The Czech government led by Prime Minister Andrej Babiš has held its first regular meeting, at which it adopted a number of politically significant decisions. The cabinet, composed of representatives of ANO, SPD and Motorists, made clear the direction it intends to take in the coming months, both in terms of European policy and in matters of energy, migration and housing.
One of the main points of discussion was the rejection of the ETS 2 emissions trading system. The government opposed its introduction into Czech law, arguing that it would lead to a significant increase in energy and transport costs for households and businesses.
Prime Minister Andrej Babiš said that the cabinet will actively seek support within the European Union for the abolition of this system or at least for a significant reduction in its impact. According to government estimates, higher permit prices could cost citizens hundreds of billions of crowns in the coming years.
Another key decision was to transfer all payments for supported energy sources to the state. In 2026, households and businesses will no longer pay these fees in their electricity bills. According to Minister of Industry and Trade Karel Havlíček, this measure should lead to a reduction in the regulated component of the price of electricity for households by more than 15 per cent, and even more significantly for large consumers. This will burden the state budget with more than CZK 40 billion.
The cabinet also took a clear stance against the EU migration pact. In its resolution, the government declared its rejection of migration quotas and its support for a zero-tolerance policy towards illegal migration. The Minister of the Interior is to prepare a new legislative framework, and according to the government, Czechia will not participate in EU relocation programmes.
The new building law, which has been supported by the government, will also bring significant changes. It introduces centralised building administration, the principle of a single procedure and a single stamp, and is expected to significantly speed up the building permit process. Mass housing projects will now be considered a matter of public interest, which should help address the shortage of flats and high property prices.
The government also agreed to support a freeze on politicians' salaries until 2030 and declared its intention to halt the growth of social security contributions for self-employed persons. The first meeting thus clearly showed that the new cabinet wants to take decisive steps that will have an impact on both citizens' wallets and the Czech Republic's relationship with the European Union.
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