defended the spending plan, saying higher borrowing is needed to increase investment and finance priorities including health care, pensions and higher salaries for public-sector workers.
Babiš, one of the Czech Republic’s wealthiest citizens, has also faced continued scrutiny over potential conflicts between his business interests and his political position.
After his ANO (YES) movement won October’s parliamentary election, Babiš transferred around 200 companies belonging to his Agrofert conglomerate to an independent trust fund in an effort to comply with conflict-of-interest legislation. Failure to address the issue could have prevented his businesses from receiving state and European Union subsidies.
His investment in the health care sector was not covered by the transfer.
Earlier this month, however, the European Commission said the trust arrangement did not adequately resolve the conflict-of-interest concerns, maintaining that Babiš remained in a potential conflict and suspending some payments to Agrofert.
Opposition parties have also accused Babiš of attacking independent courts, judges and the media.
His government is backed by a coalition that includes two smaller political groups advocating reduced support for Ukraine and opposing some major European Union policies.