The latest polling ahead of the Czech parliamentary election this weekend suggests that the right-wing populist opposition party, ANO, will gain the highest share of votes and may form a coalition with more extreme anti-EU parties. That would raise concerns about relations with Brussels and probably result in a looser fiscal stance. While Czechia’s public finances are starting from a position of strength, this outcome could put upward pressure on bond yields and downward pressure on the koruna.
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