🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire who won the recent Czech election, has declined to sell his extensive business interests, while asserting he will address a ethical dilemma that might block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the autumn vote but lacked a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

“I have consistently said I will never sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakery.”

President's Requirement

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

The national charter “explicitly requires the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when appointing government ministers, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his statutory duties”, the statement said, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Regulatory Issues

Babiš's numerous firms, mostly under the Agrofert group, operate in the nation and other regional countries, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under national legislation, government ministers cannot obtaining state support or agreements. The ethics watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of public office.

Past Tenure and Current Plans

Babiš said he would “follow the laws” if appointed as prime minister, but did not want to detail how in advance because the matter was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into trust funds, while retaining some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Governing Agreement and International Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is expected to strengthen the populist movement in the region and could challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as president has a role for foreign policy, also requested that the government agenda add a declaration on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The president has earlier said he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by nominating non-partisan experts.