🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has declined to sell his extensive corporate assets, while asserting he will resolve a conflict of interest that might block him from taking the role of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October election but did not secure a parliamentary majority, declared in a social media post that he will not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have repeatedly said I will never sell Agrofert. I have repeatedly stated I will address the conflict of interest in accordance with Czech and EU regulations,” Babiš commented. “This is not like selling a roll in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will remove conflicts of interest stemming from his corporate dealings before assuming the role of premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing government ministers, Pavel's office noted.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert umbrella, function in the nation and other central European countries, benefiting from substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under Czech law, cabinet members cannot receiving state support or contracts. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline government deals, or stay out of government.

Past Tenure and Present Plans

Babiš said he would “abide by the laws” if selected as premier, but did not want to explain how in advance because the issue 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 court cases and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into trust funds, while keeping certain control over them.

A court and the EU executive both ruled that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but refused to reveal details.

Coalition Agreement and International Consequences

The wealthy politician has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a public vote on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to bolster the populist movement in the region and might challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president shares responsibility for international relations, also requested that the government agenda include a declaration on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

The head of state has previously said he would not endorse any cabinet candidates who might question the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will meet by proposing non-partisan experts.