🔗 Share this article

Andrej Babiš, the self-styled billionaire that secured victory in last month's parliamentary vote, has refused to offload his extensive business interests, while asserting he will resolve a conflict of interest that could prevent him from taking the role of prime minister.

Position on Corporate Empire

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

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

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly populist must publicly explain how he will eliminate conflicts of interest arising from his corporate dealings before being appointed prime minister.

The national charter “clearly mandates the head of state to consider the potential occurrence of a conflict of interest and the possibilities for its resolution” when selecting government ministers, Pavel's office noted.

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 prime minister “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert group, operate in the nation and other central European states, benefiting from millions of euros in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members are barred from obtaining public aid or contracts. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or not enter public office.

Previous Term and Current Plans

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

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential ethical issues. He placed his assets into trust funds, while keeping some influence over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated recently 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.

Coalition Deal and International Implications

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for 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 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 has a role for foreign policy, also demanded that the government agenda include a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has earlier stated he would not approve any cabinet candidates who might doubt the Czech Republic’s international alliances, a condition that the far-right SPD has indicated it will satisfy by nominating independent technocrats.