🔗 Share this article

Andrej Babiš, the self-styled billionaire who secured victory in the recent parliamentary vote, has refused to offload his vast corporate assets, while insisting he will resolve a conflict of interest that might block him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn election but lacked a majority in parliament, declared in a online statement that he would not sell his Agrofert group, which is active in agriculture, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have repeatedly said I will resolve the ethical issue in compliance with national and European laws,” Babiš remarked. “This is different from selling a pastry in a bakeshop.”

President's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will remove ethical conflicts arising from his business activities before being appointed prime minister.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, Pavel's office explained.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was ready to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, function in the Czech Republic and other central European countries, benefiting from millions of euros in domestic and European farming and other subsidies, as well as government deals.

Under Czech law, government ministers cannot obtaining public aid or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline government deals, or not enter government.

Past Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but declined to detail how in advance because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both ruled that this was insufficient. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to avoid a ethical problem, but declined to reveal specifics.

Coalition Deal and International Consequences

The wealthy politician has signed a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in central and eastern Europe and could strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also requested that the government agenda add a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has previously said he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has said it will meet by proposing independent technocrats.