🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has refused to offload his extensive business interests, while asserting he will resolve a ethical dilemma that might block him from assuming the position of prime minister.

Position on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a majority in parliament, stated in a social media post that he will not sell his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire commented. “This is not like selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before assuming the role of premier.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's several hundred firms, primarily under the Agrofert umbrella, operate in the Czech Republic and other regional countries, receiving substantial funds in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from receiving state support or agreements. The ethics watchdog Transparency International has indicated that to prevent a ethical breach, Babiš must either sell, decline government deals, or not enter public office.

Previous Tenure and Current Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to explain how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will invariably criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Coalition Deal and Foreign Policy Consequences

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is expected to strengthen the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has said it will meet by nominating independent technocrats.