🔗 Share this article

Andrej Babiš, the self-styled billionaire that secured victory in the recent parliamentary vote, has declined to offload his extensive corporate assets, while insisting he will resolve a conflict of interest that could block him from taking the role of head of government.

Stance on Corporate Empire

Babiš, whose ANO party emerged victorious in the autumn election but lacked a majority in parliament, declared in a online statement that he will not divest his Agrofert group, which operates in farming, food processing, and chemicals.

“I have repeatedly stated I will never sell Agrofert. I have consistently stated I will resolve the conflict of interest in compliance with Czech and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakery.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the 71-year-old populist must clarify openly how he will eliminate ethical conflicts stemming from his business activities before being appointed premier.

The national charter “explicitly requires the head of state to consider the potential occurrence of a ethical issue and the ways to address it” when selecting government ministers, Pavel's office explained.

The president “wants it to be clear in what specific way Andrej Babiš will fulfil his statutory duties”, the announcement added, noting that Pavel was prepared to designate Babiš as prime minister “without delay” once the issue was settled.

Corporate Activities and Legal Issues

Babiš's several hundred firms, mostly under the Agrofert umbrella, function in the nation and other regional states, benefiting from substantial funds in national and EU agricultural and other subsidies, as well as government deals.

Under Czech law, cabinet members are barred from obtaining public aid or contracts. The anti-corruption watchdog Transparency International has stated that to avoid a ethical breach, Babiš must either divest, decline government deals, or not enter public office.

Previous Tenure and Current Intentions

Babiš said he would “abide by the regulations” if selected as prime minister, but declined to detail how in beforehand because the matter was “an extremely sensitive and personal matter for me, and journalists will invariably question me anyway”.

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

A judicial body and the European Commission both ruled that this did not suffice. Babiš confirmed last month that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a ethical problem, but declined to disclose details.

Governing Deal and International Implications

The billionaire populist has concluded a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a referendum on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if confirmed, is likely to strengthen the populist bloc in the region and might challenge backing from Western nations 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 international relations, also requested that the government agenda include a declaration on the official stance on the conflict in Ukraine, with a pledge to meeting Nato obligations.

The head of state has previously said he would not endorse any ministerial nominees who might question the nation's international alliances, a requirement that the ultra-conservative party has said it will meet by proposing non-partisan experts.