🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that won the recent Czech election, has declined to sell his extensive corporate assets, while insisting he will address a ethical dilemma that might prevent him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but lacked a parliamentary majority, declared in a social media post that he will not divest his Agrofert group, which operates in farming, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with Czech and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakery.”

President's Demand

The head of state, Petr Pavel, stated that the 71-year-old populist must publicly explain how he will remove conflicts of interest arising from his business activities before assuming the role of prime minister.

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, Pavel's office noted.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's several hundred companies, primarily under the Agrofert group, function in the nation and other central European states, receiving millions of euros in domestic and European agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The anti-corruption organization Transparency International has indicated that to avoid a conflict of interest, Babiš must either divest, decline government deals, or stay out of public office.

Past Tenure and Present Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to explain how in advance because the matter was “an highly personal and personal matter for me, and journalists will invariably question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over possible ethical issues. He placed his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but refused to disclose specifics.

Coalition Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist bloc in central and eastern Europe and might strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme add a declaration on the official stance on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The president has previously stated he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing independent technocrats.