Pandora Papers a worry for Czech PM before election

Czech Prime Minister Andrej Babis has been hit by yet another scandal as he heads for parliamentary elections at the end of this week. He's been named in the so-called "Pandora Papers," a global media investigation into how hundreds of the world's rich and powerful elites have used offshore accounts to shield assets from tax authorities.

In 2009, Babis put $22 million into shell companies to buy a chateau and other properties in southern France, the investigation found. This was not disclosed in Babis' required asset declarations, according to documents obtained by the investigative group's Czech partner, Investigace.cz.

Babis has repeatedly denied any wrongdoing and says the revelation is aimed at harming his chances of re-election. The billionaire leader has had a turbulent term with numerous scandals behind him, but all public polls suggest his centrist ANO ("Yes") movement will win the ballot.

Five opposition parties with policies closer to the European Union's mainstream put aside their differences to create two coalitions aimed at ousting Babis - a Euro-sceptic - from power. Babis bet on an aggressive populist campaign, making migration a major topic and inviting Hungary's anti-immigration leader Viktor Orban to one of his election rallies.

Not a single illegal migrant will be allowed to enter the Czech Republic, Babis promised his voters. He accused the opposition of inviting refugees into the country, although he provided no evidence for this. He pledged to protect the Czechs from an EU that allegedly wants to destroy the country's sovereignty. The EU's plan to tackle climate change would harm the Czech way of life, he said.

And he increased pensions more than required by law, targeting his key group of voters, and lowered income tax amid a record deficit caused by the pandemic, a move that worries economists. Babis, 67, stands a good chance of retaining power, polls say. For his opponents, the main challenge is to stay united. The center-right Spolu ("Together") coalition consists of conservative Civic Democratic Party and Christian Democrats and liberal-conservative TOP 09.

There's also a center-left coalition formed by the liberal Pirate Party and STAN, a grouping of mayors and independent candidates. Despite differences of view on many issues, including climate change, gay marriage and the adoption of the euro currency, the two coalitions support EU and NATO membership and have pledged to rule together if they secure enough votes. Outside the two opposition coalitions is the far-right Freedom and Direct Democracy (SPD), regarded as the most anti-migrant, anti-Muslim party in the country. It wants to lead the Czech Republic out of the EU and NATO and ban Islam.

Its leader Tomio Okamura has condemned the government for allowing 170 Afghan nationals into the country, including local staff who worked for Czech diplomats and soldiers in Afghanistan. Babis has been ruling with a minority coalition government with the leftist Social Democrats with support from the Communists, giving the far-left party an indirect share of power for the first time since 1989.

As both the Social Democrats and Communists might struggle to win any parliamentary seats at all, Babis may choose to form a coalition with the far-right. The question then will be whether his anti-immigration and anti-EU rhetoric during the campaign is translated into "real politics", says political analyst Vit Dostal of the Association for International Affairs think-tank. Voting takes place on Friday and Saturday.