🔗 Share this article

Andrej Babiš, the self-styled billionaire who won last month's parliamentary vote, has refused to sell his extensive corporate assets, while asserting he will resolve a ethical dilemma that could block him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but did not secure a majority in parliament, declared in a online statement that he will not sell his Agrofert group, which operates in agriculture, food processing, and chemicals.

“I have repeatedly stated I will not sell Agrofert. I have consistently stated I will address the conflict of interest in accordance with Czech and European laws,” Babiš commented. “This is different from selling a pastry in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must publicly explain how he will remove ethical conflicts stemming from his corporate dealings before assuming the role of premier.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a conflict of interest and the ways to address it” when appointing cabinet members, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Legal Concerns

Babiš's numerous companies, primarily under the Agrofert group, operate in the Czech Republic and other regional countries, receiving millions of euros in domestic and European farming and other grants, as well as public contracts.

Under national legislation, cabinet members cannot receiving public aid or contracts. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Past Term and Present Plans

Babiš affirmed he would “follow the laws” if appointed as premier, but declined to explain how in advance because the matter was “an highly personal and personal matter for me, and journalists will always criticise me anyway”.

During his initial tenure as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over possible conflicts of interest. He placed his assets into fiduciary arrangements, while keeping some influence over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to reveal details.

Coalition Agreement and International Implications

The billionaire populist has concluded a governing pact with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s Green Deal.

The incoming administration, if confirmed, is likely to bolster the populist movement in the region and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda add a statement on the government’s position on Russia’s war in Ukraine, including a pledge to meeting Nato obligations.

The head of state has previously stated he would not endorse any cabinet candidates who might doubt the nation's EU and Nato commitments, a requirement that the far-right SPD has said it will meet by proposing independent technocrats.