🔗 Share this article

Andrej Babiš, the self-proclaimed billionaire that secured victory in last month's Czech election, has declined to offload his extensive business interests, while asserting he will address a ethical dilemma that might prevent him from taking the position of prime minister.

Stance on Business Holdings

Babiš, whose ANO party came first in the autumn vote but did not secure a majority in parliament, stated in a online statement that he will not divest his Agrofert group, which operates in agriculture, food production, and chemical industries.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in compliance with national and EU regulations,” Babiš remarked. “This is not like selling a pastry in a bakeshop.”

President's Demand

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

The Czech constitution “clearly mandates the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when appointing cabinet members, the presidential administration explained.

The head of state “expects clarity in what specific way Andrej Babiš will meet his constitutional and legal obligations”, the statement said, stating that Pavel was ready to designate Babiš as prime minister “without delay” once the matter was resolved.

Corporate Activities and Regulatory Issues

Babiš's several hundred companies, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, benefiting from substantial funds in domestic and European farming and other subsidies, as well as public contracts.

Under national legislation, cabinet members are barred from obtaining state support or agreements. The anti-corruption watchdog Transparency International has indicated that to prevent a conflict of interest, Babiš must either divest, decline government deals, or not enter public office.

Previous Term and Present Intentions

Babiš affirmed he would “abide by the laws” if selected as prime minister, but declined to explain how in advance because the issue was “an extremely sensitive and personal matter for me, and the media will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over potential ethical issues. He placed his assets into fiduciary arrangements, while keeping certain control over them.

A court and the European Commission both ruled that this did not suffice. Babiš confirmed last month that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a ethical problem, but declined to reveal details.

Coalition Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two rightwing fringe parties, the far-right, pro-Russian SPD, which has advocated a referendum on exiting the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

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

Pavel, who as president shares responsibility for international relations, also requested that the government agenda include a declaration on the official stance on the conflict in Ukraine, including a commitment to meeting Nato obligations.

The head of state has earlier said he would not endorse any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will satisfy by proposing independent technocrats.