Czech Republic – The President and a protracted government formation process

Although the 2017 parliamentary elections took place some six month ago, the Czech Republic still lacks a fully fledged cabinet. The country is currently run by a partisan caretaker cabinet led by Andrej Babiš, the leader of the largest parliamentary party, ANO (“ANO” means “yes” in Czech). His cabinet, which was appointed in December 2017, failed to receive a vote of confidence in the January 2018 parliamentary vote. In line with the Constitution, President Zeman authorized Babiš’ cabinet to carry out governmental functions until a new cabinet is appointed. At the same time, he gave Mr. Babiš a long time horizon (until the end of June) to form a new cabinet which would enjoy parliamentary confidence. Given the strong presidential powers in the government formation process, President Zeman (along with Andrej Babiš) became a central figure of this process.

As far as the government formation negotiations are concerned, there is a paradox. ANO is a pragmatic centre-oriented populist movement that lacks a clear ideological profile. Instead, it is characterized by bowing both to the right and to the left and flexibly changing its policies. This flexibility gives ANO a great coalition potential. Indeed, ANO has been able to negotiate with almost all parliamentary parties. That said, ANO has failed to win support for its minority cabinet or generate a majority coalition cabinet. This puzzle can be explained by the very fact that Mr. Babiš, the leader and also the de facto owner of the ANO movement (ANO is a prime example of a business-firm party), faces a number challenges, including a police investigation of his business, his past co-operation with the former Communist secret police, and allegations of instructing political journalists of the media he owns. In addition, Andrej Babiš finds himself with a considerable clash of interests, because he is the owner of the Agrofert group, one of the largest business conglomerates in the country, owing various agricultural, food processing, and chemical companies. Agrofert is also the largest beneficiary of various state subsidies. Most parties are willing to co-operate with ANO, if Mr. Babiš stays outside the future cabinet. However, ANO insists that Mr. Babiš is its only candidate for the role of prime minister, which is understandable given the fact that ANO comes close to the ideal of one-man party.

Andrej Babiš can also rely on almost unconditional support from President Miloš Zeman. This pragmatic alliance between Miloš Zeman and Andrej Babiš (including their political styles, policies and rhetoric) brought thousands of people onto the streets of many cities across the Czech Republic in spring 2018. The protesters showed their anger with both figures and also with the rising importance of the Communist Party of Bohemia and Moravia (KSČM), the legal and ideological successor of the former Communist Party of Czechoslovakia. The party has recently increased its influence upon the executive, because it is likely to support Babiš’s future cabinet. The party has not been in government since the 1989 Velvet revolution and no cabinet has so far been reliant on the votes of the Communists. This stable feature of the Czech politics seems to be coming to an end. In symbolic terms, this shift can be illustrated by the fact that Miloš Zeman attended the KSČM party congress in April 2018, whereas his two predecessors in the presidential office, Václav Havel and Václav Klaus, never did so.

The most probable shape of the future cabinet appears to be a minority coalition by ANO and the Czech Social Democratic Party (ČSSD), supported by KSČM, which is the option that was also supported by Miloš Zeman. ČSSD is heavily influenced by Miloš Zeman, who was the social democratic PM between 1998 and 2002 and who encouraged the party to join an ANO-led coalition. The party is still badly divided on the issue of joining the coalition with ANO. However, in spring 2018 the party’s congress elected its new chairman and vice-chairmen, who are supportive of co-operation with Mr. Babiš on condition that ČSSD would get four seats in the cabinet plus the Ministry of Interior to keep an eye on “neutral” police investigation related to Babiš’ alleged fraud of a two million euro EU subsidy. ČSSD also insists that if a government member (in fact M. Babiš) is convicted of a crime by a court, he will be obliged to resign from the cabinet. Mr. Babiš eventually accepted the former condition, but he strongly rejects the latter.

Andrej Babiš has also considered a minority ANO cabinet supported not only by KSČM, but also by a radical-right wing populist movement “Freedom and Direct Democracy” (SPD) led by a political entrepreneur Tomio Okamura, whose party has called for a “Czexit” (i.e. Czech Republic’s withdrawal from the EU), has pushed for a Czexit referendum, and has a strong anti-immigration rhetoric, which has made its critics call the movement “fascist”.  However, the idea of the ANO-led cabinet supported by SPD and KSČM was eventually rejected by ANO’s leading figures.

When it comes to the most important events of the second Zeman’s term, one can identify a consistent pattern. He keeps polarizing the Czech society. In his inaugural speech, he harshly attacked Czech quality media, including the Czech television, which is generally considered one of the most reliable sources of information in the Czech Republic and which is modelled on the BBC. Furthermore, Miloš Zeman has kept supporting Russia and Vladimir Putin. This peaked at his speech in the Council of Europe towards the end of his first mandate in October 2017. At that time he said that the annexation of Crimea was a fait accompli and that European countries should look for alternative solutions to the crisis, such as Ukraine getting financial compensation for Crimea from Russia, or free deliveries of crude oil or natural gas. Such a position clearly diverges from the government’s position and displeased Ukraine.

In March 2018 the Novichok nerve agent was used to try to kill former GRU officer Sergei Skripal and his daughter Yulia in the UK. British representatives have accused Russia of this act. Russia denied the allegations and argued that the nerve agent could have been produced in the Czech Republic. Although Prime Minister Babiš dismissed the Russian claim, Miloš Zeman asked the Czech counter-intelligence service to look for the Novichok agent. This led to a couple of Czech parliamentary parties to accuse Zeman of high-treason and of serving the interests of Russia against the interest of the Czech Republic. In relation to the Novichok scandal, a large number of (not only) European countries, including the Czech Republic, expelled Russian diplomats, but Miloš Zeman did not support this move.

Another controversy over Zeman’s foreign policy was also related to Russia. In spring 2018 Zeman lobbied the Minister of Justice for the extradition of Yevgeniy Nikulin to Russia, who had filed for his extradition on the grounds of a petty online theft. The suspected Russian hacker was, however, extradited to the United States, where he was charged with hacking American firms such as LinkedIn and Dropbox. The media speculated that Nikulin might have some details on Russia-sponsored cyber-attacks on the USA. As a reaction, Zeman’s chancellor to the president, Vratislav Mynář, called the minister‘s decision “unlawful”.

President Zeman also supports Chinese political and economic interests in the Czech Republic. Many observers were taken aback by Zeman’s decision to make Ye Jianming,  Chairman and Executive Director of CEFC China Energy Company Limited (a giant Chinese finance conglomerate with alleged links to Chinese secrete services), his official economic advisor in 2015. Although Zeman highly appreciated Chinese investments in the Czech Republic, they remain only marginally important for the Czech economy. Moreover, Ye Jianming was detained by the Chinese authorities. Ye’s detention in China was probably ordered directly by the Chinese president Xi Jinping. In the past, several CEFC’s representatives were accused of bribery and CEFC was criticized for risky investment projects.

Although these events have clearly cast doubt on Miloš Zeman’s foreign policy, he remains highly popular as some 50% of population trust the President. As for his use of presidential powers in the last six months, Miloš Zeman has respected the dominant position of the caretaker government and has not pushed the limits of his competences. There has been almost no conflict between the president and the government. President Zeman still retains the control over the government formation process. It remains to be seen whether Mr. Babiš will be successful in creating a new cabinet. Even if he fails for the second time (i.e. the Chamber of Deputies will not pass a motion of confidence in his cabinet), the power to appoint a new prime minister passes from the president to the Speaker of the Chamber of Depuites, Radek Vondráček, an ANO member.

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