🔗 Share this article

Andrej Babiš, the self-styled tycoon who won the recent Czech election, has declined to sell his extensive business interests, while asserting he will address a conflict of interest that could prevent him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but did not secure a majority in parliament, declared in a social media post that he will not divest his Agrofert group, which is active in farming, food production, and chemicals.

“I have consistently stated I will never sell Agrofert. I have repeatedly stated I will resolve the ethical issue in accordance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of prime minister.

The national charter “explicitly requires the head of state to consider the possible emergence of a ethical issue and the ways to address it” when selecting government ministers, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was settled.

Business Operations and Legal Issues

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the nation and other central European countries, receiving millions of euros in national and EU farming and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving state support or contracts. The anti-corruption watchdog Transparency International has stated that to prevent a ethical breach, Babiš must either divest, refuse government deals, or stay out of government.

Previous Tenure and Current Intentions

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

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an European inquiry over possible ethical issues. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A judicial body and the European Commission both determined that this was insufficient. Babiš stated recently that he was once more the sole owner of Agrofert and maintained he was “taking steps” to prevent a conflict of interest, but declined to reveal details.

Governing Agreement and Foreign Policy Consequences

The wealthy politician has signed a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s Green Deal.

The new government, if approved, is likely to bolster the populist bloc in central and eastern Europe and could strain western support for Ukraine – although Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for international relations, also requested that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has earlier stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will meet by proposing non-partisan experts.