🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that won the recent Czech election, has refused to sell his extensive corporate assets, while asserting he will address a conflict of interest that might prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, stated in a social media post that he would not divest his Agrofert group, which is active in agriculture, food production, and chemicals.

“I have consistently stated I will never sell Agrofert. I have consistently said I will resolve the ethical issue in compliance with national and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

President's Requirement

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed premier.

The national charter “explicitly requires the president to take into account the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the announcement added, stating that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Legal Concerns

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

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or stay out of government.

Previous Term and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to explain how in beforehand because the issue was “an extremely sensitive and private affair for me, and the media will invariably criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple 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 judicial body and the EU executive both ruled that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to disclose specifics.

Governing Deal and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for international relations, also demanded that the coalition’s programme include a statement on the official stance on the conflict in Ukraine, including a commitment to fulfilling alliance duties.

The president has previously said he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the far-right SPD has said it will meet by nominating independent technocrats.