🔗 Share this article

Andrej Babiš, the self-styled tycoon that secured victory in the recent parliamentary vote, has refused to sell his extensive business interests, while asserting he will resolve a conflict of interest that could prevent him from taking the position of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a parliamentary majority, declared in a social media post that he will not sell his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly said I will address the ethical issue in compliance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the 71-year-old political figure must publicly explain how he will remove conflicts of interest stemming from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a conflict of interest and the ways to address it” when selecting cabinet members, Pavel's office explained.

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

Corporate Activities and Legal Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the nation and other central European countries, receiving millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot obtaining public aid or contracts. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Previous Tenure and Current Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but did not want to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and journalists will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A judicial body and the European Commission both ruled that this was insufficient. Babiš confirmed last month that he was again the sole owner of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but refused to reveal specifics.

Governing Agreement and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist movement in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, 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 government’s position on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The president has earlier said he would not approve any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.