🔗 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 conflict of interest that might block him from assuming the role of head of government.

Position on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a parliamentary majority, stated in a social media post that he will not divest his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the conflict of interest in compliance with Czech and European laws,” Babiš commented. “This is not like selling a pastry in a bakery.”

President's Demand

The head of state, Petr Pavel, announced that the 71-year-old political figure must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings before being appointed prime minister.

The national charter “explicitly requires the head of state to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration explained.

The head of state “expects clarity in what precise manner Andrej Babiš will meet his constitutional and legal obligations”, the announcement said, stating that Pavel was prepared to appoint Babiš as premier “without delay” once the issue was settled.

Business Operations and Regulatory Concerns

Babiš's several hundred firms, mostly under the Agrofert umbrella, operate in the Czech Republic and other central European states, receiving substantial funds in domestic and European agricultural and other grants, as well as public contracts.

Under Czech law, government ministers cannot obtaining public aid or contracts. The anti-corruption organization Transparency International has stated that to prevent a ethical breach, Babiš must either divest, decline public contracts, or not enter public office.

Past Tenure and Current Plans

Babiš said he would “abide by the regulations” if appointed as prime minister, but declined to explain how in advance because the matter was “an highly personal 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 European inquiry over possible conflicts of interest. He placed his holdings into trust funds, while keeping certain control over them.

A court and the European Commission both determined that this did not suffice. Babiš stated recently that he was once more the sole owner of Agrofert and insisted he was “implementing measures” to prevent a conflict of interest, but refused to disclose details.

Governing Agreement and Foreign Policy Consequences

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

The incoming administration, if approved, is expected to bolster the populist movement in the region and might challenge backing from Western nations for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for international relations, also demanded that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to fulfilling alliance duties.

The head of state has earlier stated he would not approve any cabinet candidates who might doubt the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has indicated it will meet by nominating independent technocrats.