🔗 Share this article

Andrej Babiš, the self-styled tycoon that won last month's parliamentary vote, has refused to sell his vast business interests, while asserting he will resolve a ethical dilemma that might prevent him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the October vote but lacked a majority in parliament, stated in a online statement that he would not divest his Agrofert conglomerate, which operates in farming, food production, and chemicals.

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

Head of State's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must publicly explain how he will remove conflicts of interest arising from his business activities before being appointed prime minister.

The Czech constitution “clearly mandates the president to consider the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration noted.

The head of state “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement said, noting that Pavel was prepared to designate Babiš as prime minister “immediately” once the matter was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous companies, primarily under the Agrofert umbrella, operate in the nation and other central European countries, benefiting from substantial funds in domestic and European farming and other grants, as well as government deals.

Under national legislation, cabinet members cannot receiving state support or contracts. The ethics organization Transparency International has indicated that to prevent a conflict of interest, Babiš must either sell, refuse government deals, or stay out of government.

Previous Tenure and Present Intentions

Babiš affirmed he would “abide by the regulations” if selected as premier, but declined to explain how in advance because the issue was “an highly personal and private affair for me, and journalists will always criticise me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced multiple court cases and an European inquiry over possible conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining certain control over them.

A judicial body and the EU executive both determined that this did not suffice. Babiš stated last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a conflict of interest, but declined to disclose details.

Governing Deal and Foreign Policy Implications

The wealthy politician has signed a governing pact with two minor right-leaning groups, the ultra-conservative, pro-Russian SPD, which has advocated a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The incoming administration, if confirmed, is expected to bolster the populist movement in the region and could strain western support for Ukraine – even though Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as president has a role for foreign policy, also demanded that the government agenda add a statement on the government’s position on the conflict in Ukraine, including a pledge to meeting Nato obligations.

The head of state has earlier stated he would not approve any ministerial nominees who might doubt the nation's international alliances, a condition that the far-right SPD has said it will satisfy by nominating non-partisan experts.