🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that secured victory in last month's Czech election, has declined to sell his extensive corporate assets, while insisting he will address a conflict of interest that might block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, declared in a social media post that he will not sell his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with national and EU regulations,” Babiš commented. “This is different from selling a roll in a bakery.”

President's Requirement

The head of state, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest arising from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the president to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the announcement added, noting that Pavel was prepared to appoint Babiš as prime minister “immediately” once the matter was resolved.

Corporate Activities and Legal Issues

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the nation and other central European countries, benefiting from millions of euros in national and EU agricultural and other grants, as well as public contracts.

Under Czech law, cabinet members are barred from receiving state support or agreements. The anti-corruption organization Transparency International has indicated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter government.

Previous Term and Current Plans

Babiš affirmed he would “follow the laws” if selected as premier, but declined to detail how in beforehand because the issue was “an highly personal and personal matter for me, and journalists will invariably criticise me anyway”.

During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over potential ethical issues. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but declined to reveal specifics.

Coalition Deal and Foreign Policy Consequences

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

The new government, if approved, is expected 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 the nation's backing.

Pavel, who as president has a role for international relations, also requested that the government agenda include a statement on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The head of state has previously stated he would not approve any ministerial nominees who might question the nation's international alliances, a condition that the far-right SPD has said it will satisfy by nominating independent technocrats.