🔗 Share this article

Andrej Babiš, the self-styled billionaire who secured victory in the recent Czech election, has refused to offload his extensive corporate assets, while insisting he will address a conflict of interest that could block him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn vote but lacked a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which operates in farming, food production, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakery.”

President's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must publicly explain how he will eliminate ethical conflicts stemming from his business activities before being appointed premier.

The national charter “clearly mandates the president to consider the possible emergence of a conflict of interest and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

Babiš's numerous companies, mostly under the Agrofert group, operate in the nation and other central European states, receiving substantial funds 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 agreements. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline government deals, or not enter government.

Past Term and Current Plans

Babiš affirmed he would “follow the laws” if selected as premier, but did not want to detail how in beforehand because the issue was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while keeping some influence over them.

A court and the EU executive both ruled that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal specifics.

Governing Deal and International Consequences

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The new government, if confirmed, is likely to bolster the populist bloc in the region and might strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president shares responsibility for foreign policy, also requested that the government agenda add a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the ultra-conservative party has indicated it will meet by nominating independent technocrats.