PRAGUE—A new coalition government took office in the Czech Republic on Friday, with the coronavirus pandemic and soaring inflation presenting immediate policy challenges. President Milos Zeman swore in the Cabinet at the presidential chateaux in Lany, west of Prague, ending the government of his ally, populist billionaire Andrej Babis, as prime minister. Two political coalitions that together collected a majority of parliament seats in the country’s Oct. 8–9 election signed a power-sharing deal to rule together. The new partnership holds 108 seats in the 200-seat lower house, relegating Babis and his ANO (YES) movement to the opposition. ANO narrowly lost the election with 27.1 percent of the vote. A three-party coalition known as Together, composed of the Civic Democratic Party, the Christian Democrats, and the TOP 09 party, came in first with 27.8 percent of the vote. Together has formed a government with a coalition made up of the Pirate …