🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon who won the recent Czech election, has declined to offload his extensive corporate assets, while asserting he will resolve a conflict of interest that might prevent him from assuming the position 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 will not divest his Agrofert group, which operates in agriculture, food processing, and chemical industries.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in accordance with national and EU regulations,” the billionaire remarked. “This is different from selling a pastry in a bakeshop.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his business activities before assuming the role of premier.

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, Pavel's office noted.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his statutory duties”, the announcement said, noting that Pavel was ready to designate Babiš as premier “immediately” once the issue was resolved.

Business Operations and Regulatory Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the Czech Republic and other regional countries, receiving millions of euros in national and EU farming and other grants, as well as government deals.

Under national legislation, government ministers cannot receiving state support or agreements. The anti-corruption organization Transparency International has stated that to prevent a ethical breach, Babiš must either sell, decline public contracts, or not enter government.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the regulations” if appointed as premier, but did not want to explain how in advance because the matter was “an highly personal and personal matter for me, and the media will always question me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced several legal battles and an European inquiry over potential conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both determined that this was insufficient. Babiš stated last month that he was once more the sole owner of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose specifics.

Coalition Deal and Foreign Policy Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The incoming administration, if approved, is likely to strengthen the populist bloc in the region and might 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 has a role for foreign policy, also demanded that the coalition’s programme include a declaration on the official stance on the conflict in Ukraine, with a commitment to fulfilling Nato obligations.

The head of state has previously stated he would not endorse any cabinet candidates who might question the nation's international alliances, a requirement that the far-right SPD has said it will satisfy by nominating non-partisan experts.