The new Czech minority government led by populist billionaire Andrej Babis has failed to win a mandatory confidence vote in the lower house of Parliament and has to resign.

Tuesday's loss was expected because the government lacks a majority.

Babis' ANO (YES) centrist movement won October's parliamentary elections with 78 seats in the 200-seat house. His government was appointed in December.

But none of the eight other parties that holds parliamentary seats has agreed to create a coalition government with ANO because they consider Babis unsuitable to lead the government due to fraud charges he has been facing linked to EU subsidies.

President Milos Zeman, Babis' ally, said he would ask him to form a government again.

Any new government still has to win a parliamentary confidence vote to rule.