EXPLAINED: What a new twist in ex-PM’s court case means for Czech politics

Just as Czechia gears up for October’s parliamentary elections, former Prime Minister and head of the best-polling opposition ANO (right-wing, populist) party Andrej Babiš is again facing serious legal troubles in a long-running fraud case. 

A Prague court Monday overturned his earlier acquittal in the infamous Čapí hnízdo (Stork’s Nest) scandal—sending shockwaves through Czech politics. With the current government coalition calling on Babiš to step down from politics, the court decision could have serious implications for the future of the country.

The case centers on a luxury conference center south of Prague known as Čapí hnízdo (Stork’s Nest). Prosecutors allege that in 2007–08, Babiš illegally transferred ownership of the company behind the center from his multi-billion-crown Agrofert conglomerate to his family members. 

This move, they claim, was made to fraudulently qualify for a EUR 2 million (CZK 49.6 million) EU subsidy meant for small and medium-sized businesses—funding that the project wouldn’t otherwise have received. 

Babiš was formally charged with aiding subsidy fraud in 2022, alongside then-aide and current MEP Jana Nagyová. In early 2023, a Prague court acquitted both, citing lack of clear evidence of intent to deceive. 

That ruling was challenged and ultimately overturned in late 2023. However, in February 2024, Babiš was again cleared of any wrongdoing.

On June 23, the Prague High Court once again annulled the acquittal, saying the lower court failed to justify its verdict despite a “careful” process. Judge Eva Brázdilová emphasized the presence of “signs of criminal activity,” meaning the Metropolitan Court must now retry the case in the coming months.

Prime Minister Petr Fiala said Babiš should “resign from all elected positions” and called the court’s view “clear proof” of deception. Chamber of Deputies Speaker Markéta Pekarová Adamová said: “I expect him…to not run in the upcoming elections.”

On the flip side, political scientist at Charles University Josef Mlejnek believes the decision won’t shake ANO’s base: “They have long accepted Babiš’ status.” Analyst Miroslav Mareš agreed, noting the ruling may instead energize Babiš’ critics (think U.S. President Donald Trump).

He calls the case a “politically motivated trial” based on “fabrications.” He accuses prosecutors and judges of bias and says he's being targeted for refusing to cooperate with the traditional political elite. “This is a political attack,” he claimed after the verdict.

The ruling likely won’t sway ANO’s core voters but may hinder Babiš’ coalition prospects. Analyst Lubomír Kopeček says that even if ANO wins, “governing partners may reject a coalition led by someone under ongoing criminal proceedings.”

Opponents are eagerly using the case to rally support, casting Babiš as a liability and framing the election around political accountability. This comes after the government’s own corruption-related scandal over bitcoin, a criminal, and the subsequent resignation of a justice minister.