🔗 Share this article

Andrej Babiš, the self-proclaimed tycoon that won last month's parliamentary vote, has refused to sell his vast business interests, while asserting he will resolve a conflict of interest that might block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party came first in the October vote but lacked a majority in parliament, stated in a social media post that he will not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemicals.

“I have consistently said I will never sell Agrofert. I have repeatedly stated I will address the ethical issue in accordance with Czech and EU regulations,” Babiš commented. “This is different from selling a roll in a bakery.”

President's Demand

The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will remove conflicts of interest arising from his corporate dealings before assuming the role of prime minister.

The Czech constitution “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 “expects clarity in what specific way Andrej Babiš will fulfil his constitutional and legal obligations”, the statement added, stating that Pavel was ready to designate Babiš as prime minister “immediately” once the issue was resolved.

Business Operations and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert group, function in the Czech Republic and other regional countries, benefiting from substantial funds in national and EU farming and other subsidies, as well as public contracts.

Under Czech law, government ministers cannot receiving public aid or contracts. The ethics organization Transparency International has indicated that to avoid a ethical breach, Babiš must either divest, refuse government deals, or not enter government.

Previous Term and Present Intentions

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

During his first term as prime minister, from 2017 to 2021, Babiš encountered several court cases and an EU investigation over potential conflicts of interest. He temporarily moved his holdings into fiduciary arrangements, while retaining some influence over them.

A court and the EU executive both determined that this was insufficient. Babiš stated recently that he was once more the exclusive proprietor of Agrofert and maintained he was “implementing measures” to prevent a ethical problem, but declined to reveal specifics.

Coalition Deal and International Consequences

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the ultra-conservative, Russia-friendly SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has primarily campaigned against the EU’s Green Deal.

The new government, if confirmed, is expected to strengthen the populist bloc in central and eastern Europe and could challenge western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for international relations, also demanded that the coalition’s programme include a statement on the government’s position on the conflict in Ukraine, including a commitment to meeting alliance duties.

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