PRAGUE (AP) — The Czech government led by populist billionaire Andrej Babiš faced a parliamentary no-confidence vote Tuesday over a ballooning budget deficit and questions about the prime minister’s conflict of interest.
The opposition parties that requested the vote condemned the draft 2027 budget deficit approved by the government at 386 billion koruna, or Czech crowns ($18 billion), the second largest in Czech history. This year’s deficit should
reach 310 billion koruna.
Most economists and opposition parties have criticized the government for proposing such a deficit at a time the country's gross domestic product is expected to grow by 2.7% next year, according to the Czech central bank.
The government said it is necessary to boost investments and its other priorities, such as health care and rises in pensions and public-sector salaries.
Babiš, one of the richest Czechs, has been under fire for not doing enough to avoid a conflict of interest that arises from his private dealings and his political status.
Since he returned to power after his ANO (YES) movement won decisively in October's election, Babiš has moved about 200 of his companies under the Agrofert conglomerate to an independent trust fund to meet the requirements of a conflict of interest law; otherwise, his businesses would not be eligible for state and European Union subsidies.
His investment in the health care sector has not been affected by the move.
The European Commission stated earlier this month that the trust fund does not sufficiently solve the problem, saying Babiš remains in a potential conflict of interest, and suspended some payments to Agrofert.
The opposition has also criticized Babiš for his verbal attacks against independent courts, judges and media.
He has formed a governing coalition with two small political groups whose agenda includes reducing support for Ukraine and rejecting some key European Union policies.
