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Czech Junior Ruling Party Sets Ultimatum for Staying in Cabinet

Czech Junior Ruling Party Sets Ultimatum for Staying in Cabinet

(Bloomberg) -- The Czech Social Democrats set a final condition for staying in the government, prolonging a political crisis that has brought the ruling coalition to the brink of collapse.

The party said Monday it will leave the minority cabinet unless President Milos Zeman appoints their nominee for culture minister. The ultimatum is a culmination of weeks of wrangling and a complication for billionaire Prime Minister Andrej Babis, an ally of Zeman’s who’s refused to rein in the president’s efforts to assert more sway over executive power.

A potential coalition breakup would be a blow for Babis as he is trying to secure budget finances for increased welfare spending and investment at a time of slowing economic growth and anti-government protests. But the departure of his junior partner wouldn’t automatically trigger early elections.

The prime minister has said he would try to rule with the support of other parties, possibly including an anti-immigrant group urging an exit from the European Union, before he endorses a snap ballot.

Social Democrat leader Jan Hamacek urged Babis to use his constitutional power and ensure the appointment of the party’s Deputy Chairman Michal Smarda as the culture minister. The party didn’t set a deadline for the demand.

“Our participation makes sense, but it only makes sense if we can decide on the personnel issues in the government,” Hamacek told reporters in Prague. “I believe that the prime minister will take this matter seriously.”

The government’s most serious crisis to date is increasing pressure on Babis, who faced the biggest anti-government protests since the 1989 fall of communism.

The demonstrations followed a police recommendation that Babis be charged with fraud tied to EU funds, and the bloc’s accusation that he is in conflict of interest. He denies wrongdoing and calls the allegations a plot designed to remove him from power.

The Czech constitution says the president must dismiss ministers at the premier’s request, but it doesn’t give deadlines. Zeman, who was re-elected for his second and final term in 2018, has used such ambiguities to keep Babis in power and carve out a stronger political role for his traditionally ceremonial post.

Zeman said last week he’ll accept the demand to dismiss the culture minister, but he stopped short of accepting the Social Democrat’s nominee to replace him.

To contact the reporters on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net;Peter Laca in Prague at placa@bloomberg.net

To contact the editors responsible for this story: Balazs Penz at bpenz@bloomberg.net, Michael Winfrey, Andrea Dudik

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