🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire that won the recent Czech election, has refused to offload his vast business interests, while asserting he will address a conflict of interest that could prevent him from taking the role of prime minister.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn election but lacked a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently stated I will not sell Agrofert. I have repeatedly said I will address the ethical issue in accordance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the possibilities for its resolution” when appointing government ministers, the presidential administration explained.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement added, stating that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the nation and other regional countries, 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 state support or contracts. The ethics watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or stay out of public office.

Previous Tenure and Present Intentions

Babiš said he would “follow the regulations” if selected as premier, but did not want to detail how in advance because the matter was “an highly personal and private affair for me, and the media will always criticise me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš confirmed recently that he was again the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Governing Agreement and International Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The incoming administration, if approved, is expected to strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for international relations, also demanded that the coalition’s programme include a declaration on the official stance on the conflict in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has earlier stated he would not approve any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.