Page 7 - CE Outlook Regions 2023

1.0 Political outlook

1.1 Politics - Czech Republic

Czechia’s centre-right cabinet of five parties was formed on the basis of
opposition to the previous minority cabinet of populist billionaire Andrej
Babis, which was narrowly ousted after the October 2021 general
elections.

The five-party coalition led by Prime Minister Petr Fiala of the neoliberal
ODS secured a vote of confidence in January 2022 amid arguably the
most challenging circumstances since the fall of communism in 1989. It
already faced the continuing COVID-19 pandemic and rising inflation
and a ballooning budget deficit; just a little over a month later its agenda
of budgetary austerity was ripped up by the Russian invasion of Ukraine
as energy prices soared.

In response to the invasion, Czechia decoupled from Russian energy
and business ownership ties, provided some 467,000 Ukrainians –
largely women, children, and the elderly – with refuge during 2022, and
established itself as one of the most active countries in the EU in
providing military assistance to Ukraine. According to the interior
minister, altogether 622,855 Ukrainians have registered with Czech
foreign police, with the balance moving on to other countries or returning
to Ukraine.

This improved its image internationally, particularly after it held the EU
rotating presidency throughout the second half of 2022. Setbacks such
as the double standard in the treatment of Roma Ukrainians or
corruption probes involving justice minister Pavel Blazek of the ODS or
the “Dozimetr” kickback scheme inside the Mayors party (which forced
the education minister Petr Gazdik to resign) remained primarily a
matter of domestic politics.

One of the most important events on Czechia’s political map of 2023 is
scheduled for January when presidential elections will be held, with the
first round on January 13-14 and the second round two weeks later.
Under the Czech constitution the incumbent Milos Zeman cannot run for
a third term and Prague Castle will be taken over by a new head of state
after Zeman’s term ends in March.

7 CE Outlook 2023 www.intellinews.com