🔗 Share this article

Andrej Babiš, the self-styled tycoon who secured victory in the recent Czech election, has declined to offload his extensive corporate assets, while asserting he will address a ethical dilemma that might block him from assuming the position of head of government.

Position on Business Holdings

Babiš, whose political movement emerged victorious in the October vote but did not secure a parliamentary majority, declared in a social media post that he will not divest his Agrofert conglomerate, which is active in agriculture, food production, and chemical industries.

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

President's Requirement

The Czech president, Petr Pavel, stated that the elderly populist must clarify openly how he will eliminate ethical conflicts arising from his corporate dealings before being appointed prime minister.

The Czech constitution “explicitly requires the president to take into account the possible emergence of a ethical issue and the ways to address it” when selecting cabinet members, Pavel's office explained.

The head of state “wants it to be clear in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, noting that Pavel was prepared to appoint Babiš as prime minister “without delay” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's numerous firms, primarily under the Agrofert group, function in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European farming and other grants, as well as public contracts.

Under national legislation, government ministers are barred from receiving state support or contracts. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or not enter public office.

Past Tenure and Present Plans

Babiš said he would “abide by the regulations” if selected as prime minister, but did not want to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably criticise me regardless”.

During his first term as premier, from 2017 to 2021, Babiš encountered several legal battles and an EU investigation over potential ethical issues. He temporarily moved his holdings into trust funds, while retaining certain control over them.

A court and the European Commission both ruled that this was insufficient. Babiš stated recently that he was again the exclusive proprietor of Agrofert and maintained he was “implementing measures” to avoid a conflict of interest, but refused to reveal details.

Governing Deal and Foreign Policy Implications

The billionaire populist has concluded a governing pact with two minor right-leaning groups, the far-right, pro-Russian SPD, which has called for a public vote on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s Green Deal.

The new government, if confirmed, is likely to strengthen the populist bloc in central and eastern Europe and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as president has a role for foreign policy, also demanded that the government agenda include a statement on the official stance on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The president has previously said he would not approve any ministerial nominees who might doubt the Czech Republic’s international alliances, a condition that the ultra-conservative party has indicated it will satisfy by proposing non-partisan experts.