Prague, Czech Republic—The political landscape in the Czech Republic shifted dramatically on Thursday, November 7, 2025, as President Petr Pavel formally accepted the resignation of Prime Minister Petr Fiala’s cabinet. This move initiates the mandated transition of power following the crushing defeat of Fiala’s five-party coalition in the October parliamentary elections. The resignation clears the path for former Prime Minister Andrej Babiš and his populist ANO party to return to government, marking a significant pivot in Central European politics.
Fiala’s center-right administration will continue operating in a caretaker capacity until the newly formed cabinet is officially sworn in. The constitutional process accelerated after ANO, which secured a decisive victory in the recent polls, successfully finalized a coalition agreement last week. Andrej Babiš received the formal invitation from President Pavel to begin assembling his new government, which reportedly includes the right-wing Freedom and Direct Democracy (SPD) party and the regional Motorists grouping.
Navigating the Transition
During the resignation ceremony at Prague Castle, President Pavel offered public commendation to the outgoing government. He lauded Fiala’s team for their efforts in managing domestic and geopolitical challenges throughout what was described as an exceptionally “demanding term.” Fiala, acknowledging the complexities of the current political environment, assured the public that his interim administration is committed to facilitating a seamless and orderly handover of responsibilities.
The handover process is crucial for maintaining governmental continuity, especially concerning crucial fiscal policy decisions and ongoing international commitments within the European Union and NATO. For the incoming Babiš administration, the immediate challenge will be translating the disparate priorities of the three coalition partners—ANO, SPD, and the Motorists—into a cohesive governing platform.
Implications of Babiš’s Return
The return of Andrej Babiš signals a potential shift back towards a more populist and Eurosceptic political stance, which has characterized his previous tenure. ANO, standing for Action of Dissatisfied Citizens, campaigned heavily on anti-establishment platforms and promises of increased social spending, resonating strongly with voters grappling with rising costs of living.
Analysts suggest the inclusion of the SPD, known for its strong anti-immigration rhetoric and staunch opposition to EU integration, could complicate Prague’s relationships with Brussels. However, the coalition formation demonstrated Babiš’s political dexterity in achieving the necessary parliamentary majority to govern.
For European observers, the focus will now turn to the specific appointments within the new cabinet and how Babiš prioritizes domestic reform versus engagement with the European Union. A smooth, professional transition, as promised by Fiala, remains vital for ensuring investor confidence and political stability in the Czech Republic moving forward. The swearing-in of the new Babiš government is expected to take place in the coming weeks, officially closing the chapter on Fiala’s brief but challenging term.