🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that won the recent parliamentary vote, has refused to offload his vast business interests, while asserting he will resolve a ethical dilemma that might prevent him from assuming the role of prime minister.

Stance on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a majority in parliament, declared in a social media post that he will not sell his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have consistently said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and European laws,” the billionaire remarked. “This is not like selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will eliminate conflicts of interest stemming from his business activities before assuming the role of prime minister.

The national charter “clearly mandates the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, Pavel's office noted.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, stating that Pavel was ready to appoint Babiš as prime minister “immediately” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under national legislation, government ministers cannot obtaining public aid or agreements. The anti-corruption watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse public contracts, or not enter public office.

Past Term and Current Plans

Babiš said he would “follow the laws” if appointed 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 initial tenure as premier, from 2017 to 2021, Babiš encountered several legal battles and an European inquiry over possible conflicts of interest. He placed his assets into trust funds, while retaining some influence over them.

A judicial body and the European Commission both determined that this did not suffice. Babiš confirmed recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Governing Deal and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist movement in central and eastern Europe and might strain western support for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for international relations, also requested that the coalition’s programme include a declaration on the government’s position on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has earlier said he would not endorse any cabinet candidates who might question the nation's EU and Nato commitments, a condition that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.