🔗 Share this article

Andrej Babiš, the self-styled tycoon who secured victory in last month's parliamentary vote, has declined to sell his extensive business interests, while insisting he will resolve a ethical dilemma that might block him from assuming the position of head of government.

Stance on Corporate Empire

Babiš, whose ANO party came first in the October election but did not secure a majority in parliament, declared in a online statement that he would not sell his Agrofert group, which operates in agriculture, food production, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will address the ethical issue in accordance with Czech and EU regulations,” the billionaire remarked. “This is different from selling a roll in a bakery.”

Head of State's Requirement

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

The Czech constitution “clearly mandates the president to take into account the potential occurrence of a ethical issue and the ways to address it” when appointing government ministers, Pavel's office noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was prepared to designate Babiš as prime minister “immediately” once the issue was settled.

Business Operations and Legal Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the nation and other central European states, benefiting from substantial funds in national and EU farming and other grants, as well as government deals.

Under Czech law, government ministers are barred from obtaining public aid or contracts. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline government deals, or stay out of government.

Past Term and Current Intentions

Babiš affirmed he would “follow the laws” if appointed as prime minister, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and the media will invariably question me regardless”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while keeping some influence over them.

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

Governing Agreement and Foreign Policy Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if confirmed, is expected to bolster the populist movement in the region and might challenge backing from Western nations for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state has a role for international relations, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, including a pledge to fulfilling Nato obligations.

The head of state has earlier stated he would not endorse any cabinet candidates who might doubt the nation's international alliances, a condition that the ultra-conservative party has said it will meet by proposing independent technocrats.