🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon who secured victory in the recent parliamentary vote, has declined to sell his vast business interests, while insisting he will address a ethical dilemma that could prevent him from taking the role of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but did not secure a majority in parliament, declared in a social media post that he will not sell his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with Czech and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Demand

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

The Czech constitution “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office explained.

The president “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert group, operate in the Czech Republic and other regional states, receiving substantial funds in domestic and European agricultural and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from receiving public aid or contracts. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or stay out of public office.

Past Term and Current Plans

Babiš affirmed he would “follow the laws” if selected as prime minister, but declined to detail how in advance because the issue was “an highly personal and private affair for me, and journalists will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered several court cases and an European inquiry over potential conflicts of interest. He placed his holdings into fiduciary arrangements, while keeping some influence over them.

A court and the European Commission both determined that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to reveal details.

Coalition Agreement and Foreign Policy Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if approved, is likely to bolster the populist movement in the region and could 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 head of state has a role for foreign policy, also requested that the government agenda include a statement on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state 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 said it will meet by nominating non-partisan experts.