Babis denies wrongdoing and has called investigations against him a plot by opponents. Despite a slight slide in the latest opinion poll, his populist party, ANO, remains ahead in the polls by a wide margin.

Loading

"I take this initiative as an attempt to destabilise the country," Babis told Parliament before the vote. "We do not want [an early election] and I hope that our government rules until the end of its mandate."

The vote gives Babis temporary respite but he will face more pressure.

The Social Democrats backed Babis but their relationship with him has been increasingly fragile, and a number of party officials have threatened to leave the cabinet.

On Sunday, more than a quarter of a million people demanded that Babis quit at the biggest public protest in the country of 10.7 million since the end of communist rule in 1989.

Prosecutors are weighing whether to force him to stand trial over accusations that he cheated to win a €2 million ($3.2 million) European subsidy for a hotel and conference centre a decade ago.

Around year-end, the European Commission will also finalise audits into his companies. Preliminary findings show conflicts of interest and illegal aid from the EU flowing to some of his former firms.

The EU audit could be a headache for Babis if it means his former chemicals, food, media and farming empire, which employs more than 30,000 people, has to return some past EU aid, and loses access to future funding.

A snap election is not a likely scenario but analysts say Babis, if pressed, may decide to step aside and nominate a loyalist colleague as prime minister. In that case, he could continue as the decision-maker behind the scenes.

Such a scenario would satisfy the main demand of the opposition and protesters.

Babis's ouster or resignation would make President Milos Zeman the key power broker, as he appoints the prime minister. He has said he would give Babis another mandate, and in the past said he would prefer an ANO alliance with the Communists as well as the far-right, anti-European Freedom and Direct Democracy (SPD) party.

Reuters