🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire who won the recent parliamentary vote, has refused to sell his vast business interests, while asserting he will address a ethical dilemma that could prevent him from assuming the role of head of government.

Position on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but did not secure a parliamentary majority, stated in a online statement that he will 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 said I will resolve the conflict of interest in compliance with Czech and European laws,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly 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 ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, operate in the nation and other central European countries, receiving substantial funds in domestic and European farming and other grants, as well as public contracts.

Under national legislation, government ministers are barred from receiving state support or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline government deals, or not enter public office.

Previous Tenure and Present Plans

Babiš said he would “abide by the laws” if appointed as prime minister, but declined to explain how in advance because the matter was “an highly personal and personal matter for me, and the media will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced several legal battles and an EU investigation over potential conflicts of interest. He temporarily moved his assets into trust funds, while keeping certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but declined to reveal specifics.

Governing Agreement and Foreign Policy Implications

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, 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 new government, if confirmed, is expected to bolster the populist movement in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda include a declaration on the official stance on Russia’s war in Ukraine, including a pledge to meeting alliance duties.

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