PRAGUE (Reuters) -Czech election winner Andrej Babis' ANO party signed a coalition deal with fringe right-wing allies on Monday, another step towards his return to power after four years in opposition
Czech Billionaire Babis Unveils New Coalition Government Plans
Key Policy Points of the New Coalition
PRAGUE (Reuters) -Czech election winner Andrej Babis' ANO party signed a coalition deal with fringe right-wing allies on Monday, another step towards his return to power after four years in opposition.
Foreign and EU Policy
The following are the main policy points agreed by ANO with its coalition partners: the Motorists party, which is sceptical about climate change, and the SPD party, which is against the EU and NATO.
FOREIGN AND EU POLICY
* No transfer of more power to EU from national level
* No weakening of unanimity principle, where all EU states have to agree any policies or changes
* Strengthen ties with Slovakia, Hungary and Poland
* Support "diplomatic steps leading to an end to the war in Ukraine and the elimination of the risks of war in Europe"
* EU Green Deal in current form is unsustainable
* Ban on combustion engines from 2025 is unacceptable
* Prepared not to implement ETS2 system of emission allowances for households and transport
* Reject EU migration pact
* Retain close Israel ties and strengthen U.S. relationship
Fiscal Policy
FISCAL POLICY
* Maintain budget deficits "safely" below 3% of GDP ceiling set by EU
* Not raise any taxes
* Cut corporate tax to 19% from 21%
* Reinstate certain tax discounts and benefits for families, increase parental allowance
* Mortgage subsidies for young families
* Raise wages, especially for new teachers, soldiers, police and firefighters
* Make savings in state operations
* Will not take steps to adopt euro, plan to "anchor" crown currency in constitution
* Cap retirement age at 65, reversing reform of previous government allowing it to rise gradually in coming decades
Defense Initiatives
DEFENCE
* Make air and anti-drone defence a priority
* Increase number of professional soldiers, no number given
* No mention of new NATO commitments to raise spending to 5% of GDP in coming years through direct military and infrastructure spending
* No specific mention of Russia as a threat
Energy Policies
ENERGY
* Ensure affordable energy prices, reduce distribution and transmission fees, support nuclear energy
* State will pay renewable energy subsidies costs currently paid by consumers in power bills
* Take steps to gain 100% control in majority state-owned utility CEZ through CEZ buyback, not state budget spending
* Continue work on new nuclear power blocks at the Dukovany plant and further projects including small modular reactors
* Accelerate construction of flexible energy sources, especially gas, using financial aid through capacity mechanism
* Maintain some coal-fired plants through state aid to avoid power shortages, with no mention of a phase-out date as planned by previous government
Media and NGO Regulations
MEDIA AND NGOS
* Cancel fees for public television and radio and move financing to state budget, while keeping their independence
* Prepare legal changes to update definition of public service media, make savings
* Non-governmental organisations cannot get state funds for "political activism"; "Political" NGOs will have to report foreign funding
(Reporting by Jan Lopatka and Jason Hovet; Editing by Andrew Heavens)
