🔗 Share this article

Andrej Babiš, the self-styled billionaire who won last month's parliamentary vote, has refused to sell his vast corporate assets, while asserting he will resolve a ethical dilemma that could prevent him from taking the position of prime minister.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the autumn election but lacked a majority in parliament, stated in a online statement that he would not sell his Agrofert group, which is active in agriculture, food processing, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with Czech and European laws,” Babiš commented. “This is not like selling a roll in a bakeshop.”

President's Demand

The head of state, Petr Pavel, stated that the elderly populist must clarify openly how he will remove conflicts of interest arising from his corporate dealings before assuming the role of prime minister.

The national charter “explicitly requires the president to take into account the possible emergence of a conflict of interest and the ways to address it” when appointing cabinet members, Pavel's office noted.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement added, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's numerous firms, mostly under the Agrofert umbrella, function in the nation and other regional states, benefiting from millions of euros in national and EU agricultural and other subsidies, as well as public contracts.

Under national legislation, government ministers are barred from obtaining state support or contracts. The anti-corruption organization Transparency International has stated that to avoid a ethical breach, Babiš must either sell, decline public contracts, or not enter public office.

Past Term and Present Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an highly personal and private affair for me, and the media will always question me regardless”.

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

A court 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 “taking steps” to avoid a ethical problem, but declined to disclose details.

Coalition Deal and Foreign Policy Implications

The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to bolster the populist bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as president has a role for foreign policy, also requested that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to meeting Nato obligations.

The president has earlier said he would not endorse any ministerial nominees who might doubt the Czech Republic’s EU and Nato commitments, a condition that the ultra-conservative party has indicated it will satisfy by proposing independent technocrats.