🔗 Share this article

Andrej Babiš, the self-styled billionaire who secured victory in the recent parliamentary vote, has declined to offload his extensive business interests, while insisting he will address a conflict of interest that could block him from taking the role of prime minister.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the October election but lacked a majority in parliament, declared in a online statement that he would not sell his Agrofert group, which is active in agriculture, food production, and chemical industries.

“I have repeatedly said I will never sell Agrofert. I have repeatedly said I will resolve the conflict of interest in compliance with national and European laws,” Babiš remarked. “This is different from selling a pastry in a bakery.”

Head of State's Requirement

The Czech president, Petr Pavel, announced that the 71-year-old 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 possible emergence of a conflict of interest and the possibilities for its resolution” when appointing government ministers, the presidential administration 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 said, stating that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred firms, primarily under the Agrofert umbrella, function in the Czech Republic and other central European countries, receiving millions of euros in domestic and European agricultural and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either sell, decline public contracts, or stay out of public office.

Past Term and Present Intentions

Babiš said he would “follow the regulations” if appointed as prime minister, but declined to detail how in beforehand because the matter was “an extremely sensitive and private affair for me, and the media will invariably criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš encountered multiple court cases and an EU investigation over potential conflicts of interest. He placed his assets into trust funds, while keeping certain control over them.

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to disclose specifics.

Governing Deal and International Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily opposed the EU’s environmental policy.

The new government, if approved, is expected to bolster the populist movement in the region and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme add a statement on the government’s position on the conflict in Ukraine, with a commitment to meeting alliance duties.

The president has previously stated he would not endorse any cabinet candidates who might doubt the Czech Republic’s international alliances, a requirement that the far-right SPD has indicated it will satisfy by proposing non-partisan experts.