🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that secured victory in the recent Czech election, has refused to sell his vast business interests, while asserting he will address a conflict of interest that could prevent him from taking the position of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, declared in a online statement that he would not divest his Agrofert group, which is active in farming, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with national and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of premier.

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 precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, function in the Czech Republic and other regional countries, benefiting from millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or contracts. The ethics organization Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Previous Tenure and Current Intentions

Babiš affirmed he would “follow the laws” if selected as prime minister, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will always question me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible ethical issues. He placed his holdings into trust funds, while retaining some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to reveal specifics.

Governing Agreement and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

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

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling alliance duties.

The president has earlier said he would not approve any ministerial nominees who might question the nation's international alliances, a condition that the ultra-conservative party has indicated it will meet by proposing independent technocrats.