🔗 Share this article

Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has refused to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that could prevent him from assuming the position of prime minister.

Stance on Business Holdings

Babiš, whose political movement came first in the October election but lacked 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 consistently said I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in accordance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the president to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was prepared to designate Babiš as premier “without delay” once the issue was settled.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other central European states, receiving millions of euros in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office.

Previous Term and Current Intentions

Babiš said he would “abide by the laws” if appointed as prime minister, but did not want to detail how in advance because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably question me regardless”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several court cases and an EU investigation over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to avoid a ethical problem, but declined to reveal specifics.

Governing Deal and International Implications

The billionaire populist has concluded a coalition agreement 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 new government, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme add a declaration on the official stance on the conflict in Ukraine, with a commitment to meeting Nato obligations.

The head of state has earlier stated he would not approve any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will meet by proposing non-partisan experts.