PRAGUE—Czech Prime Minister Andrej Babis signed a power-sharing agreement on Tuesday that would win parliamentary approval for his minority government by bringing the Communist Party closer to power than it has been since 1989.
The agreement, which had been discussed for months, has inspired recent protests by thousands of people in Prague who are worried about the state of the Czech Republic’s democracy and the political reawakening of a Communist Party that has proposed severing military and economic ties to the West. The...