🔗 Share this article

Andrej Babiš, the self-styled billionaire who won last month's Czech election, has refused to sell his vast business interests, while asserting he will address a conflict of interest that could block him from assuming the role of head of government.

Stance on Corporate Empire

Babiš, whose political movement came first in the October vote but lacked a parliamentary majority, stated in a online statement that he would not sell his Agrofert conglomerate, which operates in farming, food production, and chemical industries.

“I have consistently stated I will not sell Agrofert. I have consistently stated I will resolve the ethical issue in compliance with national and European laws,” Babiš commented. “This is different from selling a roll in a bakeshop.”

Head of State's Demand

The head of state, Petr Pavel, stated that the elderly political figure must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings 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 ways to address it” when selecting cabinet members, Pavel's office explained.

The president “wants it to be clear in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was ready to appoint Babiš as premier “immediately” once the issue was resolved.

Corporate Activities and Regulatory Concerns

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

Under Czech law, government ministers are barred from obtaining state support or contracts. The ethics watchdog Transparency International has stated that to avoid a conflict of interest, Babiš must either sell, refuse government deals, or not enter government.

Previous Term and Present Plans

Babiš said he would “follow the regulations” if selected as premier, but declined to detail how in beforehand because the matter was “an extremely sensitive 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 EU investigation over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both determined that this did not suffice. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and maintained he was “taking steps” to avoid a conflict of interest, but declined to reveal details.

Coalition Agreement and Foreign Policy Implications

The billionaire populist has signed a governing pact with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s environmental policy.

The incoming administration, if approved, is expected to strengthen the populist bloc in the region and could challenge backing from Western nations for Ukraine – even though Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of Czech support.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme add a statement on the government’s position on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.

The head of state has earlier said he would not endorse any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by proposing independent technocrats.