Czech Budget Woes: What's Next After the Election?

The recent election in Czechia has stirred up some financial concerns. Andrej Babis, leader of the victorious ANO party, has hinted that the country's budget deficit might be larger than expected. He pointed out that around 60 billion Czech crowns are missing for planned projects, like road construction. Without this funding, these projects might have to wait. The outgoing government had planned a deficit of 286 billion crowns for 2026, up from 241 billion in 2025. Babis believes this increase might not be enough, as there are already planned projects that need funding. He stated that the deficit will likely be higher unless they find another solution. The Finance Ministry, however, stood by the current budget, saying it follows all the rules and reflects the outgoing government's priorities. They didn't comment on Babis' concerns about the unfunded plans.Babis is currently in talks to form a new government with two smaller parties. One of these parties wants to reduce the deficit significantly. Even if they succeed, the new government can't start work before November. This leaves little time to adjust the 2026 budget before the end of the year. An expert from ANO suggested that the country might start 2026 with a temporary budget. This would mean spending at 2025 levels, limiting the government's flexibility. The current government has managed to keep the deficit below the EU's 3% limit. They expect a 1. 9% deficit this year. The higher deficit expected for 2026 is mainly due to costs for a new nuclear power plant and the end of a special tax on energy companies.