🔗 Share this article

Andrej Babiš, the self-styled billionaire that secured victory in the recent Czech election, has refused to offload his extensive business interests, while asserting he will address a ethical dilemma that might prevent him from taking the role of head of government.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn vote but did not secure a parliamentary majority, declared in a online statement that he would not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have consistently stated I will never sell Agrofert. I have consistently stated I will address the conflict of interest in compliance with Czech and European laws,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

Head of State's Demand

The Czech president, Petr Pavel, announced that the elderly populist must publicly explain how he will remove conflicts of interest arising from his corporate dealings before being appointed premier.

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

The head of state “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement added, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert group, function in the Czech Republic and other regional states, receiving millions of euros in domestic and European agricultural and other grants, as well as government deals.

Under Czech law, government ministers are barred from receiving state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or stay out of public office.

Past Tenure and Present Intentions

Babiš affirmed he would “abide by the laws” if selected as premier, but did not want to detail how in advance because the issue was “an extremely sensitive and private affair for me, and the media will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A judicial body and the EU executive both ruled that this was insufficient. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to reveal details.

Coalition Agreement and International Consequences

The wealthy politician has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might challenge western support for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

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

The head of state has earlier stated he would not endorse any ministerial nominees who might question the Czech Republic’s international alliances, a condition that the far-right SPD has said it will meet by proposing independent technocrats.