Report

Police recommend PM Babis should be indicted in Stork Nest case

- Case now goes to prosecutor's office, which should decide whether to formally indict Babis
- Babis's involvement is due to his capacity to influence approval of the EUR 2mn EU subsidies that Stork Nest got
- CSSD stands with Babis for now, party president Hamacek says coalition would end only if Babis is convicted
- We are not certain other senior CSSD members share Hamacek's view, like labour minister Malacova or foreign minister Petrisek
- Opposition wants Babis to resign if indicted, we do not rule out another vote of no confidence
- We expect cabinet to remain stable as long as CSSD supports it; we don't see Babis losing a lot of voters, as they have proven resilient
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