🔗 Share this article

Andrej Babiš, the self-styled billionaire that won last month's parliamentary vote, has declined to sell his extensive business interests, while insisting he will resolve a ethical dilemma that might prevent him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a parliamentary majority, stated in a online statement that he will not divest his Agrofert group, which is active in farming, food processing, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have repeatedly said I will address the conflict of interest in compliance with Czech and European laws,” the billionaire remarked. “This is different from selling a roll in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate conflicts of interest stemming from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, operate in the nation and other central European states, benefiting from millions of euros in domestic and European agricultural and other grants, as well as public contracts.

Under national legislation, cabinet members cannot obtaining public aid or agreements. The anti-corruption watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either divest, decline public contracts, or not enter government.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as prime minister, but declined to detail how in beforehand because the issue was “an extremely sensitive and private affair for me, and journalists will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his assets into trust funds, while keeping certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was again the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to reveal specifics.

Governing Deal and International Implications

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is expected to strengthen the populist bloc in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also demanded that the government agenda include a declaration on the government’s position on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The president has earlier stated he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will meet by proposing independent technocrats.