Report
Inna Mufteeva

Local Elections in Czech Republic: The Rise of Eurosceptic Populism

The recent regional and Senate elections in Czechia, held in September 2024, signaled potential challenges for the ruling five-party coalition as the opposition right-wing populist party ANO 11 secured almost 43% of the regional council seats, while the Civic Democratic Party (ODS) led by Prime Minister Petr Fiala came in second with 16% . Meanwhile, the current ruling coalition managed to maintain a strong majority in the Senate. Yet, the elections results reflect strong public discontent with the current government performance mainly stemming from economic issues like past inflation surge and the ongoing budget consolidation with rather controversial austerity package (tax increases and the pension system reform). The floods that impacted Central Europe in mid-September also contributed to the opposition support, particularly in the affected areas like Northern Moravia. While this year ’ s elections do not threaten the government’s position, ANO’s potential return to power after the 2025 Parliamentary election might put a stop to the fiscal discipline of the past years . Indeed, during its tenure in 2017 - 2021, the ANO government implemented fiscally loose policies that enhanced social welfare but ultimately resulted in a bigger budget deficit, which the current government is now addressing through consolidation measures. In addition, ANO party 's resurgence aligns with a broader trend of rising E urosceptic populist ideologies .
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Inna Mufteeva

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