🔗 Share this article

Andrej Babiš, the self-styled tycoon who won the recent parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will address a ethical dilemma that might block him from taking the role of head of government.

Position on Business Holdings

Babiš, whose ANO party came first in the autumn vote but did not secure a parliamentary majority, stated in a social media post that he would not sell his Agrofert group, which is active in farming, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have consistently said I will address the conflict of interest in accordance with Czech and European laws,” Babiš remarked. “This is not like selling a roll in a bakery.”

Head of State's Demand

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate conflicts of interest stemming from his business activities before assuming the role of premier.

The national charter “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the ways to address it” when selecting cabinet members, the presidential administration noted.

The president “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to appoint Babiš as premier “without delay” once the matter was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European countries, receiving substantial funds in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or contracts. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, decline government deals, or stay out of government.

Previous Tenure and Present Intentions

Babiš said he would “follow the laws” if appointed as premier, but declined to detail how in advance because the matter was “an extremely sensitive and private affair for me, and journalists will invariably question me anyway”.

During his first term as premier, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He placed his assets into trust funds, while keeping some influence over them.

A court and the European Commission both determined that this did not suffice. Babiš confirmed last month that he was again the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose specifics.

Governing Deal and International Consequences

The wealthy politician has signed a governing pact 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 opposed the EU’s environmental policy.

The new government, if approved, is likely to strengthen the populist movement in the region and could strain backing from Western nations for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also demanded that the government agenda include a statement on the official stance on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The president has previously said he would not endorse any cabinet candidates who might question the nation's international alliances, a condition that the ultra-conservative party has said it will satisfy by proposing non-partisan experts.