🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire who won last month's parliamentary vote, has refused to offload his vast business interests, while asserting he will resolve a ethical dilemma that could prevent him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the autumn election but did not secure a majority in parliament, declared in a online statement that he will not divest his Agrofert group, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with national and European laws,” the billionaire commented. “This is not like selling a roll in a bakery.”

Head of State's Demand

The head of state, Petr Pavel, announced that the elderly populist must publicly explain how he will eliminate ethical conflicts arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration explained.

The president “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the statement said, stating that Pavel was ready to designate Babiš as premier “without delay” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other central European states, receiving substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, government ministers are barred from receiving public aid or contracts. The anti-corruption organization Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, refuse government deals, or stay out of government.

Past Tenure and Current Intentions

Babiš affirmed he would “follow the regulations” if appointed as premier, but declined to detail how in beforehand because the issue was “an highly personal and private affair for me, and the media will invariably criticise me anyway”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple court cases and an EU investigation over possible conflicts of interest. He temporarily moved his assets into trust funds, while keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed recently that he was once more the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Governing Agreement and International Implications

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

The new government, if confirmed, is likely to bolster the populist bloc in central and eastern Europe and could challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also requested that the government agenda include a statement on the government’s position on Russia’s war in Ukraine, including a commitment to fulfilling alliance duties.

The head of state has previously said he would not approve any cabinet candidates who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will meet by nominating independent technocrats.